Many wonder what PayPal is and if it helps them grow their direct sales business. Today, we tell you about the advantages and benefits of using PayPal.

If you want to know what Paypal is, it is an online payment system. Although many people believe that it is a bank or a debit card, it is not. It is a payment method. It means that it “almost” looks like a bank since we can deposit money into our PayPal account and “almost” looks like a debit card since the money can come directly from our bank account. And we can use PayPal to buy on online sites that take Paypal or even pay for your services online or send money to a friend who also has a PayPal account.

In summary, what is Paypal?

Paypal is a payment or money sending method. It's similar to Xoom or Western Union because you can send money in and out of the country. You can also pay your bills as if it were a bank account. And as if this were not enough, it can help you receive payments from your clients with credit cards, debit cards and even with your own Paypal account!! :) Isn't it fabulous?

Let's look in a little more detail at what PayPal is and how it serves us for our direct sales business.

How does Paypal serve me in my Direct Sales Business?

Suppose you sell a couple of quilts to your client who lives in a different city than you. Now that you have a PayPal account, when you charge them you can offer to pay with a credit card, debit card or, if they have one, with their own PayPal account! Wonderful! Especially if you previously asked him to send you a Money Order or he had to go to Western Union to pay you.

The easier you make it for your customers to pay you, the easier your sales will be.

I give you another example. Last time we talked about being able to sell through your Facebook page. One of the payment methods Facebook allows you to use is (you guessed it?) PayPal!

And not to mention if you already have an online site where you sell the products from your catalogs. People will be able to pay directly and securely without having to share their data with you or anyone else!

How PayPal Works

Well, let's imagine that a customer wants to place an order with you from Stefano's catalog for a pair of shoes that she fell in love with. The time has come to charge you. You have a couple of very simple options.

Send them a payment request to their email or simply share the email associated with your Paypal account so they can pay you directly. You do not have to do anything else.

The balance will be added to your account, and with it you can buy things or transfer it to your bank, whatever suits you best.

How to Open a Paypal Account

Now that we know what Paypal is and how it benefits us, let's talk about how to open a PayPal account. It's very simple. We create our account by entering paypal.com, we enter our information and choose how we want to receive the money.

There are two options. You can associate your bank account so that PayPal will deposit the payment money or you can not enter any bank information and request that the funds be sent to your home by check.

Once you have your PayPal account, you can use it. It is associated with the email you have registered. Payments are immediate, there is no need to wait for you to receive the money from a purchase credited to your account.

How does the Buyer Pay me?

It's very easy: the buyer can pay you using their credit or debit card or with their own Paypal account. And this is the best, because anyone can pay us with their card even if they don't have Paypal.

You don't need to register with any bank to have a virtual point of sale or anything. You just indicate the amount and send them an email requesting payment, or if your client has PayPal. Enter your email to send you the money directly.

And the Money… How Do I Use It or Receive It?

Once the customer has paid you, you can leave the money in your Paypal account and use it to buy on other sites that accept Paypal, of which there are many. There are even physical stores that accept payment by Paypal! You can also transfer it to your bank account or ask them to send you a check for the amount you indicate (less than the balance in your account, of course) ;)

The Advantages of Working with PayPal

Of course, the first advantage is being able to offer different payment methods that would be very difficult to process in any other way.

The next thing is that being one of the largest payment companies in the world, as well as well-known and used, people trust Paypal a lot for the security it provides.

Security and trust is precisely one of the main reasons to use Paypal: the security it gives to the buyer will allow us to sell more easily, since we will have a solid payment method that inspires confidence. The buyer does not share their bank details and does not bear commissions of any kind. It is very easy to manage and buy with PayPal.

One of the successes of Paypal has been being able to buy online safely. Many people, before the arrival of this payment method, were somewhat afraid of entering their credit card information on an unknown website or through their computer, which could contain malicious viruses that would steal their number. With Paypal that fear disappears. If we ask ourselves what Paypal is for, we could say that to buy and sell calmly on the Internet without any problems. But it has more advantages that have made Paypal what it is today: the best known.

The Keys to Your Success

Without a doubt, if we ask ourselves what Paypal is and what Paypal is for, we will come to a simple conclusion after a little information: it is to pay comfortably and safely online, and to receive payments in a direct and easy way. As a buyer we have these advantages:

• Opening an account is simple.
• No banking details are shared with anyone.
• Being one of the most famous payment processors, almost all online sales websites allow you to pay with it.
• If we do not have a balance, purchases are charged to the card or bank account.
• You can send money to friends and family, also receive it.
• Our email address is our payment account.

And as a seller, in addition to the advantages for the buyer already being an added value for your online store, it also brings you benefits:

• Its payment platform is very easy to integrate into any website, even Facebook is already contemplated.
• Being so famous, almost all e-commerce sites support it directly.
• You receive the money instantly, there is no security wait as in other methods.
• You can request payment to your bank account or by check if you wish.
• You can request payments by email.

The advantages as a seller also include offering a greater number of payment methods and the trust it generates in the buyer, which makes sales work easier.

How Much Does It Cost to Work with PayPal?

Paypal is not free. Depending on the type of transaction and account, commissions range between 1.9% and 3.4% of the amount plus a fixed amount (we always advise you to see the Paypal rates page for updated information).

In addition, their exchange rate is slightly high, so if they pay you in another currency you will notice how the commissions are somewhat painful. However, they are by no means the highest in the sector and are acceptable due to the advantages you obtain.

Verdict. What is Paypal for?

There is no doubt: offering Paypal in our online store, whether on Facebook, the website, or even private services or if you do not want to carry money with you, is a luxury since we can offer a multitude of payment methods with the security and peace of mind that offers the system. Give it a chance and check it out.

And now a little humor. ;)