With PayPal, both JCB cards and bank transfers are OK!

What payment methods are adopted on Shopify?
In the payment settings screen, there is PayPal listed alongside Shopify Payments and Amazon Pay, but many people on both the shop side and the buyer side may not fully understand "what can be done with PayPal." In this article, we will explain the benefits of using PayPal from the perspectives of both the shop side (seller) and the buyer side (buyer).

What is PayPal

PayPal is a service that allows you to make payments simply by logging into your PayPal account when you have registered your credit card, debit card, and bank account with your PayPal account. (In Japan, it became compatible with bank account transfers in June 2018.)
According to the official site, more than 250 million people are using it worldwide.
The following credit cards and bank accounts are available for registration.

Benefits of Introducing PayPal

Just by looking at the table above, those with good intuition or those who have been struggling with payment methods may have had a realization.
Stripe and Shopify Payments support credit cards that are not accepted in Japan. In particular, those that are widely used in Japan.JCB card can be used by defaultPoints will provide significant benefits to both sellers and buyers.
However, if the only benefit is that the range of usable credit cards increases, then Amazon Pay also allows the use of JCB cards and other cards, so it cannot be said that it is an advantage exclusive to PayPal.

The biggest advantage of introducing PayPal on Shopify is that it supports bank transfers.ではないでしょうか。
When it comes to bank transfers in online shops, the time until payment is received tends to be longer for the shop side, and there are also cumbersome operations such as matching orders and amounts. Additionally, since payment is not made at the time of ordering, there is the hassle of subsequent billing and reminders, as well as the risk of order cancellation due to non-payment. For buyers, whether they make the payment online or go to the bank to deposit, it clearly takes more time and effort compared to other payment methods.

By using PayPal, the shop does not need to handle billing or payment confirmation after the order. It is no different from when payment is made by credit card. For the buyer, once they log into their PayPal account, they only need to specify their registered credit card or bank account to complete the payment. It may be easier than entering a credit card number.

How to register a bank account with PayPal

Opening a PayPal account on the buyer's side is easy. You can start using it right away with just an email address and a valid credit card or bank account.New registration for PayPal here）
Credit cards can be used almost immediately as long as the card information is correct, but with bank accounts, there is one more step required.

上の画面はPayPalに登録されている支払方法リストです。左のリストに「！」が付いている支払方法は、PayPalに登録はしているものの銀行との認証（口座振替設定)ができていないものです。「口座振替の設定」のリンクをクリックすると、銀行のオンライン認証のページにジャンプします。銀行側にログインできれば、あとは画面の案内どおりに進めば特に面倒な入力等もなく、PayPalで使える銀行口座として登録されます。

Next, this is the screen during the payment process at the shop (Note: The account transfer settings for Sumitomo Mitsui Banking Corporation are not yet completed in the screen above). This is the screen after selecting PayPal as the payment method and logging in. You can see that the bank account and credit card registered for payment via PayPal are displayed. All you need to do is select the bank or credit card you want to use and press the continue button to complete the payment.

Personal PayPal accounts have no setup fees, annual fees, or transaction fees. There is only a currency exchange fee for foreign currency, but there are no other costs incurred, so I think it can be said that it is a service that is worth registering for. Additionally, the fact that your card or bank information is not shared with the shop at the time of payment is a significant advantage from a security perspective.

How to integrate PayPal into your Shopify store

Proceed to the payment settings screen, and when you select "PayPal Express Checkout" from the dropdown in the PayPal section, the screen below will be displayed.

Clicking the "Activate" button will redirect you to the PayPal login page. If you already have a PayPal business account, simply log in and follow the on-screen instructions to complete the integration with Shopify.

If you do not have a business account yet, please click the "Register" link on the login page and fill in the required information to register. After that, you will need to upload identification documents and register your bank account, among other things.
* The required documents and procedures vary depending on whether you are an individual or a corporation. For more details, please refer to the PayPal site.How to register a business accountPlease refer to the page.

Benefits of Introducing PayPal for Shops

1. Supports both card payments and lump-sum payments from bank accounts.

   SellerYou can receive payments from various credit cards and bank accounts all in one place just by opening a PayPal account.

2. Payment from bank accounts also increases conversion rates

   Payment from a bank account can be completed simply by entering the ID and password, which is expected to increase the conversion rate.

3. No need for reconciliation of payments from bank accounts

   No need to match the transfer results from the buyer with the order information.

4. Fast deposit cycle

   Sales are credited to the account immediately. Withdrawals to a bank account can be made in as little as 3 days.

5. No monthly usage fee, only pay for what you use.

   No account opening fees or fixed costs. You can use it with just a fee of 2.9% + 40 yen per transaction.

6. A safe and secure system to protect the shop

   No need to manage credit card or bank account information. A seller protection system that compensates for damages such as fraudulent transactions is also provided for free.

7. New registration takes only 3 minutes. You can receive it immediately after registration.

   Account registration is possible without review. You can receive payments immediately after registering your account.

8. Easy overseas expansion

   Automatically supports local card brands from various countries and 100 currencies worldwide. The payment screen is automatically displayed in the buyer's language.

Summary

PayPal generally provides significant convenience for buyers. However, currently, the adoption and usage rates of PayPal in Japan do not seem to be as high as those overseas. One reason for this may be that there are not many shops and users who understand that convenience. Shops need to make it known that payments can be made through PayPal even with credit cards or bank transfers that cannot be used directly at the shop. For example, if a user without a credit card becomes aware of PayPal through the shop's promotion and makes a purchase, it can be considered a WIN-WIN relationship.
First, it is essential for the shop side to understand the convenience of PayPal and raise awareness. If this is communicated to the users, the introduction and usage rate of PayPal in Japan should inevitably accelerate.

In this article, we mainly summarized the advantages of PayPal, but it is not entirely without disadvantages when compared to other payment methods. Particularly regarding the disadvantages for stores, I think the comparison article published in the past will be helpful, so please take a look at that as well.
→ Comparing the payment methods "Stripe" and "PayPal" that you want to implement first on Shopify