Mobile Apps

PayPal Payment Processing Solutions: A Comparison

For years, PayPal has been the go-to method for online transactions and the preferred payment method for buyers everywhere—and there are reasons for this.

Partly, it’s because the payment system is one of the more optimized systems for mobile — thanks to its One Touch feature — which in turn can drive more conversions for mCommerce stores that rely on mobile shoppers.

But mainly, however, this is due to the fact that PayPal is a cost-effective, widely accessible payment method with a huge variety of options to choose from – options which can be complicated for new users. In case you’re still wondering about the differences between each of the types of PayPal payment processing solutions, today in SimiCart article, we’ll be clearing up some of them for you:

PayPal Standard

PayPal Standard

Available in almost everywhere in the world, PayPal Standard is a popular choice between merchants because of its simplicity and cost-friendly nature. It comes without any setup, terminal fees or long term commitments; and the only account that merchants would need to set-up is a business account.

But still, there’s one major limitation of PayPal Standard that makes merchants hesitant when considering it as a viable payment option — the checkout flow. Via PayPal Standard, all transaction processes are to be redirected to the PayPal main website and processed on which; as a result, stores that use PayPal Standard can see themselves losing customers due to the non-linear checkout process and necessary-but-outdated steps such as the IPN – “Instant Payment Notification” which is used to notify stores if a payment was completed.

PayPal Express

Without almost none of the downsides of PayPal Standard, PayPal Express is a recent and more modern payment option for merchants who want a more streamlined checkout flow. Payment Express uses API to give merchants more flexibility in the checkout stage, reducing the unnecessary hiccups of PayPal Standard.

How PayPal Express checkout works

Compared to PayPal Standard, PayPal Express is better at these aspects:

  • Supports for direct payments: Customers can purchase as a guest using their credit cards.
  • Delays: Thanks to modern APIs, PayPal Express doesn’t need IPNs to tell if a payment was made, which in turn reduces the outdated delays previously accompanied by PayPal Standard.

In 2020, there’s little to no reason to go with PayPal Standard anymore as both payment processing solutions are priced at the same price-point.

PayPal by Braintree

PayPal by Braintree

A more recent and emerging method for payment processing is PayPal by Braintree. The payment processing itself is an elegant interface that supports uninterrupted checkout—which means that customers can pay with their PayPal account without ever having to leave your storefront. The solution itself is a pretty neat combination of credit card processing and PayPal Express Checkout that is worth considering over if your eCommerce platform supports it.

Recommended reading: Magento User Guide: Braintree Configuration 

PayPal Pro

PayPal Pro

For a monthly fee of $30, PayPal Pro is the one-size-fits-all solution for merchants who want more freedom and customizability for their stores. It’s due to this customizability that merchants who utilize PayPal Pro often see their stores driving improved conversion rates due to the check-out page being one consistent experience from the beginning to the end of the buyer’s journey.

Which one is for you?

Obviously, not everyone’s needs are the same, which is why some considerations are still needed to choose the best payment process option for your store. For an easier time picking out between these options, here’s a comparison table for your needs:

PayPal products comparison table
Link to image here

Looking through the table, we can see that PayPal Pro seems like the one-size-fits-all approach for stores; however, solutions such as PayPal Express and PayPal by Braintree are still considerably more favorable between merchants as it’s a cost-effective, quick and easy way to implement into their stores. Yes, you can lose a little bit of customization freedom which might affect your conversion rates, but it’s an option worth considering over if cost-saving is what you’re after.

Luke Vu

A content writer with a passion for the English language.

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