Introduction
PayPal is an online compensation company established in mid-1998. In 2002 they became the primary payment option of eBay and today remains a high-quality solution for eBay patrons. PayPal is available in over 202 countries and receives funds in over 100 currencies. It also offers its clients withdrawals in 56 different currencies, making it one of the oldest and top processors globally.
Over the years, PayPal has built a stable and extensive network of consumers and merchants using and accepting their payment services. However, Technology and a sales shift to digital, has made Paypal face an increasing number of threats from newer companies, banks and credit card issuers. Added to this, new Financial Companies are opening up all over the world, so the slice of the pie gets smaller and smaller for Paypal.
In saying this, there are a few factors that give PayPal an advantage over its competitors. Firstly, many online shops worldwide use them as a payment solution and the general public who own a Paypal account can transfer funds from one account to another at a relatively cost.
Secondly, is the fact that banks are encouraging their customers to add their credit cards to PayPal, therefore strengthening their competitive advantage.
The bottom line is that they have an excellent reputation which has taken years to build and have maintained exceptional levels of service and delivery.
Paypal and Online Casinos
As Paypal is such a convenient and easy payment option, it was only a matter of time until UK paypal casinos started integrating them into their payment options. At the moment only online casinos in Europe and the United Kingdom can deposit using Paypal.
Benefits of using PayPal
The point of payment services like PayPal is to ensure a safe, reliable and speedy checkout when shopping online. To that end, PayPal is exceptional as it converts shoppers into paying customers at a rate of 82% higher than all other payment options. Furthermore, it converts 60% better than other digital wallets.
The reason for this increase is due to Paypal providing their users with more options because previously, PayPal forced their users to use their existing balances and defaulted payments to bank accounts. This resulted in lower processing fees than credit cards. In line with staying in the game, PayPal negotiated with a series of payment networks offering users greater flexibility in how customers pay for their online purchases.
As previously mentioned is the fact that credit card issuers want consumers to add their cards to PayPal and issuers have been incentivizing customers to do so with cashback and reward points. PayPal has also infiltrated other digital wallets and partnered with companies like Google and Samsung who now offer it as a payment option in their digital wallets
Key Services offered by PayPal
PayPal has sustained its strong growth through the introduction of various partnerships across commerce and payment space. Some of the critical services PayPal offers its users are:
- The transfer of money globally
- Rewards on PayPal debit cards
- One-Touch Easy checkout
PayPal also created and acquired a suite of products that target different markets. Venmo is its payment product that serves the Millennial market using smartphones and social networks. PayPal was innovative enough to change a primary transaction into a social experience. How may you ask? Well, it’s simple; your friends can see what you’re doing on your social networks through your Venmo payments.
They also acquired a company called Xoom which gives people the ability to move funds internationally via their mobile phones and costs half of what international remittance providers charge. It’s easier and less expensive, and once again, PayPal is at the forefront of being innovative and continuously looking for the competitive edge.
PayPal’s Strategic Partnerships
To sustain and increase its customer base, PayPal partnered with some top card network incumbents, which include:
- Visa
- MasterCard
- Alibaba.com
- Citi
- Telcel
- Vodafone
- Discover
- GoPay
They have also entered into partnerships with a multitude of other companies across the eCommerce and payment space which include cybersecurity firms, social media platforms such as Facebook and Instagram as well as the popular Uber service used throughout the world.
Conclusion
PayPal has seen explosive growth since its inception, and its flexible yet strategic business model has provided a safe and secure way for customers and merchants to benefit and transact online. Further to this, is PayPal’s partnership with various companies such as Uber, Visa, MasterCard, and many more. They have sustained their growth and increased their user base, thus remaining relevant in light of new entrants. They have a legacy of which they can be proud of and will continue to offer top-class service to their customers by remaining one of the most competitive and innovative companies.
