PayPal Adding One Million New Accounts Each Month

  PayPal’s merchant services business has grown by over 40 percent year over year

The reason Paypal is growing so fast is their rates are extremely competitive if you play by their game. I really feel for the guys like Braintree who are trying to do it right but just can't compete with Paypal's rates, particularly with Paypal offering the same qual and non-qual rates.

I've used Paypal Merchant Services for several years and each year grow more fed up with the practices. Just a few include charging .5% extra if you do not include Paypal Express button in your checkout, keeping the 30-cent transaction fee on refunds, increasing the chargeback fee from $10 to $20, and not letting you export subscription cc info if you want to move your subscriptions to another provider.

I can only imagine this number increasing with their new Adaptive Accounts API. It will allow developers to create PayPal accounts for users/online customers as part of the shopping experience.

So rather than sending people away to create a PayPal account, you can keep them in your app, send the info to PayPal and (only at the very end) redirect to PayPal to verify and setup sensitive info.

You can read more here: https://www.x.com/community/ppx/adaptive_accounts

The credit card companies dropped the ball years ago by not letting their card holders accept payments from other card holders in a hassle-free manner. If they had done this PayPal would not exist, and the world of credit card holders would be able to transact business directly with each other, rather than going through a "middleman" -- and theoretically anyways, everyone's rates would be lower, too.