Don't let the payment options you offer customers stand in the way of making a sale.

May 17 2019 | Julie Warshaw, PayPal Editorial Staff

It wasn’t long ago that choosing online payment options for small businesses meant deciding which credit cards to accept. And while many people still whip out their credit card to make a purchase, digital payments are becoming more and more popular.
Adding digital payment options to your checkout can be fairly easy; deciding which ones to accept may be a little harder. So how do you choose the right payment options for your business?
Before you dive face-first into the digital payment comparison abyss, take a deep breath and think about your customers. Which payment methods are going to be the most convenient for them? While digital wallets like Apple Pay® or Samsung Pay® may be preferred by some, they only work for customers with a compatible device. Your goal should be to provide checkout options that are convenient for all your customers - no matter what kind of technology they use.
You should also keep in mind that security is the primary concern for most customers, so it’s important to offer payment options that your customers trust. This can be especially true for new businesses where customers may be looking for added assurance that checkout is secure. Letting shoppers check out using a familiar payment method can give them added confidence when buying from your site.
Among PayPal mobile buyers, 63% say they are likely to use PayPal because they don’t want to share personal or financial information and 80% agree they feel more secure using PayPal than sharing their credit or debit card information on a mobile device.1
While putting your customers first can be the key to better conversions, don’t forget about the needs of your business. A payment option with complicated pricing can make record-keeping difficult – even worse, it could potentially hurt your bottom line. You should also consider what kind of technical support will be needed. If a payment method requires ongoing updates and you don’t have regular access to a website developer, that payment method may not be right for your business.
At the end of the day, you want to offer online payment options that meet the needs of your customers and your business. That’s where PayPal Checkout comes in.

A versatile solution: PayPal Checkout.

PayPal Checkout is a one-and-done payment solution that lets your business accept a range of payment types. With a single integration, your checkout will automatically show customers the most relevant payment options– whether it’s PayPal, Venmo2, PayPal Credit3, major credit and debit cards, or (coming soon) a local payment method.  And no matter how someone chooses to pay using PayPal Checkout, they’ll be able to complete their payment without leaving your site.

Help reach more millennial shoppers with Venmo.

You probably know that Venmo is a quick and popular way to send money to friends who use Venmo, but did you know that it can also be used to make purchases?
What sets Venmo apart from similar apps is its social appeal. Venmo has a social feed that lets users share a description of their purchase, either publicly or with friends. It’s like the memo line on a paper check, but with emojis. The social aspect of Venmo has been particularly appealing to millennials, some of whom may check the app just to see what their friends are up to – even when they’re not making a transaction. This means added exposure for your business whenever someone decides to share their purchase, giving you a potential in with this highly coveted demographic. Win-win.

Give customers more buying power with PayPal Credit.

With PayPal Credit, your customers have a chance to buy now and pay over time – all while you get paid upfront, with no consumer credit risk. This flexibility can help boost sales and increase average order sizes.
It can also help your customers – especially when wallets are feeling tight. PayPal Credit gives your customers access to special financing for 6 months on purchases of $99 or more.4 It lets them get what want, when they want it – and spread out the payments over time. This can be helpful to your customers during the holiday season. They simply select the PayPal Credit option at checkout, enter a few pieces of information, accept the terms, and get a decision in seconds. Customers who get approved have instant access to a line of credit that they can use to complete their checkout on your site.
About 53% of PayPal Credit users say would not have made all their purchases if PayPal Credit was not available. 21% of PayPal Credit users say they spent more online because PayPal Credit was available,5 with their transactions being up to 68% larger than non-credit purchases.6

Accept both credit and debit cards.

Of course, not everyone has ditched their actual wallet and gone digital, so you should still accept credit and debit cards at checkout. You may even have payment processing already in place for these transactions, but if you don’t, PayPal Checkout has you covered. Shoppers who would rather pay with a debit or credit card can use PayPal to check out as a guest – without ever leaving your site.

Helping customers convert.

