Technology has undoubtedly changed the way we do things. While we can point to a slew of technological innovations that have transformed modern life, mobile online payments are indeed among the most prominent pieces of new technology.
Indeed, almost everything we could ever need is now just a push of a button away. This development has helped both consumers and sellers, as it has helped make commerce infinitely more convenient.
Now, we can’t talk about online and mobile payments without talking about PayPal. While most of us use PayPal every day, rarely do we ever go into the specifics of what it really is.
This isn’t surprising as the service is so convenient that we never have to give it a second thought. However, now is a better time than ever to examine what PayPal is and how it has changed how we do business!
What is PayPal?
PayPal made its first appearance back in 1999 and started as a way for people to send US dollars via email. Since then, it has evolved into one of the largest online payment systems in the world.
But what is it that PayPal does? To answer this question, we’ve broken down the three major elements of what makes PayPal tick.
Revolutionized Online Payment
While online and mobile payments are commonplace nowadays, this wasn’t always the case. However, PayPal changed the game when it became a payment option for the multinational e-commerce corporation eBay.
This lead to a surge in online payments, with over 1 million people making use of their services. Such a number would only increase in the years to come thanks to the gradual rise of the e-commerce industry indicated by the 95 million mobile payments made via cellphones back in 2003.
While many factors contributed to this, you can’t minimize the monumental effects that PayPal had on an entire industry. PayPal gave millions of people from all over the world a convenient and safe option to make online payments.
Largest Online Payment Transfer Platform
One of the most impressive things about PayPal is the sheer scale of its operations—it caters to the global e-commerce market. In fact, CNN’s article on digital payments reports that PayPal is the first foreign company to be permitted to cater to the Chinese digital payment market.
In fact, recent reports indicate that PayPal’s mobile payments have reached $227 billion in the last year alone. This makes PayPal one of the most popular payment methods for online transactions in the world.
Pioneer in Online Payment Security
It’s important to note that PayPal does more than just transfer money. They also ensure that the transaction is secure for both parties involved. This is no easy feat considering that 27% of all online sales end up being fraudulent transactions.
They do this through the use of various security checks. Due to the number of small businesses that use their services, they’ve also put several safeguards in place that are geared towards protecting their sales.
How PayPal is Transforming How We Do Business
While we’ve already talked about what PayPal is all about, how does this all translate into the real world? PayPal has optimized how we do business in the digital age. The company has provided businesses with tools to help them with their day to day operations.
Offers Online Payment Solutions
The digital space is the future of business. Entrepreneur’s article on e-commerce highlights how many brands nowadays are adopting a digital-first strategy and are heavily investing in their online acquisition channels.
This has resulted in a massive surge in online sales. PayPal helps make these sales possible through the use of their online payment platform. The company also allows businesses to add a checkout button on their site.
This will become even more important in the years to come as more and more businesses optimize their brands for e-commerce. And considering that CNBC reports that the e-commerce industry has grown by at least 30% in the last year, the shift to digital may come sooner rather than later.
POS Services
While PayPal is focused on improving transactions in the digital space, it doesn’t mean that they don’t provide services for physical stores as well. The company does have a point-of-sale (POS) system called PayPal Here.
PayPal provides businesses with a comprehensive all-in-one payment solution that’s both convenient and reasonably priced. What’s even better is that they’ve partnered up with a multitude of POS systems making PayPal Here POS a good fit for a variety of different businesses.
Seller Protection
One of the most important services that PayPal provides to businesses is seller protection. With the number of fraudulent sales and bogus claims, businesses need all the help they can get. This is why online security is key, especially for brands that conduct their business in the digital space.
They have put security measures in place to protect sellers from all forms of chargebacks and fraud. They’re able to do this by thoroughly examining claims made by buyers. If the claims don’t hold up, they will make the funds available to the businesses as per their Seller Protection agreement.
Increase Checkout Conversion
Businesses have discovered a newfound appreciation for improving customer experience. They’ve realized that focusing on customer experience tends to lead to an increase in overall sales.
When it comes to commerce, a business’s goal has to make the transaction as convenient as possible. Wired’s article on transactions highlights how frictionless transactions are one of the trends shaping the future of commerce.
This is where PayPal shines. You can make both online and digital purchases with one click of a button. This is has increased checkout conversion for many brands and businesses due to how easy and smooth the entire process is.
Quick heads up Learn 6 PayPal Alternatives for Business Owners
We hope that this article helped you gain a better understanding of PayPal. If you’re looking for more resources on the best services and business solutions for small businesses, check out ProcessingCard today!
Florence Carpenter is passionate about ensuring that the process of opening merchant accounts is as straightforward as possible. She graduated from the University of Michigan with a bachelor’s degree in Marketing.
