PayPal is an easy, fast and secure online payment solution that makes it effortless for your customers to complete a purchase. Offer PayPal in your webshop.
What is PayPal?
PayPal is a global, well-established payment solution that allows customers to pay quickly and securely online - without sharing card details at checkout. It’s a payment method that millions of customers around the world already know and trust, which is exactly why many webshops choose to offer PayPal as part of their payment setup.
When you offer PayPal at checkout, you give your customers a flexible way to pay in just a few clicks across currencies and borders. This can boost your conversion rate, because you meet your customers’ preferences and reduce friction in the buying experience.
How does PayPal work as a payment method?
PayPal works like a digital wallet, where customers link one or more payment cards or transfer money to their account. When a customer shops online, they select PayPal as the payment method and log in with their email address and password. The payment is completed without the customer needing to enter card details or reach for their wallet.
That convenience makes PayPal an obvious solution, especially on mobile devices, where fast and frictionless payments are often crucial to whether a purchase is completed. At the same time, PayPal protects the buyer’s information with encryption and security layers that help reduce the risk of fraud, both for you as a retailer and for the customer.
When you receive an order paid with PayPal, the rest of the order flow typically proceeds as with other payment methods: the payment is registered, the order is processed, and the item is shipped as usual. PayPal can also be integrated via most payment gateways, making it easy to turn into a permanent part of your checkout.
Benefits of offering PayPal in your webshop
Offering PayPal is about strengthening the customer experience and meeting the need for flexibility and trust. Many customers already have a PayPal account and actively choose webshops that offer this particular payment method. It can therefore be a concrete competitive advantage.
In short, PayPal can help you:
- Reduce friction at checkout: the customer pays in just a few clicks, especially on mobile.
- Build confidence with new customers: a familiar solution lowers the barrier to first-time purchases.
- Accommodate international customers: PayPal supports payment across currencies and countries.
- Offer payment flexibility: the customer chooses the method they feel most comfortable with.
For webshops shipping to multiple markets, PayPal can be a relevant piece of the payment strategy. In the Nordic markets - Denmark, Sweden and Norway - and across the rest of Europe, the solution is well known among consumers with high expectations for the payment experience.
A well-thought-out payment strategy also works closely together with your shipping strategy: if you optimize both payment and delivery, you create a more cohesive experience that increases the chance of the customer returning.
What does it cost to receive payment with PayPal?
PayPal charges transaction fees on every payment. The rates typically vary depending on volume, currency and the customer’s geographic location, and usually consist of a percentage of the transaction plus a fixed amount per order. If the customer pays in a foreign currency, a currency conversion fee may also apply.
Because the fee structure can change, we recommend checking PayPal’s official website for the current rates and terms. Especially if you plan to make PayPal a permanent part of your international checkout.
When does it make sense to offer PayPal?
PayPal is a strong solution for many types of webshops, but especially for you if you:
- Ship to multiple countries and want to offer familiar payment solutions across markets
- Want to improve the mobile experience and reduce friction at checkout
- Want to build trust with first-time buyers or more sceptical customers
- Work with a broad customer base and want to differentiate yourself on flexibility
In markets with high demand for payment flexibility, PayPal can act as a valuable factor at checkout. The payment experience is easy and fast and requires minimal effort from the customer, and that’s often exactly the kind of experience that determines whether the purchase is completed.
How to manage PayPal orders in Shipmondo
No matter which payment method your customers choose, you gather orders, shipping and payment in one flow with Shipmondo. When an order is paid with PayPal, it lands in your overview the same way as all other orders, ready to be processed and shipped.
With Order Management, you can:
- Gather orders from your sales channels in one workflow
- Book freight and print shipping labels
- Capture payment once the order has been processed
- Send tracking information to your customers automatically
This makes the path from payment to shipped parcel shorter and clearer, without you having to jump between multiple systems.
Want to see it in practice? Create a free account and experience for yourself how you can manage orders, shipping and payment together with Shipmondo.