There are hundreds of payment-related companies in each country around the world. Among them, PayPal, the most globalized one, is a leading fintech company with more than 220 million users.

​PayPal provides payment methods related to various websites and shopping malls, such as PayPal Me, Express Checkout, and PayPal Pro, and O2O-related payment companies such as card payment reader PayPal Here , Braintree , and Venmo. We are acquiring and operating them. In this post, we will learn about the PayPal payment system, which is most commonly used when operating a shopping mall.

PayPal

PayPal provides an electronic wallet service that allows you to send money anywhere in the world using your email address. Customers (Shoppers) can make payments on websites or shopping malls through their PayPal accounts and credit cards, and the customer's payment amount is stored as a PayPal Balance in the Merchant's PayPal account and the seller withdraws it to their bank account. This is possible. The reason why overseas sales are currently possible even without an overseas corporation is because there is a global payment service called PayPal. The amount sold in the marketplace has a settlement period of about D+14 or D+30, but in PayPal, the buyer transfers money directly to the seller's PayPal account, so there is no settlement cycle. This is a huge advantage for sellers.

▲ PayPal provides electronic wallet service

PayPal business solutions related to shopping malls

▲ PayPal business solution comparison table

If you run a shopping mall or website as a Korean business, your only option is PayPal Express Checkout (abbreviated as EC). EC supports credit card payments and PayPal balance payments through PayPal. There is a misconception that many people have, but buyers can complete the payment by entering credit card information even if they do not have a PayPal account or have not created an account. EC also supports a mobile-optimized payment environment, and shopping mall builders such as Shopify provide a dynamic checkout function. Dynamic checkout allows customers to pay without moving to the cart page, which also helps improve purchase conversion rates. The shipping address is based on the PayPal shipping address.

▲ PayPal dynamic checkout that can be implemented on Shopify

▲ PayPal dynamic checkout mobile page that can be implemented on Shopify

To use PayPal Express Checkout, your PayPal account must be set to a PayPal Business account . Most people who sell on eBay start by creating a Premier account, but be sure to upgrade to a business account to make shopping mall payments. When adding PayPal to a hosted shopping cart like Shopify , the integration is completed simply by entering the PayPal ID and password without developing an integration or linking the app.

Shopify PayPal Express Checkout Settings

We will link PayPal based on Shopify, a shopping cart commonly used by overseas direct sellers in Korea. It's really simple. After logging in to the Shopify administrator, go to Settings > Payment providers > select PayPal Express Checkout at the top and click Activate.

▲ Click Activate and enter PayPal account information.

▲ Shopify and PayPal Express checkout linkage completed page

▲ PayPal integration with Shopify completed

EC Customer Payment Process

• If the customer does not have a PayPal account: Enter credit card information on the PayPal site and pay
• If the customer has a PayPal account: Click Cart (Purchase) > Click the PayPal button > Log in to the PayPal account and click the Complete Payment button

​If you have a PayPal account, payment can be completed simply without the need to enter a shipping address in the shopping mall. From the shopping mall operator's perspective, this can reduce the number of abandoned carts (payment page abandonment, failed cases) and increase the purchase conversion rate.

▲ Customers complete payment simply by clicking the PayPal button and entering account information.

Shopify payment currency

When using PayPal Express Checkout , you can only pay in the default currency set in your Shopify administrator . Even if the multi-currency function provided by the theme or a third-party app is added to the shopping mall, payments can only be made in the default currency on the actual payment page.

Paypal business settings

After logging in to PayPal, select Profile and Settings > Selling Tools > Credit Card Statement Name (Update) to edit the name displayed on your customer's card statement. It would be a good idea to change it to the site name or brand name to minimize future chargebacks related to Unauthorized Payment due to customer mistakes or misunderstandings.

▲ Change credit card statement name-1

▲ Change credit card statement name -2

Additionally, when a customer opens a PayPal disclaimer or chargeback, payment-related notices or contact information may be provided to the customer first.

▲ Customer support center message settings -1

▲ Customer support center message settings -2

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PayPal is the most used payment method around the world. If you are targeting English-speaking countries (North America, Europe, Australia), PayPal is essential.