PayPal customers are loyal, with 81% preferring it for online transactions, and 79% using it whenever they can. This is also common for PayPal Me, PayPal’s P2P offering, which is favored among consumers who have tried more than one P2P app (42% prefer PayPal Me compared to 19% who prefer their bank’s P2P payment service). Banks, however, do have some strengths when compared to PayPal – notably in direct deposit, ease of accepting payments, card selection and ease of use.
Despite its overall high marks, PayPal fell short of its competition on overall trust with financial information (80% of consumers trust their primary bank; only 55% said the same about PayPal). And the majority of consumers (56%) are generally unwilling to direct deposit money into their PayPal account. There is a nuance, however: While banks win for overall trust, 69% of consumers say they believe PayPal’s technology is better at protecting their financial information.
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