How does PayPal work
PayPal works as a digital intermediary that lets you pay online, send money and receive payments without giving merchants your bank or card details. You pay PayPal, and PayPal pays the seller on your behalf.
This PayPal overview covers the three main parts of using the service: setting up an account, paying at online checkouts, and moving money between people.
- Create an account: Signing up is free and needs only an email address and a password.
- Link a funding source: Add a bank account, debit card or credit card to your PayPal digital wallet so PayPal has a way to fund your payments.
When you shop on a website that accepts PayPal, the payment follows a short sequence.
- Choose PayPal at checkout: Click the PayPal button on the retailer's payment page instead of typing in card details.
- Approve the amount: Log in to your PayPal account and confirm the total you are paying.
- PayPal settles with the seller: PayPal takes the money from your linked card or bank account and pays the merchant, so the seller never sees your financial information.
PayPal also handles transfers between individuals.
- Sending money: Enter the recipient's email address or mobile number, set the amount and confirm the transfer.
- Receiving money: Money sent to you goes into your PayPal balance, where you can keep it for future purchases or move it to your bank account.