Discuss Home · Bootstrapped Podcast · Scribbleton Personal Wiki · HelpSpot Customer Service Software · Thermostat NPS

Is PayPal unprofessional for B2B?


#1

Scenario: I’m about to launch soon with software for being sold business to business. I have both PayPal and FastSpring accounts. I’m tossing up whether I just use PayPal on my website, or if I should solely use FastSpring with credit cards and purchase orders, and other payment methods; but without PayPal being an option.

I’m leaning towards FastSpring for this, as it seems to me to be the more professional approach. But two issues bother me: I’m Australian, and they don’t accept AUD only (I have to sell in USD too); and to get my payments from them I have to transfer it to my PayPal account, which means I lose money on their commission, and then again lose commission when withdrawing the money from PayPal.

With PayPal alone, I can advertise in AUD only and only have one commission to bear. But what’s the perception of PayPal when it comes to businesses (and sole proprietors, etc) buying? Does it make me look amateur?

In other words, has anyone here used PayPal only for B2B, and did it cause any issues from your buyers?


#2

Just some quick thoughts…
You absolutely should accept USD and/or EUR payments and show USD/EUR prices. Most people will have at least a rough idea how much a USD/EUR price is in their local currency. AUD? I think not!

PayPal-only is limiting for B2B. Some people will definitely perceive that as unprofessional. I would be worried if I get a proper invoice then. FastSpring (or Digital River, or Avangate/2Checkout) is much better.

Still, offering PayPal for payment is a benefit. Some small businesses actually prefer that. I would rather set that up via FastSpring than standalone. Less work for you, more trust for buyers.


#3

Last I used it, if you have a PayPal business account (https://www.paypal.com/us/webapps/mpp/merchant) you can use their api to take credit card payments on your website without the user ever seeing PayPal or even knowing you use PayPal. And regular PayPal payments can still be sent the usual way as well if the customer wants to. I did this years ago and it worked great. An added benefit is the cheaper fees compared to other payment processors.

P.S. Right now I’m using FastSpring (mostly because of the convenience of them handling most of the order process) and they are great as well.


#4

The more payment options you offer the better.

PayPal by itself is quite limiting.

Something like FastSpring would be a great choice for B2B. It provides a magnitude of payment options plus automatically supports some regional and more obscure payment methods.