As you’ve undoubtedly noticed, the PayPal button has become ubiquitous across the net. Is it trustworthy? So far, our experience says so, but we’re relatively new PayPal users. More importantly, 33 percent of online customers think PayPal is trustworthy, according to a Gartner survey of more than 1,000 online consumers in the United States. With an installed user base of 13 million, PayPal is adding 20,000 users a day; a growth rate that will almost surely increase its trustworthiness.
One of the more interesting forecasts of the Gartner survey is the analysis that when PayPal has 25 million users, mainstream retailers online will have to offer PayPal as a payment alternative.
ARTS & FARCES uses PayPal for most of our underwriting solicitations and merchandise. Why? Because PayPal’s rates are significantly lower than any mainstream bank card merchant account available to small businesses. No monthly minimums, no software or equipment charges, no support charges, and the list just goes on.
PayPal divested its banking unit last year, probably to avoid regulation. The smart money, and the Gartner report, say that PayPal will likely become a bank since it’s already facing regulation in at least four states.
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