To many people in the tech world, PayPal's days as an innovative company are long gone. The company brings up memories of an early frontier in web payments in the mid 2000s.
But for an emerging brand, which often lacks a consumer's trust early on, PayPal is one of the easiest additions that can boost revenue and kickstart customer loyalty. The reasoning is simple: a customer doesn't want their credit card to be misused or hacked, and PayPal provides a level of trust that a new brand simply won't have.
The consumer's trust in PayPal is mostly a result of PayPal's Purchase Protection, which covers buyers by helping with fraud monitoring and dealing with problems with orders. PayPal also has Seller Protection, which uses many of the same tools to ensure seller's aren't getting ripped off either.
Imagine a customer wants to buy something from a brand that is less than a few years old. She goes to the brand's website, adds an item to the cart and then prepares for checkout. But all she sees is a generic credit card form, and is unsure if the brand is trustworthy. The brand might have some of those credit card and fraud protection logos on the page, but those only help so much and are somewhat of a mystery. The brand might have a nice website, but that only goes so far today. There's a good chance she will abandon this purchase because she's unsure if the brand is reputable and if she will receive the product she bought.
But if there's a PayPal checkout button on the form, her concerns evaporate. She trusts PayPal and is able to checkout faster and more securely. This makes a marginal difference to the merchant, who pays a processing fee that is likely similar what Stripe or another credit card processors charges. Either way, even if the PayPal fee is a point or so higher, it's mostly irrelevant because the brand just made a sale it would not have otherwise.
Brands can piggyback on PayPal's global brand, which is strong with consumers. It doesn't really matter what the tech world thinks of PayPal if consumers trust it.
At Gioventu, our contemporary menswear line, 40% of our transactions were processed with PayPal. That's a staggering amount, which really surprised me. But it makes sense. Grailed, the thriving second-hand menswear marketplace, is built entirely on top of PayPal, and touts the Buyer and Seller Protection as an important selling point. In a transaction between two individuals, guarantees on both sides are the foundation of the relationship; PayPal provides this guarantee.
People spend more money and shop more often with brands that they trust. Add PayPal to your site if you haven't already.