October 31, 2017
PayPal made two announcements in the past week that could be significant for some e-commerce merchants: the introduction of a payment solution specifically for online marketplaces and the rollout of a set of analytics tools to help merchants understand their customers.
According to the online payment pioneer, PayPal for Marketplaces is specifically tailored for businesses that need to both accept funds from customers and disburse funds to sellers. The company said it has served marketplaces like Uber and Airbnb with its traditional solution, but said PayPal for Marketplaces will enable simpler execution of things like collection of commissions and fees or multi-party disbursements.
“We can also tailor our solution based on the marketplace’s need,” said Manju Thomas, senior director of partners and marketplaces for PayPal. “For example, for marketplaces that don’t want to take on all of the risk, we offer solutions that allow PayPal to help manage the risk. But we also offer a solution for other marketplaces that want more control and risk ownership.”
In a separate announcement, San Jose, Calif.-based PayPal said it will enable merchants to tap into the data generated by their consumer users.
Part of the newly introduced PayPal Marketing Solutions is a feature called Shopper Insights, which will give merchants access to aggregated and anonymous information about the behaviors and preferences of PayPal shoppers on a merchant’s site.
According to Harshal Deo, vice president of commerce solutions for PayPal, Shopper Insights “includes things like: how many shoppers are mobile shoppers; how many shop for big ticket vs small ticket items; how a particular merchant site attracts customers compared to other similar sites and soon, actionable recommendations on how to help turn prospects into customers and customers into loyal and engaged patrons.”