What is PayPal? The payment method explained

Disclaimer: This article is intended for US audiences.

PayPal is one of the most common payment methods in multiple countries, but what is it exactly, and is it the best option available? Today, we collaborated with Edward Howarth of DashTickets to tell you everything you need to know about PayPal and its key benefits and downsides. 

PayPal: a brief introduction

Photo by Negative Space / Pexels

PayPal is among the most well-known worldwide online payment systems and definitely one of the oldest. Created in 1998, it currently operates in almost 200 markets and still remains one of the leading digital payment platforms, despite heavy competition in the industry.

The company started with a simple idea: what if we could replace paper-reliant checks and money orders with a fully digitized solution? This concept has proven to be immensely successful — nowadays, PayPal is a comprehensive platform that enables almost all kinds of transactions: online shopping, freelancer payments, peer-to-peer transfers, subscription services, donations, invoices, etc. It is commonly used by both individuals and businesses and is known for being one of the most reliable and convenient solutions available.  

How does it work?

While financial transactions are never quite as simple as we wish they were, PayPal offers a user experience that is as seamless as possible in this niche. All that is required from the new client is to set up their account by providing their personal data and going through the bank verification process. Then the user gets access to the full spectrum of options: from sending funds via email or mobile number to dealing with business transactions and transferring money to a linked bank account. 

Combined with the option to use a mobile app for all of these transactions, this level of convenience and simplicity is what has ensured PayPal’s success — Nowadays, the platform is probably one of the most expansive in the world, covering most countries and providing a reliable service. 

Speaking of which, let’s discuss some of the benefits and downsides of PayPal.

Key benefits and drawbacks

Photo by Tima Miroshnichenko / Pexels

First of all, PayPal is among the most secure and trusted online payment systems available. Not only does it offer encryption and fraud protection, but it also provides a customer support service that can help users deal with most kinds of disputes. Secondly, PayPal is the go-to tool when it comes to international transactions — it supports multiple currencies and offers competitive exchange rates. 

However, users have to pay for this level of security and global access — PayPal introduces rather high transaction fees for certain transfers and business payments, and that alone makes it not the best choice for some companies or freelancers. After all, several other options like Stripe or Wise also provide a high level of security, but can also offer a better deal at times.

So, is PayPal good?

Yes, PayPal is one of the best online payment systems one can use. While it might include some fees, multiple individuals and businesses rely on its services daily, and that isn’t likely to change anytime soon. However, if you’re looking for a fitting payment system for your needs, we recommend checking other options as well before you make a final decision. 

ADVT. 

This article is brought to you by MindmePR