PayPal is well known, widely used and generally a trusted payment processing service. This makes it easy to receive payments/donations from just about anyone, not only in the U.S. but worldwide.
I used PayPal in the nonprofit sector for over 9 years, and I have personally used PayPal for at least 10 years. From my experience, PayPal is not user-friendly for nonprofits due to the following:
--Search results oftentimes don't yield the transactions that one is looking for. This results in having to spend hours searching through hundreds of transactions just to find said transaction.
--Available reports do not meet the nonprofit's needs. Example: PayPal does not offer a report that shows all of Donor "X"s transactions in 2018, or Donor "X"s total donations in 2018. Nonprofits need this data to provide year-end tax receipts. It's very frustrating to have to compose PayPal donation reports by hand!
--Reports and search results frequently fail to load, i.e. "This information is not currently available. Please try again later."
--Changing the registered user on the account is nearly impossible. When the founder/director of my previous nonprofit passed away, we needed to remove her name from the account and put the new director's name. On several occasions, PayPal tech support simply told me "You cannot change the name on the account." .....Does it make any sense to have an active PayPal account registered to a dead person?!?
--PayPal tech support is absolutely awful. Rarely did they resolve the problems we called about.
PayPal is great for individual use (i.e. eBay sales, sending funds to friends/family), but it's lacking a lot of features and functionality for the nonprofit sector.
--It's a trusted and recognizable payment processing service. Donors feel comfortable using PayPal.
--Donors are able to easily set up recurring donations (i.e. monthly, quarterly).
--Funds can be received from donors all over the world.