Ten years ago, PayPal was the ideal solution for small businesses that couldn’t justify the high costs of a merchant account. In its infancy, the growth of PayPal user accounts came from smaller merchants.
PayPal later became the norm for eBay and large etailers because it allowed people without credit cards to shop online.
Today, more and more online consumers are flocking to payment methods they feel provide the most security. Ideally, this includes methods that rely on users logging into third-party sites they trust, which, in turn, provide merchants with only a transaction number.
Pamela Hazelton is a senior contributor to Practical eCommerce.