We Love Paypal, We Hate Paypal

Last updated: August 26, 2013

Mau Ke Mana’s love/hate relationship with the online payment system.

Almost all Mau Ke Mana clients pay for their flight and train tickets by credit card, via Paypal.

Paypal is loved by some and loathed by others. Mau Ke Mana’s experience is somewhere in the middle. Its inherent advantages are tempered by some unhelpful shortcomings.

WEHeart LovePAYPAL

&

WE Hate PAYPAL

REPUTATION
– Paypal is generally well-known via its association with eBay and considered reputable. This is important when most Mau Ke Mana clients are first-time users.

BUT

– Paypal polarises opinions amongst experts in the field. The presence of several anti-Paypal websites suggests some truth to their concerns.
EASE OF USE
– Sending payment via Paypal is simple. In many countries, Paypal does not require people to register an account and link a credit card in advance; there is a “guest account” function for one-time payments.

BUT

– Clients often cannot use their credit card on Paypal once they are outside their “home country” (where their credit card was issued.) This is Paypal’s inconvenient way to prevent credit card fraud.
CHOICE OF CURRENCIES
– It accepts payment in many currencies. As well as quotes being in a currency that clients are familiar with, clients don’t pay any credit card fees for currency conversion.

BUT

– Paypal doesn’t offer Indonesian Rupiah and its exchange rates are often worse than a moneychanger’s. Mau Ke Mana needs to pass on these poor exchange rates to to its clients.
FEES & CHARGES
– Paypal’s fee for small payments is lower than telegraphic (international bank) transfer, Western Union money transfer, etc.

BUT

– Many clients wonder why Mau Ke Mana quotes a higher fare than the airline’s website. (See FAQ page.) In addition, Paypal’s fees for Indonesia are increasing by 0.5% on 10 September 2013.

Other Choices?
So why doesn’t Mau Ke Mana use another payment method? Because in Indonesia there are few alternatives.

As described here, few Indonesian online stores offer online credit card payment due to low credit card penetration and residents’ preference for “cash and carry” (cash payment on delivery).

Moneybookers is available in Indonesia. However, their administrative requirements to properly register a business account – reportedly a consequence of EU regulations to prevent money laundering – are extremely difficult to fulfil. Mau Ke Mana used to offer Moneybookers as a plan B for those who either couldn’t use Paypal or preferred not to, but eventually had to close its account due to these administrative issues.

2Checkout Logo Google Checkout logo molpay_logo
Left to Right: Not Suitable, Not Available, Too Expensive

Other online payment services are either not suitable for Indonesia, not available in Indonesia or significantly more expensive for little benefit.

So, for now Mau Ke Mana will stick with Paypal.



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