[randytandy]

Okay thank you, @fwir, @asdajksah2123, @lathiat These points make much more sense however

If there is 1.75% of counterparty risk then why do bank transfers charge fixed rates of 0, 3 Euro and alike. If the underlying transfer is swift, sepa, wire then shouldn't this be the baseline?

That or give the option to accept the counter party risk for failure of transfers.

And there surely is signing methods that one could do as an escrow like service to mitigate most of the fee

[lytefm]

In addition to the points already mentioned (counterparty risk, currency conversion, popularity, ease of seller side integration), don't underestimate how much PayPal can increase conversion rates by making it easy for the buyer to make a purchase.

Fumbling around with credit cards or IBAN numbers + having your banking app fail randomly when trying to authorize payments is annoying. PayPal just works. Also, if you're some random shop on the internet many customers prefer to pay via PayPal rather providing you banking details or credit card numbers.

> That or give the option to accept the counter party risk for failure of transfers.

In Germany, merchants frequently offer to be paid by IBAN in advance or by invoice after the delivery. No fees, but the risk is fully on one side.

> And there surely is signing methods that one could do as an escrow like service to mitigate most of the fee.

PayPal basically acts like an escrow with their buyer protection policy. If you find another provider, good luck convincing the customers.

[anonzzzies]

> Fumbling around with credit cards or IBAN numbers + having your banking app fail randomly when trying to authorize payments is annoying.

What country? I use 3 EU banks and different credit/debit cards and haven’t had issues in the past 5+ years; there is no fumbling; the data is stored in Apple Pay or google pay or the browser password vault, so maybe (there isn’t anymore as the banking apps immediately allow to add your card without you even having a physical card) there is 1 time fumbling and that’s it. And the banking apps have never failed for auth.

PayPal on the other hand stole money from my company and closed/banned my personal account because they simply couldn’t fix a bug they have and closing an account is easier and cheaper for them. It’s a horrible company and has high fees. Happy to never having to use them again.