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PayPal for Marketplaces

Overview

PayPal for Marketplaces leverages the world's most recognized payment brand to provide marketplace payment processing. With 400M+ active accounts globally, PayPal offers instant buyer trust and familiarity. It supports 24 currencies, split payments, and seller onboarding. While less flexible than Stripe Connect for custom flows, PayPal's brand recognition can significantly boost checkout conversion rates.

Best for: Marketplaces where buyer trust and conversion are the top priority, especially in regions with high PayPal adoption.

Key features

Pricing

2.99% + fixed fee per transaction

Model: Per-transaction fees

Pros & cons

Pros

  • + Highest brand recognition — instant buyer trust
  • + 400M+ active user accounts globally
  • + Buyer protection increases purchase confidence
  • + Quick seller onboarding via existing PayPal accounts
  • + Strong dispute resolution system

Cons

  • Hosted payment experience — less control over UX
  • 24 currencies (vs Stripe's 135+)
  • Less flexible for custom payment flows
  • Higher fees compared to some alternatives
  • Account freezes can be aggressive

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