We use PayPal for sending money.
Founder & President - RippleMatch
Stripe is our trusty credit card processor and they have been great to work with. That said, we are excited because PayPal is being implemented as we speak! Being in financial services we’re held to a higher standard so it took awhile to get accepted into their merchant program, but we’re in! We are excited because we know that merchants who accept PayPal see much higher sales than those who do not. This means that contributions to female entrepreneur campaigns should go up, so we can’t wait to see how the PayPal integration helps to grow our entrepreneurs' bottom lines.
Founder & CEO - iFundWomen
PayPal has a monopoly but has no support, and no documentation. We use it for reimbursing expenses by the Collective.
Founder & CEO - Open Collective
We tried setting up Stripe but we could not because of the lack of support for a PayPal integration. In our market, there is deep PayPal penetration. That said, Stripe has made great strides in supporting marketplaces like Panjo with casual sellers. We are actively reconsidering Stripe.
CEO - Panjo
PayPal is OK.
Founder & CEO - Zuvaa
Our billing is generally to large companies. We and they predominantly use invoices and money transfers. For smaller clients we use either Paypal or Stripe.
Alain van Gils
Co-founder & CEO - T-shaped
We basically use whatever is more convenient locally. We use Paypal and Braintree as well. These are tools born to be quickly integrated and mobile friendly. They have higher fees than a traditional method. If you are a small merchant you wouldn’t feel the difference, but at higher volumes you have to take that into account.
Co-founder & CTO - Musement
PayPal is not common here.
Co-founder - Bayzat
When we first started Really Good Emails, we were billing clients and telling them to go through Stripe and pay. Then we realized it would be faster and less fuss to send a PayPal invoice, even though there were a little bit more fees. Stripe wasn’t worth the headache for the back and forth people had to go through to pay.
Co-founder and Business Development - Really Good Emails
We use PayPal. It’s effective, even though it’s not super favorable. It works for our product.
Founder - Printabowl
We used PayPal first for pre-orders and it was a disaster. They did not like the concept. It was either “ship the product” or “refund the money” with PayPal, so we had to refund everyone.
Co-founder & CEO - UCIC
The PayPal API is much more complicated than Stripe’s or 2Checkout’s. We’ve had to try to customize the PayPal API for some clients. PayPal is good for simple things, but once you get into more complicated customization, there is a lot of documentation to go through.
Co-founder - ComicReply
We use PayPal for the small licensing business that we do. It works fine for us. We just went with it because it is the most popular tool out there.
Founder - Andy OS
We use PayPal because it is universal--you can receive payments from anywhere in the world.
Founder & CEO - MySiteAuditor
PayPal is not straightforward to set up and use for any large scale business. We use it only because our customers want to be able to pay with it. We’ve had problems in the past with bugs and security concerns; it takes customers outside of our app and I have never had a reply back from any of my emails to them. They’ve changed their reporting interface and it’s a fairly poor UI, and it starts to get complicated if you have multiple currencies. That said, it remains a very popular option, especially for European customers, so we live with it!
Co-founder & CEO - YouCanBook.Me
PayPayl's payflow gateway is a very low level solution. We adopted it because we needed a very custom setup - we could not go with an out-of-the-box solution.
Co-founder & COO - TradingView
Credit cards processed through Eventbrite are processed through PayPal, so we use PayPal, by extension.
Founder - VentureOut
I’ve been using PayPal for out of country payments, but it’s getting expensive.
Founder & CEO - FORTE
We don’t take payments directly, but we use PayPal at times through Eventbrite, for tickets to our events, like demo days.
Co-founder & Co-director - Boomtown Accelerator
We use PayPal for smaller transactions.
Founder & CEO - Museum Hack
We use PayPal occasionally to pay people. It’s been fine and does its job.
Co-founder - Monarq
We’ve built a super alpha experience on Shopify for HelloFlo, our e-learning platform that offers paid educational videos about women’s health. We first used Stripe, but when we put up a PayPal button, sales went up 30%! People seem to be more comfortable paying via PayPal.
