PayPal processes over 4 billion payments every year including a billion mobile payments. Out of the top 100 US online merchants, over 70 accept payments through PayPal. It is the world's most recognized and one of the most widely used payment gateways. It doesn't matter what your business sells, you can accept PayPal payments from all types of consumers. People routinely use it to purchase apps, books, movies, TV programs, games, songs and much more.

Freelancers

Perhaps it's most important benefit is to freelancers. There are estimated to be tens of millions of freelancers worldwide, and many accept payments using PayPal. It is seen as a more cost effective solution when compared to other ewallets. Professionals, web designers, video game developers, app developers, SEO professionals, copywriters, photographers and other freelancers use PayPal as a reliable and fast way to receive payments from their clients.

Money Transfers

PayPal is also used as a general money transfer platform by all types of users - both individuals and businesses. While businesses can use it to accept payments for merchandise or services, they can also transfer money using the service.

Benefits for Business Owners

As a business owner, there are many advantages of using PayPal for processing your online payments.

It is easy to setup an account. PayPal provides all the required codes for integrating the system with your online store.

It provides an element of trust. The service is trusted worldwide and patrons can pay your invoice using a credit card or their own PalPal accounts without ever needing to disclose credit card or other personal information to you. And of course, they offer a mobile card reader and useful apps.

There are no periodic fees. Most small business accounts don't have to pay any monthly (or periodic) fees to PayPal, only small transaction fees.

You get instant access to your receipts. Most PayPal transactions are instantaneous. After a brief membership period you can apply to receive a Business Debit Card. You can then use your debit card against any funds held in your PayPal account. Instant transactions mean instant access. Plus, there are no fees to have or use this card.

You get 1% back. Signature transactions on your Business Debit Card earn 1% back. I sometimes get $20 or more back each month.

It helps with your bookkeeping. If you use their simple invoicing tool you can see your receipts and debits, invoices, transactions and fees, and more, instantly online - all in one place.

It helps you feel more secure. I get an email advising me of every PayPal transaction, instantly. I also have 24/7 phone access to customer service, account balances, etc. Plus you can maintain multiple cards and accounts for business partners, drivers, sales people or even college students.

There are a few drawbacks to PayPal: While you always have instant access to funds via your PayPal account via a debit card or an ATM (subject to your floor limit of course!), but if you transfer funds to your bank it may take 2-3 days. Paypal accounts are not be available in some countries so if you do business overseas use can be limited except bu debit card use. Also, because we never swipe cards our transactions fees are a little high, 2.9% of the transaction plus $0.30. They do have different plans but this was our best fit. You may want to discover all their options before making a choice.

About the Author

George C. Jobel does business coaching, web development and SEO consulting and has been helping clients develop successful online & multimedia marketing since 1995. The author of numerous articles, George taught web development and marketing classes for over a dozen years. You can reach him at his web site, or 603.491.4340.