What Are Depop Payments? How to Sign Up Depop Payments?

What Are Depop Payments

If you are confused about what are Depop payments, you’ve come to the right place.

Depop is a marketplace that is growing very fast since it was founded. Buyers can pay with credit/debit cards, Apple Pay, Google Pay, and other methods with Depop Payments, an in-app checkout option.

Continue reading to find out more about Depop payments.

What Are Depop Payments?

Initially, Depop used PayPal to handle almost all transactions, so any sales you made were immediately credited to your PayPal account.

Depop has switched to their own Stripe Connect-powered payment processing system. Now, rather than having to go through PayPal, your sales will be deposited directly into your bank account.

What Are Depop Payments

This change gives depop and their users—buyers and sellers—a lot more flexibility in terms of how payments are processed. The introduction of depop payments is not surprising because a major marketplace cannot always rely on a third-party payment service like PayPal. Many well-known marketplaces handle their own payment processing or are at least more involved in the process.

We’ve even seen eBay make a move to do something similar with eBay-managed payments for very similar reasons.

Also Read:

Pros of Depop Payments

  • Simpler to understand fees: You will have easier-to-understand fees, which is a benefit that should be obvious. You can use a depop fee calculator here to simplify the process, but it can still be challenging to understand at first. Most depop fee calculations require you to take into account the external processing fees that PayPal has. With depop payments instead of having to account for multiple businesses taking a cut you just get to think about one simple fee.
  • More options for buyers: Even though PayPal is a very popular service for online shoppers, it does have some drawbacks. Frequently, customers can only use their card or funds from their PayPal balance to make payments. With the switch to depop payments, depop can now accept more payment methods, including apple pay and google pay. More options will increase your chances of selling (more on this later).
  • Simpler management: Since your transactions and balance is all in one place the process of running your depop shop is made a lot easier

Cons of Depop Payments

  • Longer processing times: Payouts through Depop take time. Depop payments will cause your money to arrive in your bank account more slowly. When you send money to PayPal, it usually arrives instantly, and you can frequently use it right away. Before your money is transferred to your bank account, Depop payments take about 2 working days to process. Isn’t that a significant departure from instant? For some sellers, this could be a huge negative!

How to Sign Up Depop Payments?

How to Sign Up Depop Payments

It’s easy to sign up for Depop Payments. Go to the Selling hub in-app, then tap the banner.

Your name, address, phone number, and birthdate are the only information you will need to enter.

For more information, check out our guide on Depop Reviews.

Why Depop Payments?

  1. More ways for buyers to pay
    Depop Payments gives them more options. A buyer has a variety of payment options to choose from, including Apple Pay, credit cards, debit cards, and PayPal and Depop Payments.
  2. Sales in one place
    Every sale made using Depop Payments will first be credited to your Depop Balance before being transferred to your bank account. Sales are now much safer and simpler to manage as a result.
  3. Full protectionIf you meet the requirements, all sales that are processed through Depop Payments are eligible for coverage under our Seller Protection Policy. This means that, if you meet the requirements, our internal payment experts and fraud-detection systems will always keep you safe. Also, making claims won’t require you to exit the app.

Is Depop Payments Mandatory?

Depop payments is required for eligible sellers however you can still use PayPal! and you should because it increases your options.

Whether you like it as a seller or not, Depop payments will continue to exist for a very long time. The only other option, if you sell on Depop, is to expand to other online stores. If you want to automatically list on Vinted, eBay, Poshmark, and other marketplaces in addition to Depop, use a cross-listing app!

If branching out does not seem like something you want to do at the moment then you’ll need to accept the new system and set up Depop payments.

Also Read:

PayPal Vs Depop Payments

As a seller, will Depop payments really be better than using PayPal? While it is still new and people may run into hiccups, the most positive part of the new Depop payments is the lesser fees. Each PayPal transaction currently costs 3.49% + $0.49. If the buyer chooses to pay with Depop payments instead, the fees will be 2.9% + $0.30.

So how much is the savings? Based on the sales price, let’s compare the two fees. Since shipping costs depend on the item you’re shipping, we’ll exclude them. We will also assume that it is individual listings, rather than bundles.

Both Depop payments and PayPal will charge $0.49 and $0.30 once for a bundle you’re selling.

Takeaway: What Are Depop Payments

Fees can seriously reduce the amount that is left over for you as a seller. Reducing your shipping costs is one of the simplest ways to cut costs. Rather than shipping with Depop, choose to ship the item yourself and buy discounted postage.

Although they are inexpensive and will help you save money in the long run, a shipping scale and a measuring tape are required.

Read More:

FAQs about Depop Payments

Are Depop Payments Safe?

If you meet the requirements, all sales processed through Depop Payments are eligible for coverage under our Seller Protection Policy.

Do I Have to Pay to Set Up Depop Payments?

No, just like Depop and PayPal, it’s free to set up and you only pay a fee per sale. Discover more about costs.

How Much Does Depop Take?

What fees do Depop charge? Including shipping costs, there is a 10% Depop fee added to the total transaction amount.

How to Pay With Depop Payments?

A buyer can choose from multiple Payment options with either PayPal or Depop Payments that offers Apple Pay, credit card and debit card.

How Do Depop Payments Work?

Depop currently doesn’t have their own payment system, so all purchases go through PayPal, whether the buyer payment is made with PayPal balance or Debit/Credit card.

What is Depop Balance?

Your Depop Balance shows money you’ve made from sales through Depop Payments.

Ada Parker

Ada Parker

Leave a Reply

Your email address will not be published. Required fields are marked *