Partnering up is one of the best things you can do in business, and most times it works amazingly. However, when it comes to payments, most people seem to freeze a little. It’s all a series of how much, when, and what platform to use. The most popular question is “can you pay your business partners through PayPal?”
PayPal is a good choice in general, but it has its advantages and disadvantages, so let’s start with that.
Advantages of PayPal
This is probably the biggest advantage of PayPal. You are not only limited to the online wallet, but you can also use credit cards for payments. This makes everything a lot easier than using a regular home banking app, as everything you need is in that dashboard.
Easy funds management
As I mentioned, you can see all your funds in the PayPal dashboard, which is awesome. You can fund your account or withdraw money at any time to your personal of business bank account.
Even now, most people are reticent when it comes to online payments, and PayPal payments seem a lot more secure than bank transfers — and this is not necessarily wrong. Your customers don’t have to deal with the complicated home banking apps, and writing down an email address is a lot more relaxing than a 16 digit IBAN along with swift codes and full names.
Integrations with multiple platforms
PayPal is working towards integrating its services with as many platforms as possible. This is without a doubt very convenient, and bringing more and more users to the platform. Nowadays, most online businesses rely exclusively on PayPal for payments without looking at other options.
Even though it is a good option, PayPal also has a side you don’t get to see in its marketing strategy.
Disadvantages of PayPal
Whenever you make a transaction, you need to pay a fee to PayPal. Even though it’s not big, it is a little inconvenient, especially since it’s advertised mostly as free. Whenever someone pays for a product or you send money to your bank account, the service fee shows up. It’s usually procentual, and you can pay up to 10% per transaction in fees.
Strict rules and blocked accounts
Many people found themselves with blocked accounts and frozen funds with PalPal. Of course, this system is here to protect us all from fraud, but it will trigger unexpectedly with some transactions. In general, it’s freelancers and dropshippers with these kinds of problems. If the income is not consistent, your entire activity may be frozen.
Long verification process
Before you start withdrawing funds to your account, you need to verify it. This involves sending certain documents, such as ID, bank statements, proof of the established business and so on. This is quite inconvenient, and you’ll only be required to verify your account the moment you start using it — you won’t be able to withdraw your money otherwise.
Whenever you have a problem of any kind, you can reach out to PayPal’s customer support. However, the response may be either slow or incomplete, and in case of a dispute, it’s usually the buyer who wins, regardless of what really happened.
What is the Best Method to Pay Your Business Partners?
The best method is definitely CollabPay. It allows you to send instant and automatic payments to any contributors, and it is seamlessly integrated with the most important eCommerce platforms.
It’s a new step towards business automation, and the one you need to take for your business too. You get rid of all the annoying commissions and hidden fees, and you get to spend more time doing the things that really matter in life.