Need advice about which tool to choose?Ask the StackShare community!
PayPal vs Payola: What are the differences?
Introduction
PayPal and Payola are both online payment systems that provide users with the ability to send and receive money electronically. However, there are key differences between the two platforms that are important to understand. In this article, we will explore the main differences between PayPal and Payola.
Transaction Fees: One of the main differences between PayPal and Payola is the transaction fees that are charged for each payment. PayPal charges a fee based on the amount being transferred, ranging from 2.9% to 4.4% plus a fixed fee. Payola, on the other hand, offers a fixed transaction fee, regardless of the payment amount. This means that Payola may be more cost-effective for larger transactions, while PayPal may be more suitable for smaller payments.
Ease of Use: While both PayPal and Payola are designed to be user-friendly, there are some differences in terms of ease of use. PayPal has been in the market for a longer time and has a more established user interface, making it easy for users to navigate and understand. Payola, on the other hand, may have a steeper learning curve for new users due to its relative newness in the market.
International Support: PayPal has a wider reach when it comes to international transactions. It supports payments in multiple currencies and is accepted by merchants around the world. Payola, on the other hand, may have limited international support, depending on the country or region. This means that PayPal may be a better option for individuals or businesses that frequently engage in international transactions.
Compatibility: Another difference between PayPal and Payola is the compatibility with different e-commerce platforms. PayPal integrates with a wide range of popular e-commerce platforms, making it easy for merchants to accept payments on their websites. Payola, on the other hand, may have limited integration options, depending on the platform. This means that merchants using certain e-commerce platforms may need to consider PayPal as a more compatible option.
Wallet Features: PayPal offers additional features such as a digital wallet, which allows users to store their payment information securely for faster and more convenient transactions. Payola, on the other hand, may focus more on providing a streamlined payment process without additional wallet features. This means that individuals who prefer the convenience of a digital wallet may find PayPal more suitable for their needs.
Seller Protection: PayPal offers certain seller protection policies, which are designed to protect sellers from fraudulent transactions or disputes. Payola may have different or limited seller protection policies in place, which means that sellers may need to carefully evaluate the level of protection offered by each platform before deciding which one to use.
**In Summary, PayPal and Payola differ in terms of transaction fees, ease of use, international support, compatibility with e-commerce platforms, wallet features, and seller protection policies. Understanding these differences can help individuals and businesses make an informed decision on which platform best suits their needs.
Hi Folks,
I represent Showwcase, which is a network built for coders.
We're introducing a paywall for content creators on the platform to start accepting payments from their Followers for premium and unique content over and above the general free content. We are internally considering either Stripe or PayPal to handle this for us.
If we take the pricing out of the debate, what's the go-to choice when choosing which to integrate? Our current standpoint is that Paypal has wider consumer adoption, and since most creators are individuals, it makes sense to just use Paypal because they already have an account. However, our business uses Stripe, and so it makes it easier if both the platform (Showwcase) and creators to be on the Stripe platform. That being said, if creators don't already have an account, they will need to sign up with Stripe on the spot, which is a friction point.
I would like to hear the pros and cons in developer environments as well as any other things we might not know.
I prefer Stripe for developers' ease of integration and PayPal for providing the simplest user experience (i.e., improved revenue.) In my experience, neither platform requires a user register to pay via credit card. However, as noted, many people have a PayPal account, which allows quick and easy payments through a "more" trusted name.
I used Stripe and Paypal and settled on Paypal for the customer. However, the PayPal web hook back end is a complete mess (at least in PHP). Unless they have improved very recently, PayPal web hook integration is poorly documented and barely supported with bits and pieces of important code on GitHub and elsewhere. I can't speak for other languages. But given the popularity of Paypal (i.e., improved revenue), I decided to keep using Paypal after I got the web hook integration worked out.
PayPal is a dinosaur and a nightmare to work with, both in terms of API as well as on the business side. We support both because our A/B tests showed a material increase in conversions by offering both, but I would drop PayPal in a heartbeat if I could. Stripe is a joy to work with.
Stripe is strong because of their security. It is difficult for the programmer to install it, and in my case was impossible since my hosting provider did not have up-to-date software that it requires. I had to use another program on top of it as the shopping cart instead of using Stripe's shopping cart. But Stripe integrates with everything if you can get it to install, and is stable.
The big reason to go with PayPal is the 6 months same as cash or multiple payments over weeks for your clients. Some clients need this and you will lose them without PayPal. PayPal may change their policies, so in my opinion, PayPal is not as stable as Stripe. Some clients refuse or can't use PayPal, where Stripe is available to everyone with a credit card.
In summary, I set up both for my clients. And I used Zoho for everything else - shopping cart, accounting, CRM, banking, etc. It integrates with both Stripe and PayPal and pretty much anything else you use.
Be sure to read the Terms of both Stripe and PayPal, and I think that will help you with your decision.
We use GoCardless to simplify the way clients and partners pay for our services. What intrigued us is the quick and easy ACH feature that gives our clients the option to log in with their bank account and shoot the funds directly to our account. The fee, compared to Stripe is less. Stripe and PayPal charge 2.9% + 30c and Stripe also forces the client to enter in all of their payment details manually and then if the payment doesn't work, the client has to try all over again. GoCardless charges 1% + 25c which is much more reasonable dealing with the large projects that we are currently working on.
We integrate GoCardless with Xero to easily send out quick invoices, receive the funds and track all revenue in one place.
Pros of Payola
Pros of PayPal
- Most known service196
- Consumers know it135
- It's available for many countries113
- Easy70
- Best way to get paid outside US54
- Most widely used payment processor35
- Express Checkout25
- Consumers trust it16
- Flexible and secure15
- Digital Goods for Express Checkout6
Sign up to add or upvote prosMake informed product decisions
Cons of Payola
Cons of PayPal
- Not well written recurring payment api1
- Less countries supported1
- Harder to get started with1
