2Checkout vs PayPal

January 14, 2024 | Author: Sandeep Sharma
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2Checkout
Accept Credit Cards, PayPal, and Debit Cards. With our international payment processing features, you have the opportunity to sell globally and reach a truly international audience. We give your customers the option to select from any of 15 languages and 26 currencies through the checkout process giving them a familiar and comfortable experience.
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PayPal
PayPal is an international e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as cheques and money orders. PayPal is the faster, safer way to send money, make an online payment, receive money or set up a merchant account.
2Checkout and PayPal are two well-known payment gateway providers, each with its own unique features and offerings.

2Checkout is a comprehensive payment platform that offers a wide range of payment solutions for businesses of all sizes. It provides support for online payments, subscription billing, global payment methods, and multi-currency transactions. 2Checkout emphasizes a user-friendly experience with features like customized checkout, fraud prevention, and recurring billing. It offers flexible pricing options, including transaction-based and subscription-based models, making it suitable for businesses with varying transaction volumes.

PayPal, on the other hand, is a widely recognized and trusted online payment system that enables businesses and consumers to send and receive payments securely. It offers seamless integration with e-commerce platforms, provides extensive buyer and seller protection, and supports various payment methods, including credit cards and digital wallets. PayPal is known for its user-friendly interface, fast payment processing, and wide acceptance globally.

The key differences between 2Checkout and PayPal lie in their focus, target market, and brand recognition. 2Checkout provides a comprehensive payment solution with a range of features, making it suitable for businesses of all sizes. PayPal, being a widely recognized and trusted name in online payments, appeals to a broad user base and offers simplicity and convenience.

See also: Top 10 Payment Processing platforms
2Checkout vs PayPal in our news:

2024. PayPal launches Tap to Pay on iPhone for business



PayPal has announced the rollout of "Tap to Pay" for merchants utilizing iPhones through the Venmo and Zettle applications in the U.S. This feature, facilitated by PayPal, enables businesses to accept contactless card and digital wallet payments directly on their iPhones without incurring extra expenses or requiring additional hardware. Following its introduction for Android phone merchants eight months prior, Tap to Pay allows merchants not only to accept payments from cards or digital wallets such as Apple Pay or Google Pay but also to incorporate taxes, receive tips, issue receipts, and process refunds seamlessly. PayPal assures that funds from transactions are promptly deposited into the merchant's Venmo or PayPal Zettle account. For each sale via the tap-to-pay method across Zettle and Venmo, PayPal applies a charge of 2.29% + 9¢.


2024. PayPal to pilot new AI-powered updates including Smart Receipts



PayPal is incorporating AI-driven personalization features. Among the introduced enhancements is the "CashPass" cash-back program, known as "Smart Receipts," which offers personalized recommendations, improved checkout and guest experiences. Additionally, the company is rolling out Venmo improvements tailored for small businesses and a new merchant offers platform. The CashPass feature within the app provides customers with access to a multitude of personalized cash-back offers, utilizing AI to curate recommendations based on individual shopping behaviors. Users can easily click on preferred offers, shop at the respective brand, and complete transactions using PayPal. The app will regularly present new offers, encouraging users to check for updates frequently.


2023. PayPal launches PYUSD stablecoin for payments and transfers



PayPal revealed its own stablecoin, named PayPal USD (PYUSD), designed for facilitating payments and transfers. Issued by Paxos Trust Company, PYUSD is secured by U.S. dollar deposits, short-term U.S. Treasuries, and comparable cash equivalents. The stablecoin's gradual rollout to U.S. customers represents a groundbreaking move by a major U.S. financial institution. Eligible U.S. PayPal users can now engage in various transactions using PYUSD, such as transferring it between PayPal and compatible external wallets, making person-to-person payments, funding purchases at checkout, and converting supported cryptocurrencies to and from PYUSD. PayPal emphasizes transparency by disclosing exchange rates and associated fees during cryptocurrency transactions, including crypto checkouts.


2020. PayPal to let buying and selling cryptocurrencies



PayPal has received a conditional BitLicense from the New York State Department of Financial Services and has collaborated with cryptocurrency company Paxos to introduce a new service. This development enables PayPal users in the United States to purchase, hold, and sell cryptocurrencies. Additionally, PayPal has plans to expand this service to more countries in the future. Initially, the supported cryptocurrencies will include Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Users will have the ability to connect their PayPal accounts to engage in buying and selling cryptocurrencies.


