New PayPal Checkout - with lower fees in some countries

[Alk]

In the last few days, I have received a couple of emails from PayPal about a new "PayPal Checkout". Upon investigation, it has been around for a little while and it would seem that this is their replacement for "PayPal Payments Standard".

As an incentive for me to start using it, PayPal is now offering lower fees via PayPal Checkout of 1.2% + 0.30p, compared to the current rate of 2.9% + 0.30p through PayPal Payments Standard. However, these lower fees are currently only available to the UK and some other countries (France, Spain, Ireland and Greece are countries that I checked, which get lower fees, but the US does not get lower fees). This is a considerable reduction in fees for card payments (up to monthly sales of £50,000) and finally makes PayPal competitive with most other merchants.

Here are details about the new PayPal Checkout: https://www.paypal.com/merchantapps/appcenter/acceptpayments/checkout?locale.x=en_GB&country.x=GB

I'm writing because I hope that Blesta can look to move to the new PayPal Checkout, because of the reduced fees. Also, I am wondering if eventually in years to come, PayPal may turn off "PayPal Payments Standard". Hopefully PayPal will also lower the fees on the PayPal Checkout in the US, as they encourage uptake, so that you folks can also benefit.

From looking, I believe that Blesta will be wanting the "Standard integration"; but to check for yourselves, here is a comparison between "Standard" and "Advanced" (in their documentation, they have now switched from calling it "standard integration" to calling it "Standard payments", which could easily get confused with the old "PayPal Payments Standard"!): https://developer.paypal.com/docs/business/checkout/

and here is how to setup "Standard payments": https://developer.paypal.com/docs/business/checkout/set-up-standard-payments/

I believe the way that the new PayPal Checkout works is that the customer doesn't leave your website, but instead a new window pops up with PayPal in it, for the customer to login to PayPal (if they have an account), checkout of PayPal and then the process is completed on your website. This is best shown via this video: https://youtu.be/UEJHSPM-Qiw?t=1269. If you have used eBay and checked out with PayPal, they you will have used the new PayPal Checkout (at least in the UK).

Firstly, would it be technically possible for Blesta to change to the PayPal Checkout?

If so, would it be something to consider placing on the roadmap now or wait until the US also gets reduced fees, please?

Thank you very much.

[Paul]

2 hours ago, Alk said:

Firstly, would it be technically possible for Blesta to change to the PayPal Checkout?

Thanks for the detailed post. If we implement PayPal Checkout, it would be as a new gateway and wouldn't directly replace PayPal Payments Standard. Users would be able to decide which to install and use. Whether it's technically possible will require a little more research and detailed review of the API documentation.

It looks like I created a task recently so we could look into this, per CORE-4084.

[Alk]

Thank you very much Paul, that makes sense. I'm sorry, I didn't think to search your dev site. The youtube video that I linked to may prove helpful in your research.

Thank you for looking into it, much appreciated.

[Blesta Addons]

any ETA for that?

[Saturn]

I can say from my own experience in the UK market, a better way to save money on PayPal commissions is NOT to use PayPal checkout.

A better way is to get a wise.com account which includes UK Bank account details, as a high percentage of people in the UK will pay to

the UK Bank account with zero commissions involved.

Secondly PayPal never kept their promise of the lower 1.2% rate. After I implemented PayPal checkout in WHMCS there was not 1 single

payment in 3 months where PayPal did not continue to charge the higher rate. After I inquired they clarified that in practice the lower rate

would only apply to guest checkout payments where card details were entered. If a person used their PayPal account with a card as the

payment source the lower rate would not apply.

Thirdly due to the shopping cart process being changed so that people got sent to PayPal before even seeing a choice of paying by Internet

Banking, or new customers filling in their details, the commissions I was paying to PayPal actually INCREASED, and I lost a percentage of new

customers / business.

[Saturn]

"However, these lower fees are currently only available to the UK and some other countries (France, Spain, Ireland and Greece are countries that I checked, which get lower fees, but the US does not get lower fees)."

Thats a 4th. reason NOT to use PayPal checkout. How can PayPal be trusted not to increase rates in the future.

Stripe has lower rates than PayPal, and better integration - at least in my experience with WHMCS.

[Alk]

Thank you for your feedback Saturn, very interesting and much appreciated. I note that PayPal has in the last few weeks announced a fee hike for US customers. It is probably only a matter of time before they do the same for other markets also.

I have been considering swapping to Square.

[Chout1941]

I have checked out the new pay-pal checkout https://www.paypal.com/merchantapps/appcenter/acceptpayments/...  Having worked in the UK market, I can attest that the best way to save on PayPal commissions is to avoid using the PayPal checkout service.It is preferable to open a wise.com account which includes UK Bank account details, as a majority of people in the UK will pay.There are no commissions involved in the UK bank account. Secondly, PayPal failed to keep their promise of a lower 1.2% rate. Once I integrated PayPal checkout into WHMCS, there was not a single complaint Payments made in 3 months in which PayPal did not continue to charge the higher rate. In response to my inquiry, they clarified that in practice, the lower rate would be charged.

 

[Alk]

6 hours ago, Chout1941 said:

Secondly, PayPal failed to keep their promise of a lower 1.2% rate. Once I integrated PayPal checkout into WHMCS, there was not a single complaint Payments made in 3 months in which PayPal did not continue to charge the higher rate. In response to my inquiry, they clarified that in practice, the lower rate would be charged.

 

That is very useful feedback - thank you. When you say that PayPal said that in practice, the lower rate would be charged - what did they mean? as you were obviously not seeing this when you examined your individual transactions.