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Why is Paypal successful at all? It is really a pain to use, especially if you have a problem. If eBay and a few other sites didn't more or less force me to use

by T_S_ 17y ago

Why is Paypal successful at all? It is really a pain to use, especially if you have a problem. If eBay and a few other sites didn't more or less force me to use it, I never would.

obvioustroll 17y ago
Monopoly power - PayPal has no direct competition.
- mikeryan 17y ago
  Google Checkout?
  - SwellJoe 17y ago
    Google Checkout is at least as bad as PayPal, though for other reasons. The API is a clunker. The buying process is not particularly nice or fast for users (and it doesn't have the benefit of being familiar, like PayPal). There are a few things about Checkout to love. They take more responsibility for fraud than any other payments provider I know of. That has a lot of value, particularly for online retailers. The rates are better. They don't have the reputation for being shifty that PayPal has, though they'll probably earn one in time. When it comes to money, people get grouchy fast. Any mistakes, any perceived unfairness, any slight, will be trumpeted from the mountain tops (or sites like paypalsucks.com). It's just the nature of the business. I've never had a problem with PayPal, and we have $10k+ in our account most of the time, and I've been using it since nearly the beginning of its existence. I'm considering dropping merchant services payments altogether on our online shop and taking just PayPal, Google Checkout, and Amazon FPS. I haven't yet talked to enough customers to know whether this is a sane course of action, though.
    - mikeryan 17y ago
      ya not commenting, on Google C/O efficacy just pointing out that Paypal is very much NOT a monopoly with Google in the game.
  - wildwood 17y ago
    or any of the varied Amazon payment systems? https://payments.amazon.com/sdui/sdui/business https://payments.amazon.com/sdui/sdui/business
  - worldhello 17y ago
    google checkout is not available outside the us and europe i think, same with amazon
    - lux 17y ago
      Exactly. The others aren't even trying to expand to outside of the US, as far as any outsider can tell. It's frustrating to no end being a startup outside the US and having to rely on Paypal or a very slim selection of even crummier merchant providers here (Canada). I've had so many problems with the few providers that do offer service here that I grudgingly stick with Paypal now. Amazon, come on guys, support Canada already! Help us out!
petercooper 17y ago
I've been using PayPal for several transactions a month since 2002 with no problems. They did temporarily hold my account when I went over a certain limit, due to EU money laundering laws, but once I proved my ID, etc, it was back up and running. It's quick, easy, convenient and they're the only company I'm aware of that makes it easy to pass money around from place to place internationally. (That is, there are many local services, but as a Brit who does 80%+ of billing in US dollars, it's pretty much unbeatable.)
- ijuhytgjh 17y ago
  But if you are a Brit that moves to the US you are screwed. Paypal.com won't let you have an account because you already have a .uk account and the .uk account won't let you have a US address. You can't close the account and use the same email/credit card to create a new account because they are already in the system. Calling support just gets you form letters
randallsquared 17y ago
I don't know that they are successful, if you use actual profit as a criterion. I think eBay only bought them to keep them from going out of business; they're really helpful for eBay, but I don't think they make money.

by T_S_ 17y ago

Why is Paypal successful at all? It is really a pain to use, especially if you have a problem. If eBay and a few other sites didn't more or less force me to use it, I never would.

obvioustroll 17y ago

Monopoly power - PayPal has no direct competition.

mikeryan 17y ago
Google Checkout?
- SwellJoe 17y ago
  Google Checkout is at least as bad as PayPal, though for other reasons. The API is a clunker. The buying process is not particularly nice or fast for users (and it doesn't have the benefit of being familiar, like PayPal). There are a few things about Checkout to love. They take more responsibility for fraud than any other payments provider I know of. That has a lot of value, particularly for online retailers. The rates are better. They don't have the reputation for being shifty that PayPal has, though they'll probably earn one in time. When it comes to money, people get grouchy fast. Any mistakes, any perceived unfairness, any slight, will be trumpeted from the mountain tops (or sites like paypalsucks.com). It's just the nature of the business. I've never had a problem with PayPal, and we have $10k+ in our account most of the time, and I've been using it since nearly the beginning of its existence. I'm considering dropping merchant services payments altogether on our online shop and taking just PayPal, Google Checkout, and Amazon FPS. I haven't yet talked to enough customers to know whether this is a sane course of action, though.
  - mikeryan 17y ago
    ya not commenting, on Google C/O efficacy just pointing out that Paypal is very much NOT a monopoly with Google in the game.
- wildwood 17y ago
  or any of the varied Amazon payment systems? https://payments.amazon.com/sdui/sdui/business https://payments.amazon.com/sdui/sdui/business
- worldhello 17y ago
  google checkout is not available outside the us and europe i think, same with amazon
  - lux 17y ago
    Exactly. The others aren't even trying to expand to outside of the US, as far as any outsider can tell. It's frustrating to no end being a startup outside the US and having to rely on Paypal or a very slim selection of even crummier merchant providers here (Canada). I've had so many problems with the few providers that do offer service here that I grudgingly stick with Paypal now. Amazon, come on guys, support Canada already! Help us out!

petercooper 17y ago

I've been using PayPal for several transactions a month since 2002 with no problems. They did temporarily hold my account when I went over a certain limit, due to EU money laundering laws, but once I proved my ID, etc, it was back up and running. It's quick, easy, convenient and they're the only company I'm aware of that makes it easy to pass money around from place to place internationally. (That is, there are many local services, but as a Brit who does 80%+ of billing in US dollars, it's pretty much unbeatable.)

ijuhytgjh 17y ago
But if you are a Brit that moves to the US you are screwed. Paypal.com won't let you have an account because you already have a .uk account and the .uk account won't let you have a US address. You can't close the account and use the same email/credit card to create a new account because they are already in the system. Calling support just gets you form letters

randallsquared 17y ago

I don't know that they are successful, if you use actual profit as a criterion. I think eBay only bought them to keep them from going out of business; they're really helpful for eBay, but I don't think they make money.