PayPal Business: transparent pricing reveals a transparent rip-off
Most people are familiar with PayPal. The company offers a number of
solutions for SME’s (small and medium enterprises), including accepting
payments, access to funding and making payments.
But the question is whether Paypal offers a good deal for businesses?
On closer inspection PayPal works well for those sending money to friends
or family with the promise of free transfers, but beyond this fees and
charges ramp up aggressively.
Is your core business selling online items? PayPal will charge you 2.9% of
the transaction total and a fixed fee for the privilege of using their
Given the global nature of the business landscape and deeply integrated
global supply and service chains, the majority of SME’s require some level
of currency conversion and access to cross-border payments.
This is where PayPal stands out from the pack – and not in a particularly
Receiving money? They’ll charge you for that. Not a large amount, but
they take a little slice before you receive your money.
Sending money? That will cost you up to 2% of the transaction volume in
And if we were to talk about converting currency? PayPal charge 2.5%
above market rate to convert out of GBP. To make matters worse, if you
need to convert out of your non-local currency, that will cost you between
3.75% and 4% above the market rate. Ouch!
When compared against the VertoFX Solution, let’s say one needs to
convert £10,000 and send in $ with the market rate at 1.25, the difference
Using PayPal in this scenario is nearly $500 more expensive. If GBP is not the local currency and the same transaction was required:
The cost ramps up to nearly $650, a significant amount of money for a single transfer transaction.
The better commercial decision is to use a platform that removes fees and inexplicably high spreads.
VertoFX is here to simplify the process, without the costs and give control back to businesses to find the right rate.
Our Platform, your rules!
We have created a B2B FX and payment marketplace, helping UK businesses trade internationally to gain access to cheaper, better and seamless FX and payment solutions.
Some of the benefits of our solutions include:
- A true B2B FX marketplace, with 39 currencies - Businesses can make payments to 180+ countries - Companies can determine their FX rates via our state of the art “exchange later” solution - Our solutions are built for businesses, therefore, can handle high volume transactions at no extra costs - Zero fees on all payments.