Monetary transactions are now made easier thanks to the advent of PayPal. PayPal provides a seamless mode of payment for its customers and merchants while also securing their financial information. With Pay Pal, you will be able to make transactions with your friends and family for free.
As an individual using Pay Pal, you will find out that it is much faster when you are shopping online because of the easy online payment process.
The online payment platform also gives merchants access to lots of perks when using its services. Also, the checkout for the customers is a lot faster and more secure and it even offers multiple integration that suits the needs of every buyer.
Furthermore, Pay Pal also protects buyers from scammers with the Buyers Protection Program. Through this, you can rest assured that your transactions are secured. In addition, there are also rewards and discounts for PayPal users to enjoy.
What Is PayPal?
Pay Pal is a platform for payment with a mobile app and website that allows payment through online transfers. It allows people to send and receive money safely either through the official website or the mobile app.
PayPal has processed more than 41 million transactions since 2019 and has an average of 34 million transactions processed daily.
Customers create an account and connect it to their bank account or a credit card. After the identification and the proof of funds are confirmed, the users can now send and receive payments online or in a store by using the Pay Pal app.
Tons of small and also large retailers both online and in the physical all accept PayPal payments. Furthermore, PayPal also has its own credit and debit cards that are branded with the Pay Pal name.
How Does Pay Pal Work
PayPal provides payment services for its users and for merchants who accept payments through PayPal. It works as a bridge between the bank and you.
People who add a bank account or a debit or credit card to their PayPal system can use PayPal for online payment and they can choose which account they would like to pay from. And all the transactions will be processed through PayPal rather than the bank.
Also, all the money received through PayPal will be in your PayPal account and it can be used for point of sale, e-commerce or it can even be transferred to your bank account.
It can take a few minutes or a few days for the transfer. You can also top up your PayPal account balance with a card or bank account.
For regular customers, PayPal provides a simple money transfer, check cashing, credit/debit cards, and e-check services. For merchants, there is a wide array of services at competitive rates without any long-term contracts.
This includes features such as Invoicing, PayPal loans, PayPal shipping, and invoicing.
It is also free to set up your PayPal account. However, there are several charges for using their service. PayPal is different if you are using it to transfer to a friend and it is also different for people using it for their business.
If you are using to receive and send payments for goods and services rendered, then PayPal will send you a tax form.
Furthermore, you can also use PayPal through the website, integrations, mobile apps, and programmatic interface. PayPal offers tools and services that support point of sale, subscription-based transactions, and e-commerce as well.
PayPal always protects the users by providing purchase resolution, and seller protection and also offers the best digital security. You can also set PayPal as a default payment mode and it can be used instead of debit or credit card.
Benefits of Using PayPal
PayPal makes online transactions a lot easier and this is why it is one of the most well-known payment services. Here are some other perks of using PayPal:
Safety and Security
Since the release of PayPal, it has focused on the protection of the user’s privacy and information. The system stores all the financial information encrypted and secure.
Having a PayPal account is like having a digital wallet. All the financial information is kept and unshared on an encrypted network. The system also provides an option for two-factor account login and email confirmations for all transactions.
Time Management
PayPal also helps businesses to get more buys with a faster checkout. It also adds to the speed of the buying process for the online buyers.
Buyer Protection
PayPal always protects buyers from being scammed with the help of the buyer protection program for all payments. PayPal allows users to ask for refunds and return shipping for qualified goods.
Integration
PayPal provides a wide list of integrations that fit every type of user need from invoicing to accounting, reporting, point-of-sale systems, reporting, e-commerce, and others.
Rewards and Discounts
PayPal also enables users to link all their credit to one account. This will also make you earn reward points that you can use for purchases on your different cards. You can also take advantage of the shipping discount.
Always Free
There is no fee for opening a PayPal account and it only requires just a few minutes. You can even upgrade your account to a business account later.
How to Sign Up For A PayPal Account
It is very easy to sign up for a PayPal account. Once you have the account you will be able to set up PayPal to make online transactions. The easy steps below will show you how to sign up for a PayPal account:
- Connect to the internet.
- Open your web browser and visit Pay Pal’s official website.
- Click on the Sign-Up button located at the top right corner of the page.
- Enter your mobile number.
- Tap on the Next button.
- Enter the OTP sent to your mobile number.
- Enter your email address.
- Enter your first and last name.
- Create a new password.
- Choose your nationality.
- Enter your date of birth.
- Enter your address line.
- Enter your city and postcode.
- Choose your state.
- Agree to the terms and conditions.
- Tap on Agree and Create Account.
- Enter your home address.
- Submit and confirm your email address.
Then you will be asked for your bank details such as your debit or credit card numbers, bank account numbers, and others. After providing all the information required you can move to the next step and set up your Pay Pal account.
How to Set Up Your Pay Pal Account
After creating a PayPal account, the next step is to set up your account to be able to make online transactions and others. Here is how to set up your account:
- Log in to your Pay Pal account.
- If you want to link your bank account, you need to search for the wallet icon located on the top bar.
- Then this will bring you to an overview of your PayPal account balance and other linked credit cards.
