Online payment has been an instrumental tool in today’s world, where technology has evolved to greater heights. Many online payment systems are currently available on planet Earth, such as PayPal, Payoneer, Authorized.Net, and Skrill. However, which system can one use? Whether making or receiving payments remains a major question to consumers and merchants. In this context, PayPal and Skrill have been outstanding over the other online payment systems, although they have disadvantages despite significant advantages. In this paper, the disadvantages of PayPal and Skrill and their advantages over other payment systems, and over each other will be discussed.
Although PayPal and Skrill are this era’s outstanding online payment systems, evidence shows that most online business organizations avoid these payment solutions. According to studies from EP Editorial Team, results show that merchants need more trust in these payments system. For example, it is found that PayPal has been tending to consistently lock its account to customers before asking questions. This tendency has been witnessed over decades; thus, PayPal is regarded as inconvenient to merchants.
Apart from trust issues, PayPal needs to offer better customer service. Evidence shows that the process of having customers’ problems solved by customer service is never a walk in the park. PayPal compliance staff and customer service are described as strict in following rules and guidelines, so there is no chance for abstraction or common sense, not even an opportunity to explain circumstances. Studies also show that Skrill, a competitor to PayPal, is no better regarding customer service. Evidence shows that solving problems with it is worse than with PayPal (EP Editorial Team).
However, these payment systems have advantages too. For example, consumers generally prefer PayPal over other payment systems (EP Editorial Team). This is because consumers need to keep their financial data private from merchants. This then helps them to only share their financial information with a single unit instead of several different ones. Evidence shows that customers prioritize cybersecurity and the confidentiality of their information. PayPal ensures cybersecurity for its customers by encrypting personal data such as bank accounts and cards, thus keeping such information private. The advantage of this is that the risks of hacking and data breaching are eliminated. PayPal has an inbuilt system that prevents fraud activity, and in case a transaction lands fraudulent, there is a 100% return of money. This security feature of PayPal is thus an advantage (Sullivan).
Another advantage is that both PayPal and Skrill payment systems are simple to use, so customers don’t need debit or credit cards. These payment systems give the customer an opportunity to receive and make payments even with a regular bank account (EP Editorial Team). Cost is also a major advantage of using PayPal. Evidence shows that PayPal is cost-free. That is, there are no annual contribution fees for being a member, and there are also no processing fees and service charges (Casado-Aranda et al.)
Despite the various advantages of both PayPal and Skrill, an important question about which one to consider arises. Evidence shows that one’s decision on which payment system to use will depend on whether they are the seller or the buyer and the availability of the payment system in a specific location. For example, a buyer would prefer PayPal over Skrill because it allows unlimited multiple currencies in the same account, while Skrill is only for VIP accounts. A merchant would prefer PayPal, too, since it offers services in all languages, thus reaching a wider market (EP Editorial Team).
In conclusion, both PayPal and Skrill are competent online payment systems with simplified transactions, and the choice of the payment system depends on the individual role, whether a consumer or a merchant. I would prefer PayPal if I were a consumer since it offers security to my financial information and is available in all languages. However, If I were a merchant, I would choose both in countries where both payments are available. This is to offer a variety of payment systems to maximize my sales. But in most cases, I would prefer PayPal since it is the most popular among customers.
Works Cited
Aranda, Luis-Alberto C., et al. “A Neuropsychological Study on How Consumers Process Risky and Secure E-payments.” SAGE Journals, vol. 43, no. 1, 2022, https://doi.org/10.1016/j.intmar.2018.03.001.
EP Editorial Team. “PayPal Vs. Skrill (and Why You Probably Need Both).” E-COMMERCE PLATFORMS, 15 Sept. 2021, ecommerce-platforms.com/articles/paypal-vs-skrill-probably-need.
Sullivan O. “3 Major Advantages Of Using PayPal.” Finance Monthly, 10 Mar. 2022, www.finance-monthly.com/2022/03/3-major-advantages-of-using-paypal/.
write