Letting your customers pay the way they want can improve your conversion rates and help reduce cart abandonment.  On average, PayPal customers complete their purchases 88.7% of the time. Compared to other digital wallets like Apple Pay or Samsung Pay, PayPal Checkout conversions average about 60% better.7
You work hard to meet the evolving needs of your customers. Make sure you choose a payment option that works to meet the evolving needs of your business.

The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.
Apple Pay is a registered trademark of Apple Inc.
Samsung Pay is a registered trademark of Samsung Electronics Co., Ltd.
1 PayPal commissioned comScore online survey (of U.S. adults (aged 18+; n= 1172) who own and use a mobile device, and who have browsed or researched products or services online on any device in the prior 6 months. Jan-Mar 2018.
2The ability to accept Venmo as a payment option is currently available with mobile-web checkout only in the US, and only with eligible businesses.
3PayPal Credit is subject to consumer credit approval.
4 Customers check out with PayPal and use PayPal Credit. PayPal Credit is subject to consumer credit approval.  
5Study commissioned by PayPal and conducted by comScore Research. comScore survey administered in Q3 2017 to over 2,100 U.S. adults who have made online purchases.
6As reported in Nielsen’s PayPal Credit Average Order Value Study for activity occurring from April 2015 to March 2016 (small merchants) and October 2015 to March 2016 (midsize merchants), which compared PayPal Credit transactions to credit and debit card transactions on websites that offer PayPal Credit as a payment option or within the PayPal Wallet. Nielsen measured 284890 transactions across 27 mid and small merchants. Copyright Nielsen 2016.
7 Source: comScore online panel, Q4 2017. Analyzed shopping behavior of 1 million US consumers on 20 large merchant sites. Checkout conversion is measured from the point where consumer selects a payment type to completion of purchase.

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Frequently asked questions.

While Amazon does not directly accept PayPal payments, there are workarounds that allow you to use your PayPal account to buy on Amazon. 

To use PayPal as a payment option on Amazon, you can use your PayPal Cash Card or PayPal Business Debit Mastercard.

If you have a Personal account, you can request a PayPal Cash Card, which is a debit card. If you have a Business account, you can apply for the PayPal Business Debit Mastercard.


If your PayPal account has been approved for Dynamic Micropayments (also known as Dynamic Pricing), then PayPal automatically applies either the Micropayments rate or the applicable higher value transaction rate to each traction processed through your account based on whichever rate results in the lowest fees to you for that transaction. Eligible Micropayment transactions consist of PayPal Checkout, Donations, Standard Credit and Debit Card Payments, and Goods and Services Payments. For more information on Dynamic Micropayments rates, go to our Merchant Fees page.

Not all payment types are eligible for Micropayments pricing. 

Example of how Dynamic Micropayment pricing works:  

What is the benefit of dynamic micropayments pricing?
Once enrolled for dynamic micropayments pricing, you’ll receive either the Micropayments rate or the applicable higher value transaction rate for eligible payment types based on whichever is the most favorable rate for the transaction amount. The calculation happens instantly at the time of the transaction. Generally, merchants who have frequent smaller transactions ($26.67 or lower for commercial transactions, and $19.05 for donations transactions) would benefit from dynamic micropayments. 

How will I know if dynamic micropayments pricing is turned on for my PayPal Business Account?
Your enrollment request will take up to 2 business days. Once you start to receive payments, you can check the Activity Download report (available online) and review the fee information. Not all payment types are eligible for micropayments pricing.

Which merchants are eligible for dynamic micropayment pricing? 
Merchants who signed up for a business account directly with PayPal are eligible for dynamic micropayments pricing. This excludes business accounts created through a third-party platform and personal accounts. In addition, merchants already on custom pricing cannot enroll for dynamic micropayments. 

To view all of our current rates, go to our Merchant Fees page.  

Venmo is a social payments service used by millions of people to make and share payments with friends, family, and select approved businesses. It’s similar to PayPal, but is unique in that Venmo allows users to share and like payments and purchases through a social feed. The service is popular with the millennial generation.