Founder & CEO - VProud
PayPal adds credibility to our business, which is a huge plus, but the fees are not very friendly. There’s a great program called Blueprint, that is perfect for startups. It gives you the option with PayPal and Braintree (which was acquired by PayPal) to have them not take any fees for the first year or so, or until you hit $1.15 million in transactions. I’m not sure if the program is available for new signups, but it’s been good for us.
Co-founder & CEO - Veed.Me
Typically when I pay people internationally, I pay them via PayPal.
Co-founder & CEO - Sociality Squared
PayPal is a very good partner. They are very responsive if there any issues on either side of things.
Senior Network Administrator - Smartsheet
We use PayPal because it’s available worldwide for international payments. It’s not the best tool to use, but we started with them, so we’re sticking with them. We’re looking to choose something else, but currently, we don’t have the time to change it. PayPal works in 90% of situations for us, so that’s good enough for us for now.
Co-founder - Chrobrus
Our whole business relies on credit card processing. When our members sign up, they go to a page hosted on WooCommerce, an ecommerce platform built on WordPress. We essentially built a WordPress site with an ecommerce plug-in. We left Authorize.Net and went with PayPal because they gave us the cheapest credit card processing rates. One huge con is that PayPal’s reporting stinks! But for a small business that’s bootstrapped, we had to go with what was cheapest.
Founder & CEO - Venwise
We prefer Stripe's user experience, but donation fraud has been as much of a problem for us as for so many other non-profits. We're using Paypal specifically because it introduces more friction into the payment process, but we'd like to go back to Stripe with a more robust fraud-detection layer.
CEO - DoSomething
We use PayPal and Stripe equally. It’s really up to the user to decide which platform they want to use. Everyone knows and trusts PayPal. We use PayPal more at bigger events.
Chief Operations Officer - CTRL Collective
We have a very international audience, and people sometimes have issues with PayPal accepting their cards. We looked into Stripe too, but it seems to have same issue.
Co-founder & COO - RealLife Global
We don’t see a lot of our corporate business accounts using PayPal, and most B2B companies use wire transfers, pay by check or use ACH. But occasionally, we do have some businesses that pay us via PayPal. And a bunch of our affiliates pay by PayPal, as well.
CEO & Founder - DK New Media
We have a business account set up with PayPal, and it works fine.
CFO - Makeable
I pay my contractors via PayPal. I like that it integrates with FreshBooks. Most clients pay me via PayPal and that automatically gets logged into FreshBooks. And if they pay me by check or ACH, I can record it as “paid” in FreshBooks very easily. If a company pays me via credit or debit card, they can do that easily via PayPal. I really love that PayPal works internationally. I have clients in 14 countries, so the international support is crucial.
Founder & CEO - Writing It Right For You
We use PayPal because it’s integrated into one of the products, and some clients prefer to pay us via PayPal.
President & Founder - SmarterU
We use PayPal because they’re the simplest to use. I actually dislike PayPal, but I need it. They take such a big chunk of payments; 2% per payment is a lot of money! If banks could just figure out how to send and receive one-time payments like PayPal and make it sleeker and simpler, they’d win the day. I use my bank’s Bill Pay feature all the time, and it’s extremely simple for recurring payments, but not for one-time payments, which is why we have to use PayPal. US banks are not very good with international transactions either. If a bank could figure out how to do that, they’d take a chunk out out of PayPal’s business.
Founder & CEO - Halo Life Science
We have a love/hate relationship with PayPal. I love it because we don’t have to worry about storing anyone’s credit card information. But it can be frustrating when working with customers who don’t like it and refuse to use it. In those cases, they’ll send us a check, and it’s not a huge deal, but the fact that there are customers who feel so strongly against it does create a bit of work for us.
Co-founder - LiveBinders
It’s so easy to set up and always reliable.
Founder & CEO - Publicize
We originally used PayPal because that was the best option at the time. Everyone thought adding PayPal’s Express Checkout would ease the checkout process, but that just wasn’t true. We had a lot of technical issues with PayPal, and their developer sandbox was broken most of the time. Transactions would constantly fail, for no real reason. We had to glue together code to keep retrying transactions, but it just wasn’t a good long-term solution. Now we use Stripe and Avalara to automate sales tax collection and reporting to the states.
