Online payments giant PayPal wants to open up the e-commerce sector to small businesses. The company is in the process of unveiling an all-new e-commerce platform.
And according to the firm, the platform will allow small businesses to access the same online shopping infrastructure that tech giants like Facebook do.
The new e-commerce platform will consolidate all current PayPal’s payments business. Accordingly, traders will be able to accept money via the internet while buyers will be able to pay for their purchases through PayPal.
The new platform additionally enables back-end systems including protection against fraud, compliance made easy and also account authentication which could be costly for small business and almost impossible if they were to build their own, according to PayPal COO Bill Ready.
Some of the leading platforms like Facebook Marketplace and Instagram Checkout have already started using the platform. As Ready observes, the new service will broaden out the offering allowing the majority of companies to benefit from the same back-end system. Shoppers will be able to shop off of one’s social news feeds.
Partners, as well as online marketplaces, are not new services to PayPal. The service was at some time an e-commerce payment option for eBay. Ready noted that from the last earnings call, the platform’s top 20 marketplaces rose by 40 percent year over a year getting to a volume of about $90 billion in 2018.
Ready had worked with Braintree as the CEO before joining PayPal. In his view, the move could see the company expand from its current 277 million users and 22 million merchants to even higher numbers. Braintree was acquired by PayPal later.
Since 2015 when PayPal spun off from eBay, it has grown tremendously beyond online checkout. The California-based platform has specialized more on mobile payments which about 40 percent of its business specialization and also small business lending.
PayPal has 40 million users on its popular Venmo app, a peer-to-peer app that allows for checkout on the commerce system.
The upcoming commerce platform has added benefits such as payouts and disputes, onboarding, AI and machine learning-powered fraud protection tools.
The PayPal commerce service will be accessible in the United Kingdom, United States and also Europe but there are plans to expand to more markets across the globe where they are already established.