easy integration is cool, obviously, but 2.9% + .30 is the same price as paypal. businesses ultimately don't care about how easy it is to integrate but how much it costs.
> businesses ultimately don't care about how easy it is to integrate but how much it costs.
For many large-scale businesses, the ongoing cost of a higher rate will overwhelm the startup costs of building it and you will be correct.
But that is not the only sort of business in the world. For many tiny businesses the startup costs exceed their available funds -- they would pay ANY rate so long as the profit from the new customers it brings exceeds the cost to existing customers.
For some startup companies, the savings in integration (both of dollars and more significantly savings of time) is a short-term cost to be minimized even if it means a larger cost in processing fees to be shouldered next month or next year. After all, if we don't get a demo out the door there won't BE a next month or next year.
And 2.9% + 0.30 really isn't all that high. It's high enough to hurt, but not high enough to drive away customers. For some, this amount really makes a difference and they can do better, but don't fall into the trap of assuming that EVERYONE is like that.
The problem with paypal is they have different APIs with different features that are non-overlapping.
There is no API that allows you to chain payments through my account to the seller and the affiliate when you check out multiple items when the user does not have a PayPal account.
That combination of features is mutually exclusive, but it should be like the most common thing in the world for an e-commerce website with an affiliate program and multiple item check-out.
For many large-scale businesses, the ongoing cost of a higher rate will overwhelm the startup costs of building it and you will be correct.
But that is not the only sort of business in the world. For many tiny businesses the startup costs exceed their available funds -- they would pay ANY rate so long as the profit from the new customers it brings exceeds the cost to existing customers.
For some startup companies, the savings in integration (both of dollars and more significantly savings of time) is a short-term cost to be minimized even if it means a larger cost in processing fees to be shouldered next month or next year. After all, if we don't get a demo out the door there won't BE a next month or next year.
And 2.9% + 0.30 really isn't all that high. It's high enough to hurt, but not high enough to drive away customers. For some, this amount really makes a difference and they can do better, but don't fall into the trap of assuming that EVERYONE is like that.