Vice President of Technology - Golf Genius Software
We use PayPal for sending international payments and event ticketing. PayPal is integrated with Eventbrite, and it all just works. It’s very useful for us, and we haven’t found any other tool that does the same thing.
Editorial Director & Editor-in-Chief - ReadWrite
We have over 900 writers, and we connect with them through PayPal and Stripe to make payments very easy. We pay them using their PayPal account and we use Stripe for marketplace to process payments and payouts as well. We use Paypal because of their deep reach, and because they have been around for a long time, and can process payments effectively in different countries. We want our platform to be very international and globally driven, and we want to reach as many people as possible without technical issues. We’re always weighing our options to to find what is most convenient for our providers.
Founder - Jurnid
We also accept a lot of checks. Nothing formal here--there are only two of us.
CEO & Chief People Person - Founders Bloc
We use PayPal (in addition to Stripe), but we only use it for outgoing payments. We avoid it because it's a little more complicated to use, but everyone has it.
Co-founder - Cooperatize
PayPal allows us to directly transfer T&E reimbursement funds to employees’ bank accounts.
Founder & CEO - Kargo
Consumer trust is a key factor in our business, and PayPal has the strongest brand in payments.
CEO & Co-founder - Derby Games
PayPal is PayPal and expensive.
Founder & CEO - AirHelp
We're using PayPal. They have given us a great rate and are generally very responsive. If a competitor came to us with a fantastic rate, we would consider switching, but for now PayPal does everything we need.
Co-founder & CEO - Care+Wear
They’re crazy expensive. The commissions they charge are just ridiculous. We've just stuck with them because it's so widespread, but that's probably why they get away with charging so much.
Founder & CEO - EventBrowse.com
12%Stacklist Startups Are Using PayPal
To the general public, PayPal is one of the most well-known payment processors, but relatively few companies use PayPal as their main payment processor, largely due to a complicated interface and reports of iffy customer service. Instead, most Stacklist founders use PayPal to supplement their primary credit card processing tool. But PayPal does have its upsides: It’s easy to set up, handy to have as a payment option for specific clients or customers that can’t or don’t want to pay with a credit card, and virtually ubiquitous among consumers.
PayPal is usually used in conjunction with other payment gateways and tends not to be startups’ main payment solution.
Setting up a seller account using PayPal is very easy, and you can choose from two options:
PayPal allows you to process and send international payments in a wider range of countries than other payment gateways. For example, Stripe is currently only available in about 25 countries whereas PayPal is in over 200.
Businesses tend to use PayPal because it is PCI DSS compliant – since if you wanted to do it, you would need to self-host almost everything to make sure your web hosting is stored secured and maintained properly.
PayPal makes for a great out of the box solution, but it does have some faults. Customers have noted that sometimes PayPal does freeze accounts if they have reason to suspect fraudulent activity, stopping you from accessing your money. More on this below.
PayPal customer service is hit or miss at times. Representatives have different experience, so if you find yourself with one who isn’t helpful, we would recommend calling back and speaking with someone else.
PayPal tends to be used by smaller Seed and Series A B2C startups that use it in conjunction with another payment processor (Stripe, for the most part). The platform is occasionally put to use by larger B2C companies that have clients with limited payment options. As an example, a school district may want to pay for a service, but may not have a credit card for easy online purchases.
PayPal does not have any setup fees, cancellation fees or annual fees. Although they do have monthly fees if you are using PayPal Pro, which is $30 per month, recurring billing, which is $10 per month, or any of their added services.
PayPal charges 2.9% + $0.30 per transaction in the US.
PayPal gets a bit more expensive when it processes international sales/exchanges. For international sales, there’s an additional 2.5% charge for currency conversion, and then an added 1% international transaction fee.
