What is paypal?

PayPal is an online service that lets you send and receive money over the internet. You create a free account, link it to your bank account, credit card, or debit card, and then you can pay for things on websites, send money to friends, or receive payments for selling items-all without sharing your financial details with the seller.

Let's break it down

  • Account: You sign up with an email and password.
  • Funding sources: Connect a bank account, credit card, or debit card to add money or pay directly.
  • Balance: Money you receive stays in your PayPal “wallet” until you move it to your bank or use it online.
  • Payments: When you buy something, PayPal transfers the money from your linked source to the seller, and the seller sees the payment as coming from PayPal, not your card number.
  • Security: PayPal masks your personal financial info, adds encryption, and offers buyer/seller protection for eligible transactions.

Why does it matter?

PayPal makes online transactions faster, safer, and more convenient. It reduces the risk of fraud because you don’t expose your bank or card numbers to every website. It also lets people in different countries send money quickly, supporting e‑commerce, freelancers, and small businesses worldwide.

Where is it used?

  • Online stores like eBay, Etsy, and many retail sites.
  • Mobile apps for food delivery, ride‑sharing, and gaming.
  • Freelance platforms (Upwork, Fiverr) to pay contractors.
  • Personal transfers between friends and family.
  • Charities and fundraising campaigns that accept digital donations.

Good things about it

  • Easy to set up and use, even for non‑techies.
  • Strong buyer and seller protection for many purchases.
  • Works in many countries and supports multiple currencies.
  • No need to share your bank or card details with each merchant.
  • Can hold a balance, so you can spend without pulling funds from your bank every time.

Not-so-good things

  • Fees can be high for certain actions, like receiving money for goods/services or converting currencies.
  • Account freezes or holds may happen if PayPal flags unusual activity, which can be frustrating.
  • Not all merchants accept PayPal, especially smaller or niche sites.
  • Customer support can be slow or limited to online chat and email.
  • Some protections only apply to eligible transactions, so you need to read the fine print.