Accepting PayPal™: The Merchant Experience
In any business, getting a leg up on the competition is not only a benefit, it is often a necessity.
With the rise of mobile banking and mobile payments, and with innovations such as near-field communications (NFC), consumers are purchasing more using mobile devices and merchants today have more choices than ever to offer their clients in terms of paying for services – whether your business is a restaurant, a movie theater, a kiosk, a bar, coffee shop, food truck or otherwise.
One of the online payment services with the greatest reach is PayPal™, now offered in more than 203 countries and according to eBay, in 2013 PayPal processed more than $20 billion in transactions made on mobile devices globally.
So, why would a merchant be interested in accepting PayPal™ at their point of sale (POS)?
- Security. A recent survey showed that PayPal™ has lower fraud rates than most credit cards. PayPal™ gives customers increased security and peace of mind — customers don’t have to take out their wallets or share any financial information with the merchant, instead using a login and password system on their mobile devices.
- Order ahead. One feature of having PayPal™ integrated into a POS system is that merchants have the ability to allow customers to order and pay ahead of time. This means a merchant can communicate pick-up times with a kitchen or barista to plan ahead for busy periods, reducing wait times for customers.
- Low rates. Another benefit to merchants is PayPal’s low transaction fee. Credit card company charges vary by card, and include fees for setup, gateway, and monthly use, whereas PayPal™ charges a simple, low, flat-rate fee per transaction: US Check-in transactions cost 2.7% per transaction. Flat transaction fees means merchants don’t need to worry about processing fees cutting into their business. Plus, merchants save money with PayPal™ by having no monthly fees.
Not surprising, these benefits have led to a number of big name brick-and-mortar stores to begin accepting PayPal™ at their physical retail stores including Home Depot, Barnes and Noble, Toys ‘R Us, JCPenney, Foot Locker, Office Depot, Abercrombie & Fitch, Aeropostale, American Eagle Outfitters, Jamba Juice and many more.
Beyond these benefits, merchants can also offer a better experience to their customers and improve loyalty. First, the photos of customers checked-in with PayPal™ appear on the merchant’s screen so merchants can easily identify the customer and greet them by name, all while speeding up the transaction.
Using PayPal™ is easy to use and a great experience for merchants too. Because transactions can be completed ahead of time, receipts can be pre-printed, and all that is required of the consumer is to complete the order and payment on their mobile device. Plus, PayPal™ can be used to offer deals, coupons or other information about the merchant’s services which incentivizes new customers and increases foot traffic to your store.
Revel Systems has integrated PayPal™ into its iPad POS system in order to bring these merchant benefits and experiences to small businesses everywhere. Set-up is easy and with 110 million active PayPal™ accounts globally, merchants can be discovered by millions of PayPal customers within the PayPal app. Revel’s POS system allows customers to check in at your store as well as order ahead, both of which enables them to securely pay in-store. Completing the transaction is then as easy as touching a button in the top left corner and finding the appropriate customer from the drop down list.