Difference Between Alibaba Trade Assurance and PayPal (With Table)

Digital Transactions have made the life of consumers a lot easy. It has impacted the way we spend our money for buying or investing. However, multiple transactional gateways have created an issue regarding their preferences. PayPal and Alibaba Trade Insurance are among such transactional mediums.

Alibaba Trade Assurance vs PayPal

The main difference between Alibaba Trade Assurance and PayPal is that Alibaba Trade Assurance is used for buying wholesale goods. On the other hand, Paypal is used for buying or selling individual items from various E-commerce stores online or offline.

Alibaba Trade Assurance is proficient in buying goods in large quantities. It is applicable for sellers around the world for buying quality products. The service on this platform is constantly available and it is regarded as a typically good transactional medium. It is a subsidiary of Chinese e-commerce giant Alibaba.

Paypal was one of the earliest transactional mediums. It is used for buying products in single or large quantities. However, you can also perform everyday transactions with this platform. This medium was founded by Elon Musk and is considered the changing point of his entrepreneurial journey.

Comparison Table Between Alibaba Trade Assurance and PayPal

Parameters of ComparisonAlibaba Trade AssurancePayPal
DefinitionAlibaba Trade Assurance is a wholesale transactional mediumPaypal is an individual digital transactional medium
RegulationsThe platform is only used for transactions across the Alibaba siteThe platform is used for various financial interexchanges
Year Alibaba Trade Assurance came into existence in 1999.PayPal came into existence in the year 1998.
FunctionAlibaba Trade Assurance is used for buying or selling goods in a large stockPayPal is used to make the transfer of money and financial currency dollar
Parent companyAlibaba Trade Assurance is a part of the Alibaba groupPayPal started as an individual platform

What is Alibaba Trade Assurance?

Alibaba Trade Assurance in digital payment or money transaction method which is available exclusively on Alibaba platforms like its shopping sites and apps. The user has to tap on the Alibaba secure payment option (which is often present at the time of check-in of products) to use Alibaba Trade Assurance.

Alibaba Trade Assurance provides multiple money processing methods ( like apple pay, PayPal, credit cards, wire) for convenience. The process of choosing the payment option is easy and safe. The user has to just select the preferred method at the time of the transaction. It also makes money transfer through digital wallets instant.

Alibaba Trade Assurance uses the latest technology to secure payments to make sure it reaches the supplier safely in time. The Alibaba Trade Assurance also developed a transaction center to help check or monitor the track of funds and reconcile flow.

Alibaba Trade Assurance provides extended support of 30 days after delivery, if a shopper is not satisfied with the product quality, the person may request for refund. The Alibaba Trade Assurance will help investigate, mediate, and resolve the claim, plus reimburse when appropriate. The online order and communication records are the basis of refund resolution.

What is PayPal?

Alibaba Trade Assurance provides extended support of 30 days after delivery, if a shopper is not satisfied with the product quality, the person may request for refund. The Alibaba Trade Assurance will help investigate, mediate, and resolve the claim, plus reimburse when appropriate. The online order and communication records are the basis of refund resolution. 

PayPal is a multinational financial payment system is created in America by Elon Musk. It helps in money transfer digitally across multiple platforms easily. Serving as an alternative to traditional paper money or internet banking practices.

PayPal act as a transaction medium between vendor and consumers. Making money transfers instant and payments easier. For which it charges a service or processing fee, a major source of revenue. It originated as a security system developed by Peter Theil and team but after the merger with x.com of Elon Musk, it slowly turned into a complete digital wallet application over time.

PayPal also provides an integrated payment gateway facility for online stores and auction sites. PayPal also helps to make international purchases or money transactions by simple currency conversion feature which allows converting currency fast (example- Rupee to the dollar) and transfer of funds fast internationally.

PayPal account can be funded directly by electronic debit from a bank account or debit card or credit card. One can set up a PayPal wallet to receive or request money from someone. Profile-specific QR codes can also be used to receive or either scan to make payments.

Main Differences Between Alibaba Trade Assurance and PayPal

  1. Alibaba Trade Assurance is used for buying or selling wholesale goods worldwide whereas PayPal is mostly implemented by individuals for financial transactions
  2. Alibaba Trade Assurance is a part of Chinese E-commerce company Alibaba group whereas PayPal is an American company founded by Elon Musk
  3. Alibaba Trade Assurance was founded around 1999 whereas PayPal was founded in the year 1998.
  4. Alibaba Trade Assurance has the policy to be used only with whole transactions on its E-commerce site whereas PayPal can be used for any financial transaction.
  5. Alibaba Trade Assurance also promises the quality of your wholesale products whereas PayPal does not give such guarantees.

Conclusion

Both Alibaba Trade Assurance and PayPal are different mediums of transaction used for different purposes. The former is associated with a compulsory site-only exchange. However, the latter deals with various independent financial transactions.

Alibaba Trade Assurance is the best fit if one is buying goods from the same E-commerce brand. The individual can do the transaction from any part of the world and receive his or her goods. Additionally, it also comes with a promise of supreme quality. Which is a benefitting factor for wholesalers and retailers situated in different countries.

PayPal is more efficient in financial transactions across various platforms. One can simply use PayPal to buy or send money to different individuals or companies. However. There is no such quality assurance that comes with this digital transactional medium. This is why individuals need to take precautions while buying from untrusted brands.

These platforms have accelerated the growth of digital transactions worldwide. Which has significantly impacted the time taken for completing financial exchanges. Thereby contributing efficiently to the modern and digital economy. 

The multitude of digital transactions has not only impacted the global economy but has also increased global buying power.

References

  1. https://www.koreascience.or.kr/article/JAKO201918053178378.page?escaped_fragment=
  2. https://ieeexplore.ieee.org/abstract/document/6382541/