PayPal
What Is PayPal?
PayPal is an electronic commerce company that facilitates payments between parties through online transfers. PayPal allows customers to establish an account on its platform, which is connected to a user’s credit card or checking account. Once identification and proof of funds are confirmed, users can begin sending and receiving payments to and from other PayPal accounts online or through the company’s app.
KEY TAKEAWAYS
- PayPal is an online payment platform that offers individuals and businesses low-cost services.
- PayPal has been its own company since 2015.
- In addition to online payments, PayPal also offers a variety of related services including debit cards for payments, credit card readers for small merchants, and lines of credit.
- PayPal is considered a very secure method of sending payments online.
How PayPal Works
PayPal offers payment services and solutions for both personal consumers and businesses. The company allows personal consumers to shop, make payments, and transfer money with relative ease. Users need an email address to sign up for an account and must provide a credit card, debit card or bank account to complete the setup. PayPal verifies all the information to make sure the person setting up the account is the rightful owner before the service can be used.
PayPal account holders can use the company’s website or mobile app to transfer money to others using the recipient’s email address or mobile phone number. Shoppers can choose the PayPal option to complete purchases online if the retailer has the service. Transactions are completed within minutes and the company promises that transfers are available for payment or withdrawal to a bank account immediately.
PayPal also offers businesses a range of solutions for their day-to-day operations. This includes payment portals for both online and in-person transactions, business management solutions, as well as credit and financing options. Business owners must also provide an email address in order to create an account.
PayPal attempts to make online purchases safer by providing a form of payment that does not require the payor or payee to disclose credit card or bank account numbers. Therefore, money is secure, privacy is protected, and, since the customer base is so large, transactions are faster than traditional methods.