Earlier this year, PayPal made a splash when it officially relaunched in the UK. While British customers were still perfectly to use PayPal and many of its services in the interim, the company made a concerted effort to adjust to the market post-Brexit and, it seems, cook up some extra incentives for the Brits.
Now bundled in with the dynamic options that PayPal offers British users is a first-of-its-kind loyalty program, as well as cards for customers to use. Clearly hoping to become the provider customers turn to as they turn from typing in card details online, these options landed for all UK users at once.
Anyone who’s been on the PayPal app or website since has been offered a walkthrough and a chance to opt in to all of these new features. Most importantly for businesses, however, is that the move will almost certainly make PayPal a more sought-after payment method, which may require some firms to adjust their offerings.
Already a Popular Payment Method to Accept
PayPal UK relaunched, first made a name for itself as the specialist payment provider for eBay. Through this combination, both surged in the evermore convenient and used space of eCommerce throughout the 00s and early 10s. Eventually, PayPal’s value was seen as being too great to remain restricted as an eBay subsidiary.
Since becoming its own entity in 2015, the eWallet has grown in prominence – particularly in the UK. Now, there are nearly 30 million customers, 24 per cent of whom, PayPal says, will abandon a purchase if their preferred payment method isn’t available. Of course, this isn’t to say that it’s all users’ preference, but it may be for many.
So, more and more brands have incorporated PayPal as an option. Currys, Fat Face, Marks & Spencer, Very, Beer Hawk, Argos, John Lewis, and Sun Bingo are all on board. In the case of the latter, PayPal needs to facilitate two-way transactions. After all, those who play online bingo games might win and then want to withdraw those prizes.
PayPal UK relaunch facilitates this, whether it’s a few-line wins in the 10p bingo rooms or a jackpot from one of the Big Money Rooms. This is an example of a customer being direct with their withdrawal requests. With other vendors, if a refund is issued, it’ll be sent swiftly back to the user’s PayPal account without them incurring a fee.
Another Reason to Get and Use PayPal
It could be argued that PayPal didn’t need to introduce a loyalty program, given the eWallet’s popularity. Even so, they must see a chance to increase transaction volumes and increase the need for merchants to get on board. More people will see the chance to earn through the new PayPal+ loyalty program as a reason to only use PayPal.
They’ve made a strong case out of the gate. Anyone can opt in to the loyalty program and start earning points. Whenever users buy with PayPal or send money abroad – a subtle way to encourage using that new, refined service – they get points. The conversion is simply £10 off a PayPal purchase for every 1,000 points, and there aren’t caps.
As well as PayPal+, the eWallet has entered the card space. For those who find it preferable to pay by card in stores or even online, there’s now a PayPal credit card, and there’s a debit card on the way. So, instead of logging in with the PayPal portal online or activating the app to make a mobile pay, users can revert to their card numbers.
When there are points and rewards to be earned, more people will begin to side with merchants accepting PayPal than others, as their purchases will go further. From a base of 30 million users, quite a wave of online shoppers will now be a bit more swayed by the PayPal logo than a lower price or better website experience.
Time to Explore the PayPal Merchant Offering
The main hurdle for many merchants is that PayPal isn’t a cheap payment provider to offer. The eWallet’s domestic transaction rates, deemed to be standard, range from 1.2 per cent to 2.9 per cent with a fixed fee on top. That fixed fee, when the commercial transaction goes to a UK-registered account, is 1.29%.
PayPal UK relaunch is rather pricey, but its range of payment options makes the service very accessible to millions of British customers. There’s the standard payments approach, but they’ve also been making gains with their “Pay in 3” buy now, pay later service. The platform also made it possible to buy and use crypto, which merchants can opt into.
Then, of course, there’s PayPal UK relaunch credit that operates similarly to a regular credit card. The physical and virtual cards for their credit offering will allow for online and in-store purchases, and much of the above plays into the PayPal+ loyalty scheme. International fees are high for now, but PayPal World looks to make those transactions more efficient.
While an expensive way of accepting a customer’s cash, PayPal UK relaunch is making itself much more appealing to its vast audience. As such, businesses currently not accepting the eWallet should probably weigh up the costs and benefits of doing so.