  • Users can make payments by linking their bank account, debit/credit card or by using their Venmo balance if they have access to one.
  • Once a bank account is linked, users can easily transfer money in their Venmo account to their bank account.
  • Users can transfer money quickly using a friend’s phone number, email address or username. If a recipient doesn’t have a Venmo account and a payment is sent using their email address or phone number, the recipient can create an account in order to receive the funds. Once they do, users can also find friends automatically by syncing their Facebook account or phonebook.
  • Splitting payments with friends and family like a dinner bill, concert tickets or the cost of a road trip is one of the most popular uses of Venmo.
  • Many Venmo users like to share their payments and purchases on the Venmo social feed with a fun comment. The actual payment amounts are hidden.
  • Find out more about the Venmo checkout experience and additional details

Merchant FAQs

What will my customer see?
If your customer has opted-in to make payments through Venmo, they will be presented with an option to pay with their Venmo account after clicking your PayPal payment button on your mobile.

Please note: Venmo users will receive a Venmo-branded transaction receipt in addition to any receipt you currently provide.

1. Customer selects the PayPal payment button:

2. Venmo payment option is presented:

3. Venmo payment is made:

4. Return to merchant payment confirmation page:

Will I have to change my integration with PayPal to accept Venmo payments?
What are the costs to accept Venmo payments? 
There is no additional cost to accept Venmo. You will pay the same fees for Venmo payments as you do for PayPal payments.
Will Venmo transactions be covered by PayPal's Seller Protection Policy?
Yes, the PayPal Seller Protection Policy will apply to Venmo-funded transactions received through your PayPal account. To learn more about the PayPal Seller Protection Policy eligibility requirements, click here.
Are payments made by Venmo users through my PayPal account subject to the PayPal Purchase Protection Policy?
Venmo payments are covered by the Venmo Authorized Merchant Payment Protection Policy, which generally mirrors the PayPal Purchase Protection Policy, but varies in some places. To learn more, read the Venmo Authorized Merchant Payment Protection policy.
Can my business be promoted through the Venmo app? 
Yes. Venmo users have the option to share purchases in their Venmo social feed. This could include the purchases they make on your site. Note, purchase price won’t be included in their social posts.
Is this available to merchants or consumers outside of the US? 
Currently, Venmo is only accepted within the US and with US merchants. 
Will Venmo payments be available for desktop transactions?
At launch, Venmo payments will only be available for mobile transactions. Desktop support may be available in the future.  
Will Venmo pass the consumer’s shipping addresses to me? 
If your current PayPal integration is set up to receive shipping address, this will not change with the Venmo option.
For more information on Venmo purchases, visit the Venmo Help Center.

What is manual card entry and when can I use it?

Manual card entry allows you to accept card payments from customers who aren’t physically present. This means that you are not allowed to accept card payments from customers by manually entering their card details when the customer is physically present in your store. 

To accept manual card entry, enter your customer’s credit card in the PayPal Zettle app when they check out. This payment option is convenient when you want to secure a booking or charge for remote orders over the phone or online.  

How much does it cost?

The only cost is the payment fee of 3.49% + $0.09 USD. This is slightly higher than our usual payment fee due to the increased security risk inherent in manually registering card details. 

How do I turn on manual card entry?

You can turn on the feature by accessing the menu in your app, tapping Manual card entry and then pressing the activate button. After that, you’ll see the “Manual card entry” option as a payment method in your checkout. 

Why can't I see manual card entry as an option/ who can use manual card entry?

Only sellers who have connected their PayPal Zettle account to a PayPal Business account and have successfully completed a card payment through a Zettle card reader are eligible to use the manual card entry feature.

How will I get paid for manual card entry payments?

You’ll be paid directly into your PayPal account. As a result, money from manual card entry won’t show up in your PayPal Zettle daily deposit email or on the PayPal Zettle deposits page. Manual card entry payments will however be visible in your sales overview and reporting. 

Are manual card entry payments covered by Seller Protection?

Manual card entry payments aren’t covered by Seller Protection at this time.

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