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Watch Out PayPal, here comes Paymate

May 13, 2009

PayPal is practically a household word across many parts of the globe.  It is no secret that PayPal showed such early promise as a means of sending and receiving payment for eBay auctions, that eBay eventually bought them out.


PayPal has some real advantages and among them are strong integration with eBay, guaranteed protection of funds, and ease of installation as a shopping cart on an eCommerce website.  Yet there are also some disadvantages.  One is that once a business increases its sales volume and needs a business account with PayPal, fees make the service, according to many of my eCommerce clients, a profit killer.  Also, when a buyer pays a seller using PayPal, the funds are held by PayPal for 3-4 business days and only move when the seller manually makes a request.


Paymate, a company from Australia, was also an early eBay player along with PayPal and was simply one of these services that went away, or at least behind the scenes, when PayPal was purchased by eBay.  But, Paymate is now back and was recently accepted as a payment method for eBay users.  Perhaps someone was afraid of being called a monopoly?


With Paymate, when someone buys from a seller (whether on eBay or a seller's website) the funds go directly into the seller's bank account, eliminating the annoying delay that PayPal causes.


Paymate also claims to have a hand up on reducing fraudulent chargebacks.  That's a big claim so we'll see.


A major question for me is how easy-to-use is the Paymate shopping cart system for the non-techie among us?  At first glance it looks much more complicated than the PayPal system but I plan to test it this summer some time.


And yet another is will Paymate be used enough to gain acceptance among sellers?  This latter question is critical for auctions.  Once in a while I run across an auction that accepts a method of payment I have not heard of.  Unless buyers are signed up and using it, sellers will not accept it, even though both services allow a seller to take payments from a buyer whether or not the buyer has a PayPal or Paymate account.  In this situation, the buyer simply plugs in a credit card for payment.


To visit the Paymate site click HERE.


Please post comments or questions about Paymate for fellow web merchants in Wyoming to read and learn from.


Mark Atkinson

Tags: Online Sales
Category: Ecommerce

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