Large user base
Although there are several other payment gateway options, businesses use PayPal because it’s the industry standard and customers love to use it. One of the most important standout features for PayPal is its enormous footprint. Network effects are essential to a payment tool and, in PayPal’s case, it’s far more the norm than the exception that both a seller and a buyer will have a PayPal account.PayPal is currently in over 200 countries, and there are nearly 200 million active account holders. Entrepreneurs have found that when they add “Checkout with PayPal” options to their websites, that conversions increase.
That’s because of the added security consumers feel when they find PayPal on a site. B2C startups tend to offer PayPal as a payment option, although in the overall tech space Stripe is more prevalent.
Using PayPal’s API and button builder, you can create buttons to include on your site to match your business and items you sell. Button text can range from “Buy Now,” “Subscribe,” “Donate,” and more. This makes PayPal a great solution for any business. There also have different options available for e-commerce business to have customers choose what kind of size and color for apparel.
Using the customizable drop down menus, it becomes easy for your customers to make sure they’re choosing the right product/plan. You get a maximum of 10 options using PayPal.
You can also add in mandatory text fields to get information from customers like their names, job titles, etc.
The customizable buttons make PayPal an ideal solution for any business or organization to receive payments from their customers.
You can use PayPal to customize buttons to get people to subscribe to your product. That way you get paid every month or whatever your period is.
PayPal lets you automatically bill your customers if they sign up for that option. The automatic billing does not need any more confirmation after the payment is set up.
With PayPal, it’s easy to create and send customized/branded invoices with their invoice builder.
It’s free to send invoices and track payments and manage from your PayPal account. The invoice builder is easy to understand and allows you to attach any related files or references, and bill multiple customers at the same time.
PayPal Here – Mobile Payments App
PayPal has a mobile payments app that lets you process credit card payments from anywhere. They have two types of card readers: a mobile card reader that only accepts credit and debit magnetic stripe cards, and a chip card reader that accepts magnetic stripe, chip card, contactless, and Apple Pay.
This is helpful for any entrepreneurs whose businesses sell physical products and are planning to do pop up shops or sell at events.
Common complaints about PayPal regard its pricing. Many businesses find Paypal’s fees to be insanely expensive. Complaints about pricing rise for international payments. There's an extra 2.5% charge for currency conversion, and 1% charge for international fees.
Once you reach a certain point in sales, it might make sense to become a traditional merchant account.
There have also been complaints about implementing and using the PayPal API. Startup founders have found the Stripe API to be much more developer friendly and easier to implement.
PayPal can get more expensive at scale as you do more business. It takes 2.9% from your sale, which can be a lot for large, expensive items. B2B businesses do use PayPal, but for that reason tend to prefer wire transfers or checks.
One of the most common complaints about PayPal deals with how the company freezes accounts without warning. PayPal will freeze your account if they suspect any fraudulent activity. Stories from users who've experienced this have many wary of PayPal, worried they could several thousands of dollars inaccessible.
A situation like that becomes terrible for a business reliant on its cash flow, like a consumer product or commerce business.
Its advised by users to make frequent transfers from their PayPal balance to their bank account in case accounts become locked.
Paypal is known for its buyer protection, and it appears to be a zero-sum game between pleasing buyers and sellers for PayPal. Buyers have a lot of rights when it comes to refunds and cases, where sellers seem feel like Paypal is leaving them with the short end of the stick. Sellers have complained about limited options when it comes to cases resolving customer disputes, and sometimes having evidence the buyer is laying a false claim.
PayPal is a widely used payment gateway, with several integrations already set up with popular e-commerce platforms like Shopify. PayPal is currently working on PayPal Commerce, which will make for an easy turnkey solution to create an e-commerce site.
You can also find other popular integrations with accounting platforms like Quickbooks, Xero, Freshbooks and more. This makes it easy to log and transfer payments, manage invoices and do away with manual data entry depending on the integration.
PayPal also integrates nicely with MailChimp, allowing you to add “Add to Cart” and “Buy Now” buttons to your email newsletters. The integration can also sync new PayPal customers to your MailChimp list.
We give it 4/5 stars. You should use it.
Visit the website: https://www.paypal.com