I sell a software production online. The purchase page has a simple credit card payment form, and off the side is a small "PayPal" button an an alternative payment method.
Despite the fact that the PayPal button is tiny compared to the credit card form, a full 2/3 of customers use PayPal to complete the purchase.
That's why people use PayPal, because a large percentage of customers prefer it over credit card payments.
Also, I prefer PayPal disputes because they don't charge a chargeback fee like credit cards.
For me, it's not that I prefer PayPal, it's that I don't want to give my credit card details to a business if I'm not sure they can keep it reasonably secure.
And the fewer places I have my card the better. You might get the same results with Amazon Payments, unless you have an international audience.
> For me, it's not that I prefer PayPal, it's that I don't want to give my credit card details to a business if I'm not sure they can keep it reasonably secure.
This is exactly why I use PayPal. I would far rather use a more reputable interface system, but I am NOT keen on handing my CC info out to every shop online.
First you have to figure out how to use the webpage / app to get the virtual credit card number. Once you know, you still have to log into a separate service and click a few buttons. With PayPal or Amazon Payments you just click your password manager's button to log you in right in the checkout process on the same webpage.
Some banks will issue one-time use numbers for your cards, limited to a certain transaction amount and then they're gone. A pretty cool idea, but until they have an app that generates these numbers at the push of a button nobody really uses them. Too much of a hassle.
Despite the fact that the PayPal button is tiny compared to the credit card form, a full 2/3 of customers use PayPal to complete the purchase.
That's why people use PayPal, because a large percentage of customers prefer it over credit card payments.
Also, I prefer PayPal disputes because they don't charge a chargeback fee like credit cards.