What is Paypal?

PayPal is a platform that has opened countless doors for 360 million users in over 200 countries. Since 1998, the brand has given companies and consumers an alternative way to facilitate business in an international economy. This makes PayPal a necessary technology for the future of commerce.

What is PayPal?

PayPal is an online payment system that enables individuals and businesses to send and receive money securely. When linked with your bank account, debit, or credit card, PayPal can also be used to make e-commerce purchases. It’s accessed via the web, mobile app, or in-person, and serves as the middleman to keep your bank data secure. 

Who Uses PayPal?

Everyone. PayPal has over 100 million users globally, with 7 million of those as businesses. It’s been established for decades and officially gained popularity as the top digital payment option for eBay. 

Now, after decades of service, PayPal is used by virtually every type of corporation and consumer. It has a low barrier of entry, unlike a bank account, so anyone can immediately sign up and start using the service.

How Does PayPal Work?

PayPal works as an intermediary between you and a bank. A user adds a bank account or credit/debit card to the PayPal system and whenever they’re making an online payment, they can select which account to debit. All transactions are processed through PayPal, instead of your bank. 

Any monies received will sit in your PayPal account and can be used for e-commerce, point of sale (with a PayPal card), or transferred to your bank account. Transfers can take a few days or minutes (for an extra fee). Your PayPal account balance can also be topped off with a bank account or assigned card.

For individuals, PayPal offers simple money transfers, debit/credit cards, check cashing, and e-check services. For merchants, PayPal has a variety of services at competitive rates, without long-term contracts. This includes features like PayPal Shipping, Invoicing, Working Capital, and even PayPal Loans. 

Setting up a PayPal account is free but there are various charges for using the service. It’s a slightly different business model if you’re an individual sending money to friends vs. a business facilitating payments. Fully expect PayPal to send 1099 tax forms if you’re invoicing and accepting payments for services/goods rendered. 

PayPal can also be set as a default payment method to be used online in place of a credit or debit card. This is what made it such a popular form of payment on eBay.

PayPal can be used via website, mobile app, programmatic interfaces, or integrations. It provides tools and services to support POS (point of sale), e-commerce, and subscription-based transactions. It safeguards users by offering seller protection, purchase resolution, and the best digital security in the industry.