Forum Moderators: buckworks
Discovered this site through a google search and gosh, what a terrific resource. Now that the gratuitous platitudes are done <grin>, here's my question:
- if you were to offer a subscription based service (< US$ 10 pm), available to subscribers worldwide, would you choose PayPal, WorldPay, or some other service provider that offers a recurring payments model?
Here's some background: I look after the R&D arm of a mobile operator in SE Asia and we're getting ready to launch a direct-to-consumer international service that involves a combination of software (free download) and a service plus mobile access to GSM users worldwide (they don't have to be subscribers of our parent telco). (I'd be happy to elaborate on the nature of the service but don't want to run afoul of this site's posting etiquette)
Given that it's a subscription service (and not a one-off transaction), if we were to accept cards ourselves, we'd probably have to store the credit card information on our own and hit the payment gateways on the monthly anniversary. Given the risks with storing this information, I'd rather not go down this route at all and use an external service provider instead, at least until we build a 4-figure subscriber base.
We've looked at WorldPay (I even filled the forms and got ready to pay them their account fee until they came back with a ridiculous stipulation that we had to LIMIT how much money we could make on a monthly basis from their system or put in a 5-figure security deposit... our Finance people rolled their eyes at the need to maintain a security deposit with them - remember, this is a nicely profitable telco with hundreds of millions in annual revenue, being asked to place a security deposit! - so WorldPay's mostly out). Next, Google Payments (we intend to use AdWords extensively, so the discounts would've been cool) - but they don't support recurring payments [yet]. And now we're looking at PayPal, which seems to support everything we want (multiple currencies, recurring payments, API triggering), at a nice low fee.
Clearly, whichever route we go (WorldPay / PayPal), the user is going to need an account with the card service provider - if he doesn't already have an account, this additional step could be a turn-off.
So:
- is there a card acceptance organization you're familiar with that does not require the user to create an account for recurring payments?
- am I right in assuming that if we HAVE to go with the account step, users would be more comfortable creating an account with PayPal than WorldPay (the latter, I feel, is not quite as well known)?
Thanks for readng this. Appreciate your thoughts.
the trading limit you've been given isn't a fixed trading limit
it's the initial maximum that worldpay's underwriters will underwrite the service for
bear in mind you're on the other side of the world and the underwriters don't know you and worldpay may not be able to get their money back if you screw up - and there are risks with memberships
what has been offered to you is no different to any other company
the "limit" can be flexible - if you approach the "limit", you request an increase in the limit
thing is, it always makes me laugh when people claim to have multi million $ companies and can't make a small security deposit
probably makes a lot of payment providers laugh as well
and IMO suggests these multi million companies are probably fictional
and makes me laugh even more when they're considering paypal!
Seriously though, what's wrong with considering PayPal? I'm talking about PayPal's Website Payments Pro, to accept credit cards, rather than restricting ourselves to accepting "pure" PayPal. Seems like a robust, professional, well thought out, feature laden and inexpensive platform to me. What have I overlooked?
As for the million-dollar companies not existing, WorldPay's local account manager has met with us in our office a number of times and is familiar with us and the 1400-person organization we're a part of. So no worries there. :-) The trouble with such large organizations is that their Finance groups are used to things being done their way - it's a lot more difficult for them to be nimble or to do things differently, especially when it involves their reputation being questioned (you and I know how to work within rules imposed by third parties; these guys want the third parties to work within their rules!)
Would appreciate your thoughts on why PayPal is the wrong choice.
Regards,
- V.
IAC, what we've decided to do for now is send the customer to PayPal and use different return pages for success / failure, rather than going the API route, which I'm told is US-only.
Also, based on what I read here, we decided to add an option that lets a user pay up-front for X months - this way, he doesn't need to have a PayPal account AND he gets a discount for the committed subscription period.
Best,
- V.
Just wanted to bring up the fact that a fair number of WebmasterWorld supporters pay their subscriptions through paypal.. and that has to be the most web savvy group of individuals I've known.
No, I'm not provoking a debate here, just saying that what does not work for some, seems to work for others.
I'd look at Worldpay again and drop the ego, frankly. If you're going to do anything close the volume you claim, then you will be able to renegotiate a much better deal soon enough. There's obviously some concern they have, and once you address it, then it could be the perfect solution.
it's not about ego, really. I could always beg and plead <g> and get the Finance guys to see things our way (read: WorldPay's way). Paradoxically (given all the anti-PayPal talk), it's about credibility. Let me explain:
1. We're a Singapore company...
2. ... expecting that the new service will attract a significant US and UK base
3. ... and that most users in these countries may not be entirely comfortable giving their credit card information to a relative unknown (leastways, unknown in their country)
Therefore, we must use an external processor.
Now, I've been buying online since forever and - quite honestly - have never come across WorldPay before. PayPal, yes, and often, and used it (to pay), so they are (in my mind) "credible". I wonder how many others there are who've never come across WorldPay and to whom the latter processor would appear non-credible...?
Would sure appreciate others' opinions on the relative credibility of WorldPay v/s PayPal. If it's of any relevance, our service is 4.99 pm (and NO, it's NOT porn! ;-) ).
Best,
- V.
If you have significant volume, HSBC might be able to cut a deal for you.
