Can Shopify Payout to PayPal?
Do you use Shopify? Or are you looking to sell online and looking at Shopify? How do you take in payments?
Based in Ottawa, Canada, Shopify is one of the most preferred e-commerce sites by store owners. Wondering about the payment options you can opt for with Shopify or if PayPal is one of the getaways for payment? Let us find out more about the payment options with Shopify.
Using PayPal on Shopify
Shopify has several payment gateways like Stripe, 2Checkout, Authorize. You can also add PayPal as a payment gateway because of its popularity and customer reliability. Shopify even has its payment gateway, Shopify Payment. PayPal is a default provides in Shopify, so you can activate your PayPal account as soon as you sign up.
There a lot of benefits of using PayPal for Shopify; for starters, PayPal is easy, simple, and secure to use. Also, it has developed trust among people. The main advantage with PayPal is you can make payments through any medium, be it credit cards, bank accounts, buyer credit, or your PayPal account balances. You get to choose the mode of payment. Since it is very flexible, it has a higher chance of increasing your sales rate and yield higher conversions.
This is because PayPal is one of the largest service providers globally. There are 227 million people that use PayPal as a payment media. Just like any other payment gateway, PayPal also has fees associated with it. You will have to consider this while processing your pricing and overall business. This means that with PayPal, you won’t have to pay the transaction fees every item you buy, but you only pay once.
What can you use PayPal for?
With Shopify, it is easy to make a transaction via PayPal. If a customer orders an item and pays using PayPal, you will directly receive the funds in your PayPal merchant account. If a customer requests for refund, you can use your PayPal account for processing the returns. Though not automatically, the customer will directly receive their money back. This allows you to manage your funds in case of a refund effectively is requested.
Other than that, you can even use PayPal to pay for your Shopify bills, which includes your monthly plan fee and any apps that you might have signed in. If you have just started a Shopify store, you can select PayPal as your billing method. If you already have a Shopify store, then you can get the benefit from PayPal by changing the payment settings of your account. The payment will be automatically be taken from your account on the established billing date, so make sure you have enough credit in your account.
Another benefit that you can avail is, PayPal allows buyer credit for its customers in the United Kingdom and the United States. You do not need to set it up, and it’s standard when you enable PayPal as a mode of payment.
PayPal cost and fees
You can use PayPal on your Shopify store for free, and no additional charges will be applied for you. But instead, you have to pay a transaction fee and fixed fee every time a customer makes a purchase using this payment method. The only way you can avail of this is by using Shopify’s in-house payment method. But this is not available in all countries.
The PayPal transaction fees for a fixed range depending on your plan are:-
- Shopify Basic Plan: $29 per month with a 0.29 % transaction fee and $0.30 fixed fee
- Shopify Plan: $70 per month with a 2.6% transaction fee and $0.30 fixed fee
- Advanced Shopify fee: $299 per month with 2.4% transaction fee and $0.30 fixed fee
As you can see, with the increase in the plan, your transaction fee decreases in simple words, the more monthly expenses, you pay, the payment will be required.
How to setup PayPal
PayPal is one of the trusted service providers in Shopify, and once you open a store, you will be provided with PayPal express Checkout account with the email you used to sign up for your store.
Before you start collecting payments for paying through PayPal, you must first have your own PayPal business account. This straightforward and easy task and requires a few clicks of the button, and your account is set.
If you have just started your store, opting for PayPal as a mode of payment can be beneficial for you as well as the customers. Since PayPal has a broad base and is easy and secure to use. It even developed trust over the years, and customers feel safe while making payment via PayPal.
How do You Link the Two?
The steps to link your PayPal account to your Shopify store are below.
- Log in to your Shopify admin panel.
- Click Settings.
- Click Payments.
- Select PayPal Express Checkout within the PayPal module.
- Click Activate.
- Once directed to a PayPal login page, log in to your PayPal accountand click I Give Permission.
- Click Back to Shopify.
- Under Payment Authorization, select:
- Automatically capturepayments for orders (Immediate Sale).
- Manually capture payment for orders(Authorize only).
- Click Save.
You can use these easy navigation steps to add PayPal as a mode of payment gateway. The best getaway option can be PayPal because it is a household recognized name.
Making payments via PayPal is very quick and easy. Shopify does not store credit card information; hence it increases the sensitivity. It is efficient and easy to use. PayPal has reached in over 200 countries and allows you to interchange between 25 different currencies. Also, money can be easily converted into local currency without additional charges.
The Final Verdict
Using PayPal can prove too beneficial to both the customers as well as the suppliers. Ultimately you want to make the customer experience easy and convenient. You can increase productivity and improve the sales of your Shopify store.
PayPal can be an easy and secure way of making payments because of its broad base and the trust it has gained over the years. This way, you can increase the customer and buyer relationship, and it will also help in keeping your funds safe.