PayPal dominates the digital payment scene. It has upwards of 360 million active users in more than 200 countries and facilitated four billion payment transactions in Q3 of 2020 alone.
Since 1998, PayPal has been giving consumers alternative ways to make purchases and send and receive money online. PayPal lets you pay for things online with a bank account instead of a credit card and keeps your payment information hidden from merchants. It also makes sending money easy and, in most cases, free. PayPal has essentially made checks and costly wire transfer services obsolete.
Decades since its founding, PayPal remains a top choice for online shopping and money transfers. Here’s what you need to know to get started with PayPal:
- What is PayPal and how does it work?
- Why use PayPal?
- Is PayPal free to use?
- How to make a PayPal account
- How to send money via PayPal
- Getting paid through PayPal
- Alternatives to PayPal
What is PayPal and how does it work?
PayPal is an online payment system that makes paying for things online and sending and receiving money safe and secure.
When you link your bank account, credit card or debit card to your PayPal account, you can use PayPal to make purchases online with participating stores. PayPal serves as a middleman between your bank and merchants and keeps your payment information secure.
You can also use PayPal to securely send money to friends and family as well as receive money from people. This feature is useful for splitting rent with roommates, for example, or receiving money for your birthday.
What is PayPal Credit?
PayPal Credit is PayPal’s credit line program. It’s like a virtual credit card, but can only be used to make online payments on websites that accept PayPal. Just like a traditional credit card, PayPal Credit lets you defer payments.
Why use PayPal?
When you use your debit or credit card to pay for things online, merchants can sometimes access your payment information. PayPal provides an extra layer of protection by ensuring that merchants never see your sensitive data. PayPal also uses a number of features to keep accounts secure, including end-to-end data encryption, optional two-factor account logins and email confirmations for transactions.
Easy and convenient
PayPal is now the fifth most accepted payment option after Visa, Mastercard, American Express and Discover and is available at millions of stores online. Have you ever wanted to make an online purchase but couldn’t because you didn’t have your credit card handy? You can use PayPal to make a payment via cards that are linked to your account, without having to retype your card numbers. All you need to do to make a purchase via PayPal is memorize (or save) your PayPal login information.
Is PayPal free to use?
Creating a PayPal account is free and online purchases and most personal transactions are also free. PayPal does, however, charge fees for certain types of transactions.
Fees for purchases
There are no fees for making purchases online with retailers that accept PayPal as long as there’s no currency conversion involved. There is a 3 percent or 4 percent foreign transaction fee for purchases made in a foreign currency……..Read More>>