How is PayPal used
PayPal is used to send and receive money, shop online and manage digital payments, acting as a digital wallet between your bank account or card and the seller.
You set up and access a PayPal account through the official PayPal website. Once it is open, PayPal sits in the middle of a transaction, so an online merchant receives payment without seeing your bank or card details. For a broader PayPal overview, the main ways people use it are listed below.
- Online shopping: Pay at checkout on online stores that accept PayPal, including international shops.
- Sending and receiving money: Transfer funds to another person using the email address or mobile number linked to their account.
- Funding payments: Link a bank account, a debit card or a credit card, and PayPal draws from that source when you pay.
- Buyer Protection: Eligible purchases are covered against fraud under PayPal's Buyer Protection.
- Business and merchant payments: Merchants can accept PayPal as a payment method from customers.
How PayPal is used also depends on where you live. In India, local regulations limit PayPal to international uses, such as receiving payments for freelance or business work from overseas and buying from global online stores.
Before you start, check the following:
- Account type: Decide whether you need a personal account or a business account, as PayPal offers separate options for each.
- Country rules: Confirm which PayPal features are available in your country, since in India, for example, PayPal is limited to international transactions.