- Tap on Link a Bank Account.
- Then you enter your bank account details through the bank verification number.
- Enter your bank name and code.
- Enter the branch location and the branch code.
- Enter the bank account number.
- Then a verification code will be sent to the phone number.
- You will also need to verify the email address that you used to open the new account.
- Check your mailbox for the Pay Pal verification email.
- Tap on the Confirm Email Address.
if you used your mobile number to open your PayPal account, you will be requested to verify the information with an OTP through text message.
How to Make Payments with PayPal
Making payments with PayPal is very easy once you have a PayPal account. Besides, with the payment platform, you will make a transaction in a safe and secure way.
But before you can make the transaction, you need to log in to your account. Here is how to make payments below;
- Start the payment process: if you were sent a money request or an invoice through the mail, you will have to tap on the Pay Now button once you are directed to your PayPal account.
- If you want to make a payment, then you will need to log in to your account.
- After logging into your account, you will access your dashboard.
- Tap on the Send and Request button and you will be directed to the payment page.
- Choose your recipient.
- Enter an email and choose the content listed in the email section.
- You will have to choose between two options either Sending it to a Friend or Paying for Goods and Services.
- If you are sending it to your friends or family, PayPal won’t charge you any amount, however, if it is an international payment then you will be charged up to 5% of the transfer amount.
- If you are paying for goods and services, you will need to provide proof of the transaction for the funds to go through and the recipient will be the one to pay the transfer fee.
- Choose the currency and the amount.
- Select the source of funds either through a debit card, PayPal balance, or bank account.
- Once you are done, you can confirm your transaction.
And it is as easy as that. after checking the amount and the currency that you want to make the payment, you can confirm the payment, and the transaction will go through.
How to Send Money through Pay Pal
If you want to send money to another person’s account through PayPal then you need to login to your account and follow the procedures below:
- Connect to the internet.
- Open your web browser and visit PayPal’s official website.
- Tap on the Login button at the top right corner of the page.
- Log in to your Pay Pal account.
- Click on the Send and Request button.
- Choose a payment option.
- Input the recipient’s mobile number or email address.
- Enter the amount and tap Continue.
- Click on the Next button.
- Choose the mode of payment.
- Review your payment.
- Tap on Send Payment Now.
And it is as easy as that. After following the guidelines above, you will be able to send money through your PayPal account.
How to Withdraw Payments To Your Bank Account
If you want to withdraw money from your account to your bank account, you will need to login to your bank account and follow the steps below:
- Connect to the internet.
- Open your web browser and visit PayPal’s official website.
- Tap on the Login button at the top right corner of the page.
- Log in to your Pay Pal account.
- Tap on the Transfer Money button.
- Tap on Transfer to your Bank.
- If you have several cards or bank accounts added to your PayPal account, then you will be asked to choose one.
- Tap on the Next button.
- Enter the amount that you would like to transfer.
- Tap on the Next again.
- Review the amount and tap on Transfer Now to finish the transaction.
And it is as simple as that. After following the instructions above, you will be able to send money through your PayPal account.
PayPal Fees
PayPal doesn’t charge any fee for making transactions if you are using the Pay Pal balance or your bank account.
If you also want to send money to a friend or relative other than a business, then you will not be charged any amount. However, there are other transactions that come with a charge fee such as:
- If the transaction involves currency conversion, then there will be a 4% currency conversion fee.
- There is also a transaction fee of 3.5% for keyed sales in a store.
- If you are also using a linked credit card to make transactions, then there will also be a fee of 2% along with a fixed fee that is determined by your country.
International Transaction Fees
PayPal is available in more than 200 countries and several companies will have the option of making international transfers. This process will be determined by the method of payment, the country, the currency, and also if the parties involved have a PayPal account.
For international money transfer, PayPal offers two modes of payment and each of them has its own fee structure. If you are sending money directly to another Pay Pal user, you will be charged a transaction fee of 5% with a minimum of $0.99 and a maximum of $4.99.
Currency Conversion Fee
When making an international payment that involves conversion of currency, you will be charged a fee for that and it starts from 3.5% of the transaction.
Even for the conversion service, PayPal charges a fee and this starts from 4.5% and it should always be added to the cost of the total transaction.
If you are also transferring to an international receiver bank account, you will be offered the Xoom integration to assist you with the transaction. PayPal has branded debit and credit cards that also have their own fee structures and they are designed only for PayPal users.
Alternatives to PayPal
If you don’t want to use PayPal to make online transactions, there are other online payment platforms that you can use to make transactions and they include:
- Skrill.
- Google Pay Send.
- Stripe.
- Payoneer.
- Venmo.
- Square.
- Apple Pay.
- Shopify Payments.
- Amazon Pay.
- QuickBooks Go Payment.
These are the other payment platforms that are the perfect alternatives to PayPal. You can visit their official account to learn more about these platforms.
Is PayPal Free To Use?
Yes, it is. If you are making transactions with your PayPal account to another receiver, you will be able to make the transaction for no fee. If you also want to send money to your friends and family, you won’t be charged any fee. However, if you are making an international transaction then you will be charged a currency conversion fee.
