Recently PayPal released a policy update to their terms of service. Amongst other updates, it indicated that they will increase their transactional charges for local and international transactions. According to TrustedReviews; “the payment processor has imposed a number of fee increases on its US customers that will hurt just about anyone who uses the service for anything other than buying. What’s more, retailers themselves are being hit by an additional change, which PayPal has dubbed “non-discouragement clause.”
What does PayPal price hike mean to you if you run an international business?
This policy update is a bad news especially for business owners with a lot of international transactions as their profit margin will now be reduced considerably. To understand this actual impact, it is important to note that users of PayPal business account are still expected to pay monthly subscription fees and there are other fixed charges per transaction they will still pay to PayPal.
So, what alternative payment gateway works for international businesses?
If you are a PayPal user in US or UK, you are probably looking for alternatives you can use to sell to international market. Before you make your choice, you need to understand what is at stake and what cost-effective options are available to you. One of such options could be VoguePay.
While VoguePay is a relatively new online payment gateway, it was launched in 2012 and has amassed over 50,000 international merchants in Africa, Americas, Europe and Asia. In 2016, the payment company won several awards including the Forbes-recognized Achievers Award and it was named as the top 3 Fintech platforms in Africa by Finance-Indaba.
Is VoguePay A Credible Alternative To PayPal for International payment?
The big question is: “Is VoguePay A Credible Alternative To PayPal for International payment?”. To answer this question, I will compare VoguePay with PayPal across 5 indices that are important to businesses doing international transactions.
1. Which Is More Focused on Small Business – is It PayPal or VoguePay?
When you put it side-by-side, PayPal is mostly a consumer-driven platform to make payment. Whereas, VoguePay was designed with small business merchants in mind, to accept payment.
This major market-focus is critical to how they “treat” business customers. That is why VoguePay – a business-first platform – comes pre-bundled with a lot of business support tools as well as advanced accounting functionalities which is not readily available in PayPal accounts. Nowadays, SMEs do a lot more than receiving payment, they want a complete solution like the one VoguePay offers according to this review.
2. Which Offers Lower Fees – is It PayPal or VoguePay?
According to the new policy update, PayPal fees is now increased to 4.4% for international transactions whereas VoguePay reviewed its prices downward early this year to 3.5% + 0.5
When you factor in other PayPal fees like their monthly account maintenance fee and other associated charges, it becomes a cost-burden to businesses with a lot of transactions. Another major difference is that while VoguePay charges are deducted after successful transactions, PayPal continues to charge for monthly account maintenance fee even when there are no transactions to your account. Therefore, if your business sales is seasonal or you are out sales, you don’t worry about getting additional bills on VoguePay.
3. Which Is Most popular – is It PayPal or VoguePay?
By a wide margin, PayPal is the more popular of the two. Don’t forget that it is even a publicly traded company whereas VoguePay is not. At the end of the day, what matters to your business is not how popular the platform is but how acceptable it is to your users. While PayPal has more people using it, VoguePay is trusted by more than 50,000 businesses in 4 continents to accept and send payments.
4. Which Offers better security – is It PayPal or VoguePay?
PayPal and VoguePay pride themselves in advanced security, enabled by machine learning algorithm. They are both trusted platforms.
5. Which Is Best for doing businesses in Nigeria– is It PayPal or VoguePay?
Nigeria is one of the biggest economies in Africa with a lot of trade relations with US, UK and other international economies. Unfortunately, Nigeria is “notorious” for online fraud. Infact, when PayPal launched in Nigeria, it limited the services offered to Nigerian users. Someone even petitioned them to reconsider their discriminatory stand to Nigeria.
According to industry comments, the biggest worry for PayPal or any foreign-based payment platform is the concern about fraud. This lack of understanding of curbing frauds via card payment by PayPal is responsible for them not releasing their full services in full in Nigeria. Thankfully, VoguePay has perfected a security framework that ensures that fraud on the platform is approximately 0%. Hence, it serves as a perfect substitute for accepting payment from users in Nigeria and vice versa.
What Next ?
Wherever your business is located globally, you can trust VoguePay as the online payment gateway of choice to send and receive payment. To get started, you can created a page for international customers that want to receive payment from Africa.
Get started and receive additional support to help you reach your market in more than 50 countries in Africa. Learn more here
(Please note that we have compiled a list of frequently asked questions about VoguePay on our support desk here and hope they help you get started. if you need further assistance with using VoguePay, please leave a comment to this post or send a mail to firstname.lastname@example.org)