registerme
Member of DD Central
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Post by registerme on Apr 23, 2017 0:44:56 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 ?
There's a an awful lot of people, process and infrastructure behind it costing you nothing. Just saying  .
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Post by lynnanthony on Apr 23, 2017 7:08:35 GMT
Out of interest, can you buy stocks and shares using Paypal? or unit trusts? Or can you make a deposit into any bank or building society savings accounts using Paypal?
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gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 256
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Post by gibmike on Apr 23, 2017 7:55:40 GMT
I use IG for trading (a hobby nothing serious) and they accept Paypal as a source of funds.
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Post by dudave on Apr 23, 2017 12:42:38 GMT
Out of interest, can you buy stocks and shares using Paypal? or unit trusts? Or can you make a deposit into any bank or building society savings accounts using Paypal? Nope, getting your money into other placements from paypal directly is almost impossible, you can either transfer it (or pay) into another Paypal account or you can withdraw the money into your bank account, that's about it.
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Post by easteregg on Apr 23, 2017 18:20:17 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. There are a few P2P platforms that accept BitCoins - see website for details. When I was working for a previous employer we did find PayPal had more than its fair share of issues, and its costs were out of step with other payment methods.
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Post by catalist on Apr 23, 2017 18:23:33 GMT
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. There are a few P2P platforms that accept BitCoins - see website for details. When I was working for a previous employer we did find PayPal had more than its fair share of issues, and its costs were out of step with other payment methods. Was your previous employer a p2p platform?
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Post by easteregg on Apr 23, 2017 18:35:35 GMT
There are a few P2P platforms that accept BitCoins - see website for details. When I was working for a previous employer we did find PayPal had more than its fair share of issues, and its costs were out of step with other payment methods. Was your previous employer a p2p platform? It was a company that provided an eCommerce platform, so no link with P2P.
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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 23, 2017 19:20:41 GMT
Out of interest, can you buy stocks and shares using Paypal? or unit trusts? Or can you make a deposit into any bank or building society savings accounts using Paypal? You can make deposits into linked bank accounts lynnanthony but not other peoples afaik. You can transfer money to another persons paypal account for free but not if you are running a business in which case you would pay the fees. Never thought of moving money from paypal to investment products without going through my bank accounts. Easier for tax purposes.
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Post by andrewcfa on Apr 24, 2017 11:12:53 GMT
Hi Catalist,
Great question about payment options.
When we chose the payment methods for our platform, it was a balance between cost, user experience and brand. Furthermore, certain solutions suit certain individuals, so it is good to offer at least 2 methods.
Our platform offers a debit card facility provided by Paysafe, a direct debit facility provided by GoCardless and a traditional bank transfer facility. The cost of a transaction equals about 0.5% (half a percent) of the transaction total, which we find fair and can absorb. To date, a little over 67% of transactions have been via a debit card, I expect this to continue to grow.
Unfortunately, PayPal (Braintree) is quite expensive as a source of funding, with the average cost above 1.2%. We would use Braintree if the price was closer to the 0.5% mark.
I hope this helps
Andrew
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Post by catalist on Apr 24, 2017 16:32:25 GMT
Hi Catalist, Great question about payment options. When we chose the payment methods for our platform, it was a balance between cost, user experience and brand. Furthermore, certain solutions suit certain individuals, so it is good to offer at least 2 methods. Our platform offers a debit card facility provided by Paysafe, a direct debit facility provided by GoCardless and a traditional bank transfer facility. The cost of a transaction equals about 0.5% (half a percent) of the transaction total, which we find fair and can absorb. To date, a little over 67% of transactions have been via a debit card, I expect this to continue to grow. Unfortunately, PayPal (Braintree) is quite expensive as a source of funding, with the average cost above 1.2%. We would use Braintree if the price was closer to the 0.5% mark. I hope this helps Andrew Andrew, Thank you for the very useful answer. Catalist.
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Post by catalist on Apr 24, 2017 17:55:48 GMT
Hi Catalist, Great question about payment options. When we chose the payment methods for our platform, it was a balance between cost, user experience and brand. Furthermore, certain solutions suit certain individuals, so it is good to offer at least 2 methods. Our platform offers a debit card facility provided by Paysafe, a direct debit facility provided by GoCardless and a traditional bank transfer facility. The cost of a transaction equals about 0.5% (half a percent) of the transaction total, which we find fair and can absorb. To date, a little over 67% of transactions have been via a debit card, I expect this to continue to grow. Unfortunately, PayPal (Braintree) is quite expensive as a source of funding, with the average cost above 1.2%. We would use Braintree if the price was closer to the 0.5% mark. I hope this helps Andrew However, Andrew, I wonder how you can get ''average cost above 1.2%'' if paypal clearly states that the minimum fee is 1.9% (Quote from PayPal: ''Your fees can be as low as 1.9%, based on your previous month's sales volume.'') Thanks!
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Post by andrewcfa on Apr 25, 2017 9:44:59 GMT
Hi Catalist,
Whilst many providers will advertise certain prices you can usually get a volume discount for an enterprise level package. Alternatively, if a service is new or trying to enter a market they will also offer 'selected' partners a deal to establish themselves.
For instance, GoCardless advertise a charge of 1%, however as they were keen to work with crowdfunding platforms and therefore we were able to agree to a fee of 0.5% (in 2014).
I hope this helps, but I am happy to answer further questions on payments.
Andrew
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