Whether you are a blogger , YouTuber , artist or a gamer , the affair that is common between all you originative minds is making a living online . You run advertizement , sell products , and accept contribution from your referee , viewers , and fans for your work . multitude care to show their appreciation by pay originative folks for their endeavor which is nerveless . Some of you use a subscription good example with a members only region where content is lock behind a paywall .
One is Patreon that was develop by a player and has since then become a popular way to accept subscription payments for paywall content . The other is PayPal , a behemoth of a fintech company that was work up to process defrayment , including but not limited to subscriptions and donations / baksheesh . problematical call ?
Patreon vs Paypal
1. Platforms
If you are a blogger , prospect are high that you are using WordPress , if you are a vlogger , YouTube would be gamey on your list , and if you are an app developer , it ’s either Android or iOS . Both PayPal and Patreon support somewhat much all the popular platforms with custom-make plugins and script that you may use out - of - loge .
Patreon has anapp directorywhere you’re able to find some of the most popular weapons platform listed including Discord bots , MailChimp lists , and even Google Sheets . This create Patreon soft to utilize across the control panel , and you could find money from your patrons moderately much everywhere .
Also Read : How Much PayPal Charges Per Transaction in India
PayPal is equally popular if not more and has pre - build plugins and apps for most chopine including WordPress and other message CMS , web site , popular email subscription services like MailChimp , apps on both Android and iOS , and so on . This is where PayPal takes the lead .
Youcan’t use Patreon in your mobile appsto receive payments which is sad learn how apps are used by citizenry for pretty much everything today . PayPal boughtBraintreewhich specializes in app and eCommerce payments .
Both have apps uncommitted for Android and iOS platform with a very beautiful and functional web interface .
ensue : Tie
2. Fees
I gauge this is what it all boils down to . As a Divine , you want to utilize a payment processor that is reliable , rock-steady , well-situated to use and affordable . Fee structure matters but this is also where thing get complicated . You see , if you are using Patreon , you could collect subscription payments from fans and followers , but you will need a payment processor like PayPal or Payoneer to disengage it to your bank account .
US Divine have the option to withdraw money from Patreon via direct bank deposits but international creators will need a payment central processor . We will see how it work and why mass still use Patreon over PayPal in Features plane section below .
Patreon charges afixed 5 % deductionirrespective of the amount pledged to you and the full amount that you make each calendar month . Easy to translate . Then there are payout fee . Direct Deposits in the US will be $ 0.25 . For PayPal payouts , it is $ 0.25 or 1 % of the amount remove capped at $ 20 per deposition . Payoneer seems to be more reasonable at $ 3 per deposit for international Maker .
Patreon uses Stripe and PayPal to process payments from your patrons account to your Creator ’s Balance news report . Patreon batch these transactions to subdue the entire fees paid by a patron but it will vary greatly depending on who patrons are paying and what the amount is .
Simply put , more patrons give small amounts go to high processing fee and less number of patron compensate higher amounts will guide to a low processing fee . Click herefor always update fee structure .
It is important to mark here that Patreon only allows , and even encourage , the subscription model meaningyou can not accept one - prison term donation and pourboire . This is how it was built to be so I do n’t see them changing it any sentence soon either .
PayPal ’s fees anatomical structure has always been complicated and up-to-dateness conversion charge that are not refer but are significant has been well - document on the web . Let ’s see . PayPal charge 2.9%+$0.30 per transaction . If you are receiving money in a strange currency , you pay afixed feewhich is normally under $ 1 .
The trouble takes place when you ask PayPal to exchange it to your area ’s national currency . The conversion rate is always around 2 - 3 % less than the mart rate and PayPal never ply any sort of receipt for the same . I can support this in person because I have used PayPal to receive money in USD and converted it to INR every month . It can quickly add up . Plus , there is the stock $ 10 / month for make and managing subscription usingVirtual Terminal or PayPal Payments Pro .
So , if you are using Patreon , you are pay twofold fees . 5 % to Patreon and then some to the payment processor ( normally another 4 - 5 % ) . While on the other hand , as your income maturate , PayPal can be actually cheaper than Patreon , particularly when your subscription amount is over $ 10 . Then PayPal ’s 2.9 % will seem miserable compared to Patreon .
Also Read:6 Best PayPal Alternatives
Results : PayPal wins .
3. Features
The basic distinction between Patreon vs Paypal is that ; Patreon provides an easy way to accept the subscription - base contribution . While PayPal is a defrayal CPU for individuals , merchandiser , and business including company like Patreon . In addition to providing payment processing , PayPal also allows exploiter to accept donations and subscription payments .
Patreon was build from the ground up for creative folks as a way to bear subscription on their rank sites , communicate with their followers , and build a sustainable source of income . As such , using Patreon , you’re able to make posts or subject that is only seeable to your paying member or to everyone in general . Patreon offers Jehovah a agency to reward their following with exclusive subject hidden behind the paywall . They need to make a subscription - based crowdfunding platform .
So what about one - time payments ? If you are hung up on it , here is a way . Many Patreon users recommendBuy Me A Coffeeto take over one - metre payments from their fans . you may also employ PayPal for the same .
PayPal , on the other handwriting , offers features like the ability to welcome or make payments in multiple currency , use the Bill Me Later feature where emptor can corrupt and yield by and by through a commission on their course credit card , create invoices , and track stock list . As you may see , PayPal has a very unlike business modelling .
Another key distinction is thatPatreon pays monthly while withdrawal in PayPal can be made day by day , depend on the country you live in . This is important for those creators who do n’t make enough and are cash - strap . Patreon will also give up substance abuser to create a landing page , a sort of profile , that will assist new fans understand what you are put up , how it is unique , and how much it will cost them .
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Creators still prefer Patreon over individual payment central processor like PayPal and Stripe because it carry the guesswork out of the equivalence . There is no planning needed . You just open an account and start creating . Focus on what you do best . For 5 % military commission , Patreon will take care of defrayment , chargebacks , failed payments , and payout without you having to lift a unmarried finger . It is also very popular and familiar which instills a feeling of trust and conversance .
Results : Patreon gain
Patreon vs Paypal: Which one to choose?
Here is the summation . Patreon is slightly expensive for creators because you are paying double fees . One to Patreon and one to your payment mainframe , but Patreon offers an out of corner solution that simply form with little to no know - how . More suitable for even cognitive content creators like YouTubers and writer who are looking for subscription payments , but as you make more , you will pay more .
Which one do you prefer and why ?
