What is PayPal.com?
PayPal, PayPal.com, is an online payment company that allows you to use to make electronic financial transfers without disclosing your bank account details to anyone.
PayPal is one of the most extensive online payment software in the world. It acts as an intermediary between you, the person you are sending or receiving money from and the bank. Your PayPal.com account also serves as a wallet storing your cash, credit or debit cards numbers and other bank account details safely.
Its integration with eBay made of it the majority payment method of most of eBay and other auction websites users to send and receive money from online auctions, but PayPal is now a separate business again.
With a PayPal.com account, you can send and receive money, buy or sell products online and give or receive donations with only your email address and a PayPal account password. Also, you can hold, send and receive money in 25 currencies with your PayPal.com account.
How Does PayPal Work?
Opening a PayPal account is easy, quick and free. If you haven’t opened a PayPal account but are thinking about getting one all you need is a computer, a bank account (checking or savings), a debit or credit card.
The first step is to sign up on their website. You will need to input your legal first name and last name, your Email and a password.
The second step is choosing between a personal account, a business account or a premier account. A personal account is enough if you all need is making purchases online. If you are a business owner, then you’ll need to choose a business or premier account.
The next step you will input your address (the address you want products to be delivered to), your phone number and tick the box to confirm that you agree to PayPal user agreement.
You will then receive an Email from PayPal.com verifying your account and confirming your address.
Once verified, you can start using their services whether it is buying or selling products online or sending money. You can choose to add your credit information to get access to more of PayPal features.
As a seller, you can transfer your payments to your bank account by clicking the “Transfer Money” button although it can take a long time to withdraw.
PayPal payment methods
There are many ways to fund your PayPal account to fulfill payments including:
- Instant Transfer: this is the money from your bank account or credit card that you will use to send your transfer.
- PayPal Balance: When someone sends money to your account you can keep it there and use it to purchase products online.
It is also possible to pay with an eCheck, but it takes a few extra days to finalize the transfer.
PayPal makes money in three major ways:
Benefits of PayPal
1. Fast checkouts: With PayPal.com, all you need is your email address to send or receive money. There is no need to input your information every time you want to make a transaction.
2. Secure account: You can stay assured that your bank account or credit card information stays within PayPal.com; thus there is little possibility of being hacked.
3. Secure payments: PayPal.com sends alerts for any suspicious activity on your account.
4. Flexible: Your customers don’t necessarily need to have a PayPal account to send your payments. You can also register multiple credit cards and keep personal purchases in one place.
5. You can instantly send money everywhere in the world: PayPal.com allows you to send money for free to your friends and relatives faster without paying the usual Western Union or Moneygram high fees.
6. Rewards: PayPal.com enables you to earn points and cash when you link your credit card to PayPal and use it for your purchases.
7. Increase conversion: More and more people now prefer to keep their bank accounts details private, so they tend to purchase from online retailers with a PayPal.com feature.
8. In a case where you don’t receive your purchased item, PayPal.com can help you track the seller and get a refund.
PayPal acquired subsidiaries for online payments and fraud protection, considered their history of fraud and privacy issues, to offer its users a better experience.
Acquired by PayPal in 2013, Braintree is a secure mobile and online payment platform for small E-commerce businesses. PayPal bought Braintree intending to provide better solutions for online marketplaces.
Braintree offers its subscribers a merchant account and payment gateways (a system that automates payments for online businesses). Big companies such as Airbnb, Uber Technologies or TaskRabbit are using Braintree as their online payment tool. You can accept PayPal payments with a Braintree account.
Braintree has expanded its services to more than 40 countries and supports payments from 130 currencies. Braintree doesn't require fees for foreign exchange services, and it now accepts bitcoin payments from its partnership with Coinbase.
Already a part of Braintree before its acquisition by PayPal in 2013, Venmo is a peer-to-peer mobile payment platform. The Venmo online transactions processor is an easy to use payment service, and many people consider it a social platform: Venmo is their first choice when spitting dinner bill, paying back money borrowed from your friend.
You can link your credit or debit card to your Venmo account and start sending and receiving money through your phone. You can also choose to keep money in your account, transfer your funds to your bank account, or withdraw the cash.
The good thing with Venmo is when you send money it will stay in your bank account until the recipients transfer it into his bank account. It means that you can exchange money with your friends back and forth without changing your bank account balance.
However, Venmo only operates within the US.
PayPal purchased Xoom in 2015 intending to expand its territory. Xoom is an online money-transfer system that allows sending and receiving money, to pays bills, recharge prepaid mobile phone from the US to 52 countries including China, India, Mexico, Philippines, Pakistan and more.
The Xoom money transfer service enables its clients to pay electricity, gas bills; it also offers cash pickup services to and from the selected areas. It is also a remittance provider as it allows foreign workers to send money to their home country.
Xoom charges you a fee per transfer, but the cost varies depending on your payment method. It also charges you for currency exchanges.
PayPal purchased Paydiant in 2015; it is a financial services company that provides e-Wallet services such as mobile payments, ATM cash access and more. Paydiant allows business owners to build mobile payments, and loyalty cards to increase their customer's user experience.
iZettle is the biggest PayPal acquisition to date. iZettle is a Swedish company that specializes in Financial Technology. They help business owners to grow their business faster and at a lower cost (no startup cost or monthly fees).
Their mobile application offers small businesses a variety of payment solutions, analytic tools (invoicing, bookkeeping, marketing, and sales) and funding. iZettle also provides financial technology products such as card readers, points of sales, and card machines.
All you need to use an iZettle card reader is a smartphone and a good internet connexion. The next step will be connecting your phone to the card reader through Bluetooth and take payments anywhere.
iZettle accepts a wide range of credit and debit cards, and it takes a fee of 1.75% per transaction.
PayPal acquired Hyperwallet in 2018 with the primary goal of extending its payment solutions all over the world. Hyperwallet is a payout platform that allows small businesses and organizations to send and receive money in more than 150 currencies across 200+ countries.
You can send and receive payments via prepaid cards, direct deposit or cash pickups. Hyperwallet is mostly used to pay artists, online sellers or to pay drivers fare. Companies like Expedia, HomeAway, Advocare, and others are using Hyperwallet services.
However, you will need to wait 8-12 weeks to cash out your earnings.
7. LoanBuilder - Swift Capital
A PayPal subsidiary since 2017, LoanBuilder is an online loan company that offers small business funding solutions.
LoanBuilder provides its customers with short-term (3-12 months term), interest-free and no origination fee loans; they will give you a fixed fee that you will later pay along with the money you borrowed.
You can apply up to 500.000$ of loans once you pass their eligibility test:
i. Your business operates in the US
ii. Your business is at least nine months old
iii. You have a minimum annual revenue of 42.000$
iii. You have a minimum annual revenue of 42.000$
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