Patreon vs PayPal: Which Platform is Best for Receiving Donations?
Whether you're a blogger, YouTuber, artist, or gamer, making a living online is a common goal. You rely on ads, product sales, and donations from your audience to support your work. But when it comes to accepting donations or subscriptions, which platform should you choose? In this article, we'll compare two popular services: Patreon and PayPal.
Platforms
Both Patreon and PayPal support a wide range of platforms, making it easy for creators to integrate their services. Patreon has an extensive app directory that includes popular platforms such as Discord, MailChimp, and Google Sheets. This makes it convenient for creators to receive payments from their patrons across various platforms.
PayPal, on the other hand, offers pre-built plugins and apps for popular platforms like WordPress and other content management systems. Additionally, PayPal has a strong presence in the mobile app and eCommerce payment space, thanks to its acquisition of Braintree. This gives PayPal an edge when it comes to mobile app payments.
Fees
Fees play a crucial role in choosing a payment processor. Patreon charges a fixed 5% deduction on all pledges, regardless of the amount. They also have payout fees, with direct deposits in the US costing $0.25. For PayPal payouts, the fee is $0.25 or 1% of the amount transferred, capped at $20 per deposit. For international creators, Payoneer offers a more reasonable fee of $3 per deposit.
PayPal's fees can be complex, especially when it comes to currency conversion charges. The conversion rate is often lower than market rates, and PayPal does not provide receipts for the conversion. Additionally, PayPal charges 2.9% plus $0.30 per transaction, with additional fees for creating and managing subscriptions.
While Patreon simplifies the fee structure by only allowing subscription-based payments, PayPal can be more cost-effective, especially for creators with higher subscription amounts.
Features
The main distinction between Patreon and PayPal is their focus. Patreon is designed specifically for creative individuals and offers features tailored to their needs. It allows creators to create exclusive content for paying members and build a sustainable source of income. Patreon encourages the subscription model and does not support one-time donations or tips.
PayPal, on the other hand, is a versatile payment processor that caters to individuals, merchants, and businesses. In addition to payment processing, PayPal offers features like multi-currency payments, invoicing, and inventory tracking. PayPal allows users to accept both donations and subscription payments.
Patreon pays creators on a monthly basis, while PayPal allows for daily withdrawals depending on the country. Patreon also provides a landing page and a community page for creators to interact with their supporters. However, relying solely on Patreon carries the risk of losing everything if any changes are made by the platform.
While Patreon provides a seamless solution for creators, some prefer to replicate its core features using a combination of PayPal and MailChimp. This offers more control over the business, but requires additional management.
Conclusion
In the end, the choice between Patreon and PayPal depends on your specific needs. Patreon offers an easy-to-use solution for regular content creators who rely on subscription payments. However, as your income grows, the fees can add up. On the other hand, PayPal provides more control and flexibility, but requires some technical know-how.
Consider your business model, subscription amounts, and desired level of control when choosing between Patreon and PayPal. Both platforms have their advantages and disadvantages, so it's important to weigh them carefully before making a decision.
Which platform do you prefer and why?
Jim's passion for Apple products ignited in 2007 when Steve Jobs introduced the first iPhone. This was a canon event in his life. Noticing a lack of iPad-focused content that is easy to understand even for “tech-noob”, he decided to create Tabletmonkeys in 2011.
Jim continues to share his expertise and passion for tablets, helping his audience as much as he can with his motto “One Swipe at a Time!”