Trading Life 10-01-2023 10:24 30 Views

Webmoney vs PayPal – thorough comparison

Webmoney vs PayPal – thorough comparison

PayPal represents the leader among online payment systems. However, many are searching for its alternatives, and the good news is there are many. One of the available alternatives to PayPal is Webmoney online payment service provider. In this article, we bring you WebMoney vs PayPal side-by-side comparison, so you can finally see which one to choose for your online business, shopping, or simply storing the funds. 

What is Webmoney?

In our WebMoney vs PayPal comparison, let’s start with a general overview of the WebMoney payment system. This alternative to the PayPal payment system is a convenient and simple way to receive and send your money. 

The service is registered in Russia and dates back to 1998. It was initially created as a money transfer system focused on US dollars. In 2015 the company got the FCA license for issuing money in the European economic zone. 

Currently, Webmoney counts more than 45 million users, mainly in Eastern Europe. In fact, it’s the most common alternative for Paypal in Eastern Europe. Approximately 40 000 new user accounts are created monthly on WebMoney online payment platform. 

With over 300 000 weekly clients, it’s a reputable and trustworthy payment method. More than 100 000 online stores accept payments via the WebMoney application.

Regarding fees, WebMoney Transfer charges 0.08 percent of the value of the transaction and serves as a peer-to-peer and escrow system. 

WebMoney offers its WebMoney Keeper application suitable for Android, Microsoft Windows Desktop, Ios based devices.  

Unfortunately, Kris Kaspersky once discovered a glitch in the security system for Windows-based devices, which affected for a moment its reputation. However, that’s the only security issue recorded with this payment system.  

WebMoney also represents the e-wallet for online payment. Funding the account is a very easy process. You can use a bank account, debit card, or cash at the kiosk. In Eastern Europe, consumers use WebMoney to pay almost a quarter of their total online purchases. Consumers in Eastern Europe spend billions using this alternative payment method to PayPal. 

Advantages of WebMoney online payment platform

A simple opening of your account Free membership without subscription or commitment. An associated business account with no fees or account maintenance fees. Competitive fees Availability of funds the next day for better cash management Offers the payment link by email with a secure code. Dynamic display of payment methods that convert best to avoid cart abandonment. If you are an online business owner, your customers can pay you on credit in installments while being paid in advance directly. The use is pleasant. It is a very useful tool and easy to tame. The system allows each client to take a loan. Once installed on your computer, you can use the app without the browser.

Cons of WebMoney online payment platform

As reported by some clients, there were cases of unreasonable blocking of accounts Not very agile customer support. Responses to queries are received with long delays The clients must provide complete information, including passport details, during registration The service is mostly limited to Russia and Eastern Europe countries There is no chargeback option

Paypal – general overview

Paypal is none other than the leader in online payment in the world. This service was created in 2000, and it was immediately a small revolution. It is a reliable digital wallet that allows you to store, send or receive money. So, whether you are a seller or a buyer, you can take advantage of this service quickly and very simply.

Today, Paypal has no less than 100 million accounts and just as many users, spread over more than 200 countries. If you are used to shopping on the internet, then you have probably already seen the Paypal logo since the vast majority of merchant sites accept payment by Paypal.

Its success comes from its simplicity, but above all, from its seriousness and reliability. Paypal does indeed carry out its work legally and in a transparent manner. Like banks, it has the authority to operate within a legal framework that guarantees secure transactions.

Pros of Paypal online payment system

Paypal is a safe bet for secure, reliable, simple, and fast online payments.  Prices are very competitive for sellers; everything is free or almost free for buyers.  Opening an account is easy, and using the site or smartphone applications is really very pleasant. Rare are online businesses not accepting this payment method.

Cons of Paypal

Source: blueocean.ca The currency exchange is not competitive, and transfers are sometimes a bit long from a Paypal balance to a bank account.  High chargeback fees. Higher fees compared to a typical merchant account. Account suspension for T&C violations. Your funds could be frozen for months. that can freeze your funds for months. It may take two business days to receive money in your account. Customer support can be hard to reach. The blocking process is sometimes completely opaque.

If you are looking for a reliable digital wallet for your online purchases, then Paypal is probably the best choice. Ditto if you are a seller; Paypal offers a convenient billing service with a well-established dispute system that can save you time. In short, Paypal is THE online payment service par excellence.

Who can use this service?

Whether you are an individual or a professional, a buyer or a seller, you can open a Paypal account and use its services. However, there are some differences depending on the user profile.

Paypal allows us to never reveal our bank information to the various merchant sites we consult. A single identification via an email address and a password are necessary. We can pay directly via a balance on our Paypal account or be debited automatically by Paypal directly on our bank account.

It is also possible to send money to another Paypal account. That is obviously very practical when you want to lend or give money to a relative or friend. This service is free if the two Paypal accounts are opened in the same region and use the same currency.

Finally, Paypal also offers a regulation for purchase protection. In a dispute between a buyer and a seller, the money may be blocked by Paypal. It will then be necessary for both parties to provide documents to prove their good faith, and Paypal will decide whether to cancel or confirm the sale.

Paypal services for sellers

The seller obviously benefits from the dispute service, but above all, it is a fast and reliable way to receive money and to be paid by his customers. Setting up the Paypal invoicing service on its site is completely free. On the other hand, paying a % on each sale and respecting all the conditions of admission claimed by Paypal will be necessary. The online payment site is free to refuse your request to open a professional account.

Otherwise, the currency conversion incurs a fee. You can switch from one currency to another on Paypal. There are almost all currencies in the world. However, the exchange rate is generally quite bad, and it is advisable to avoid transactions with countries that use another currency than yours.

As a seller, you are taxed on your monthly sales volume. The bigger the number, the lower the Paypal fee rate. For example, from 0 to €2,500 per month, you pay 3.4% per transaction + €0.25. Beyond €10,000 in sales, the rate is 1.8% per transaction + €0.25.

WebMoney vs PayPal – Bottom Line

PayPal as a leader in the payment systems market has proven efficiency, reliability, and high-security level as an online payment system. Due to its good reputation, it has become the synonym for online payment systems. 

Paypal allows you to pay for purchases on many sales sites. It means payment allows you not to use your bank card and, therefore, not to communicate the information of this one. Even on secure sites, that’s extra security. When you make a purchase using this means of payment, you benefit from insurance on the delivery of the products purchased, which covers the purchase until it is delivered. 

So regarding Webmoney, we are talking about it as an alternative to PayPal. You can purchase almost anything online using Webmoney, and you can pay for many types of services online. Since this payment method is mainly focused on Russia and Eastern European countries, you may find it difficult to withdraw your funds once located out of these territories. The availability of multicurrency accounts is also very convenient. As a client, you can handle several currencies at once. The system allows the users to the loans. Also, the nice perk is that it offers a thorough guide through the platform for beginner users.

Generally, In our WebMoney vs PayPal comparison, if you are an online business owner, Paypal is the best option. If you are searching for a wallet for storing your funds or transferring money to friends and family, WebMoney will be a satisfying solution. WebMoney is not one of the main Paypal competitors, but it really has a lot to offer. With all being said above, it will certainly depend on the overall fee system but most of your expectations regarding which system you choose.

The post Webmoney vs PayPal – thorough comparison appeared first on FinanceBrokerage.

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