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Post by catalist on Apr 21, 2017 6:33:59 GMT
Hi,
I have been trying to understand how p2p sites determine which forms of payment to provide for their investor.
What do you as investors consider the most conveniet form of investing? Is Paypal something that is practical also for people engaged in p2p investing?
As far as I know, Paypal charges the receiver few percent of the total amount, thus such transaction costs might prevent sites from introducing this form of payment. What do you think - is it worth including Paypal as a form of payment even though transaction costs are relatively high?
Thank you,
Catalist
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Post by wiseclerk on Apr 21, 2017 7:18:08 GMT
There are 2 aspects. Costs and AML/KYC.
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Post by jackpease on Apr 21, 2017 8:01:47 GMT
I think paypal costs are substantial - as most paypal accounts are funded via credit card you are paying for credit card fees (high) plus paypal's fees.
Loads of places won't take my Amex card cos of high charges and yet take paypal - suggesting paypal charge is high enough to cover Amex charges
Jack P
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Post by catalist on Apr 21, 2017 11:55:45 GMT
I think paypal costs are substantial - as most paypal accounts are funded via credit card you are paying for credit card fees (high) plus paypal's fees. Loads of places won't take my Amex card cos of high charges and yet take paypal - suggesting paypal charge is high enough to cover Amex charges Jack P Indeed paypal costs are high, but I am just curious why so many sites (i.e. European ones Mintos, Twino) offer only bank transfer and other forms of payment are not provided. I am just wondering if introduction of other forms of payment like paypal would increase investor base.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447 
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Post by stub8535 on Apr 21, 2017 12:33:19 GMT
No fan of enforced use of paypal that I am forced to endure daily in order to trade for now. Time bar from the companies split from ebay cannot come soon enough.
Banks offer alternative methods to transfer money to known contacts including phone to phone. Not sure of limits though as we would probably be talking about significant sums in this scenario of p2p.
Costs of currency conversion adds even more to the barriers to investing in European platforms.
Maybe UK should convert to using the Euro?😉
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Post by catalist on Apr 21, 2017 12:36:48 GMT
No fan of enforced use of paypal that I am forced to endure daily in order to trade for now. Time bar from the companies split from ebay cannot come soon enough. Banks offer alternative methods to transfer money to known contacts including phone to phone. Not sure of limits though as we would probably be talking about significant sums in this scenario of p2p. Costs of currency conversion adds even more to the barriers to investing in European platforms. Maybe UK should convert to using the Euro?😉 UK adopting EURO, while leaving EU, wouldnt that be a sight..
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Post by catalist on Apr 21, 2017 12:41:42 GMT
In essence I wonder if a p2p site that offers only bank transfers (which for the investor is not that convenient while saving some cash for the platform) can be considered serious.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,333
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Post by ilmoro on Apr 21, 2017 12:50:49 GMT
It will be down to individual sites interpretation of client money rules, AML/KYC. It has been argued by one platform, who I would consider to be serious, that funds have to be cleared in the account before they can be invested and payment forms like debit cards dont fulfil this regulatory criteria, other take a different view allowing debit cards and others still allow investment without funds on account. Cost is probably a major factor, several platforms dumped GoCardless because of the cost.
FCA would appear to accept debit cards as OK as at least one platform that accepts deposits that way has been authorised.
Paypal is an odd hybrid as it would enable payment both by cleared funds bank transfer or uncleared credit/debit card I think
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Apr 21, 2017 12:59:18 GMT
There are plenty of low cost options like transferwise or currency fair if you need to do cross currency. Within the same country bank transfers or those that allow payment by card is not so bad.
I ran a simple online service using paypal as the payment mechanism and aside from the high costs it had loads of problems: lots of complaints from users of transactions failing and delayed transactions, poor response from paypal when I tried to solve it.
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Post by Harland Kearney on Apr 21, 2017 14:04:30 GMT
From my own experience of being a PayPal seller. Sites using PayPal would likely suffer from increased fraud suspected payments, let alone the chargeback and resolution system that PayPal leaves many sellers and companies privy too. There is also a substantial PayPal seller charge for each transaction. Idk just speculation I think other users may have better info to weigh in on here  |
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Post by tybalt on Apr 21, 2017 15:06:59 GMT
In essence I wonder if a p2p site that offers only bank transfers (which for the investor is not that convenient while saving some cash for the platform) can be considered serious.
I do not understand this Bank Transfers take me about 30 seconds and cost nothing. Why should a platform incur the costs of say credit card or other processing ?
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Post by catalist on Apr 21, 2017 15:29:34 GMT
In essence I wonder if a p2p site that offers only bank transfers (which for the investor is not that convenient while saving some cash for the platform) can be considered serious.
I do not understand this Bank Transfers take me about 30 seconds and cost nothing. Why should a platform incur the costs of say credit card or other processing ?
I guess its about the ease of investing / impulsive investing. Sure for professional investors bank transfer, keeping all other factors constant, is not a deal killer, but for people visiting the site for the first time, providing other, more conveniet forms of payment might be better.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 21, 2017 15:32:53 GMT
The advantage of paypal for purchases is that you don't have to give a site you don't know well your card details to make a purchase. Probably too expensive for P2P.
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Post by tybalt on Apr 21, 2017 16:11:41 GMT
I do not understand this Bank Transfers take me about 30 seconds and cost nothing. Why should a platform incur the costs of say credit card or other processing ?
I guess its about the ease of investing / impulsive investing. Sure for professional investors bank transfer, keeping all other factors constant, is not a deal killer, but for people visiting the site for the first time, providing other, more conveniet forms of payment might be better.
I invest/gamble on ThinCats which has a minimum bid of £ 1,000 which probably deters impulse investing for most people
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ribs
Probably not James Marshall
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Post by ribs on Apr 22, 2017 13:19:38 GMT
Is Paypal something that is practical also for people engaged in p2p investing? If platforms want to get nerds and/or young people engaged that should probably consider accepting cryptocurrencies like Bitcoin. With services like bitpay they can still receive fait money and not have to worry about it, if they prefer. Fees are lower too and chargebacks are not possible. I suspect I'm in the minority in that opinion though.
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