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Even though I absolutely agree that you shouldn't put all your eggs in one basket, it is ultimately the market that could drive you towards a dependency situati
by LeonM 7y ago
Even though I absolutely agree that you shouldn't put all your eggs in one basket, it is ultimately the market that could drive you towards a dependency situation.
I have had a couple of customers for which I set up both PP and another PSP (such as stripe). Then it turned out that about 90% of their transactions came from PP.
So even if I set up 10 different PSPs for them, if PP bans them, they will still be out of business.
- viraptor 7y agoThat doesn't necessarily follow. It shows that users prefer PayPal, but not that they wouldn't use alternatives if PayPal's not available. If they really want to know the answer, they could do an A/B test with missing PayPal and see how many people drop out without it. Also, was PP the default/first payment option by any chance?
- jdietrich 7y ago>If they really want to know the answer, they could do an A/B test with missing PayPal and see how many people drop out without it. I've done these tests, repeatedly; removing the PayPal payments option consistently leads to a statistically significant increase in cart abandonment. Some customers strongly prefer PayPal (especially on unfamiliar sites) and some don't have a credit card.
- viraptor 7y agoSure. But it still doesn't necessarily mean "PP bans them, they will still be out of business". It may. But I disagree with the jumping to conclusions unless it's been tested (and it doesn't sound like OP did)
- LeonM 7y agoI didn't, but that wasn't up to me, I just did the technical implementation for them.
- LeonM 7y ago> and some don't have a credit card If your customers are from Europe, it's not some, but most customers that don't have a credit card. Credit cards are uncommon here (probably hard to imagine if you are from USA). Online payments are a fragmented mess in Europe. Most countries have their own preferred online payment method (like iDEAL or bancontact), Paypal is basically the only reliable method that works everywhere.
- viraptor 7y ago> If your customers are from Europe This is not a great approximation. In the UK you can assume almost every person has a payment card that works on the internet (debit and/or credit). In Poland on the other hand, the number of systems gets silly (https://m.lot.com/us/en/payment-methods-on-lotcom https://m.lot.com/us/en/payment-methods-on-lotcom)
- LeonM 7y agoI guess that I was trying to say is: don't assume that people have credit cards. In many countries credit cards are uncommon.
- thedaemon 7y agoCredit / Debit cards are the same thing online. We, as is USA people, use the terms interchangeable often. I'm going to guess that most EU people have some form of banking card. So we will continue to assume that people have a form of payment other than cash.
- eythian 7y agoThis is not true. They are not always the same thing and assuming so is a bad idea. My debit card can't be used online except via iDeal, and only sites in this country (largely) support iDeal. I can, however, use it via paypal.
- LeonM 7y ago> Credit / Debit cards are the same thing online. No, they are not. With a credit card you can pay by entering the card number, expiry date and CVC. With debit card you can't do that. The payment must go through your bank. It's a completely different payment flow.
- nolok 7y agoNot parent but been there done that. Merely moving PayPal out from first / default choice to alternative translates to lost sales. Until you're big and known enough buyers don't trust you, but they trust PayPal.
- TomMarius 7y agoMy anecdote: Deprioritizing paypal directly leads to lost sales
- dkersten 7y agoPersonal anecdote: I often will prefer PP as a consumer out of laziness. Its quick and easy and most sites support it, but if PP isn't an option, then I'll happily use a different method.
- deleted 7y ago[deleted]