2018. PayPal Checkout improves personalization



PayPal has unveiled an innovative checkout technology designed for e-commerce websites, enabling the dynamic presentation of the most suitable payment method for individual customers. Instead of cluttering the checkout page with multiple payment options, PayPal Checkout now features "smart payment buttons" that adapt and display the appropriate set of choices based on each customer's location and preferences. This empowers retailers to seamlessly incorporate alternative payment methods, including local wallets and country-specific options, alongside the traditional PayPal button, offering a more tailored and convenient payment experience.


2018. PayPal integrates with Gmail and other Google services



Earlier this year, Google consolidated its payment services into a unified platform called Google Pay, aiming to streamline transactions across its ecosystem and encourage increased usage. Building upon this, Google has now announced a significant integration with PayPal. Users who link their PayPal accounts to their Google Play accounts will have the convenience of making payments and settling bills through PayPal without the need for separate logins or leaving Google services. This deep integration, expected to launch later this year, will encompass popular apps such as Gmail, YouTube, Google Store, and any services utilizing Google Pay. Not only will it support payments, but it will also facilitate peer-to-peer transfers. This collaboration aims to enhance user experience, making transactions seamless and effortless within the Google ecosystem.


2018. PayPal acquired Square of Europe - iZettle



PayPal is making a significant move to strengthen its position in point-of-sale transactions, small businesses, and international markets, aiming to compete with Square, Stripe, and other payment providers. The company has officially announced its acquisition of iZettle, a Stockholm-based payments provider often referred to as the "Square of Europe," in an all-cash deal valued at $2.2 billion. Similar to Square, iZettle has successfully established a strong presence in the point-of-sale market by offering a card-reading dongle that seamlessly connects with smartphones or tablets. This has enabled smaller businesses, previously deterred by high card processing costs, to accept card payments. iZettle has also expanded its services to include various financial solutions for these businesses, ranging from inventory management to loans. By acquiring iZettle, PayPal aims to enhance its capabilities and broaden its reach in the evolving payment landscape.


2017. PayPal acquired small business lending service Swift Financial



Global payments processing company PayPal has reached an agreement to acquire Swift Financial, a provider of working capital solutions for small business owners. This strategic acquisition will enhance PayPal's existing product, Working Capital, by providing advanced tools and capabilities. PayPal initially introduced its Working Capital offering for businesses in 2013. Since then, competitors such as Square and Kabbage have emerged, offering their own credit lines to small business customers. Recognizing this evolving landscape, PayPal has decided to acquire Swift Financial, aiming to strengthen its underwriting capabilities and expand the range of data it can leverage to evaluate the creditworthiness of its customers. This move will ultimately increase the amount of capital that PayPal can offer to its customers.


2017. PayPal launched small biz toolset Business in a Box


To attract more small business owners in the United States to its payments platform, PayPal has introduced a new service known as Business in Box. In collaboration with WooCommerce and Xero, PayPal offers a comprehensive suite of tools designed to assist merchants in effectively managing their online businesses. This inclusive service encompasses an online storefront, accounting tools, the option to apply for working capital through PayPal, and, of course, support for processing online or offline payments via PayPal. Business in Box primarily targets aspiring entrepreneurs who possess a clear vision for their offerings and business roadmap. Additionally, it caters to established brick-and-mortar businesses seeking to expand their operations to the online realm. By providing a robust set of resources, PayPal aims to facilitate the transition and success of both novice and established business owners in the digital landscape.


2017. PayPal teams up with Android Pay for mobile payments



PayPal and Google have jointly announced a collaboration aimed at enabling PayPal to extend its presence in both mobile applications and physical stores. This partnership entails integrating PayPal as a payment option within the Android Pay service, granting U.S. users the ability to make payments through PayPal for services such as Uber, as well as at various retailers including Walgreens, Dunkin' Donuts, and Subway. Initially, the integration with Android Pay will allow Android users to utilize their PayPal balance as a payment method. However, in the future, it will expand to encompass the cards that users have linked to their PayPal accounts.

Author: Sandeep Sharma
Sandeep is a marketing expert with a wealth of knowledge in various domains: customer relationship management, social media management, advertising, search engine optimization, website building, Sandeep has established himself as a multifaceted professional. He honed his skills while working at Salesforce and Hubspot, where he gained invaluable insights into the industry. Now, as the proud owner of a small advertising consulting agency, Sandeep continues to provide innovative and effective strategies to businesses, helping them thrive in the competitive landscape of digital marketing. You can contact Sandeep via email sandeep@liventerprise.com