What Is PayPal And How Does It Work?

Today, when it comes to online money transactions, most Internet banking, UPI, or Paytm wallets are used, but very few people know what PayPal is. But you need to know that when it comes to using or buying online services or products, this service proves to be most useful. All over the world, and especially in India, a large number of people now use online wallets. But even today, many people are very afraid of using the services. Anyone is afraid of entering their debit or credit card number while visiting any website, which is why we thought of telling you about the most used and secure online transaction website facility. With this, you will be able to understand how to create an account with PayPal and how it works. If you want to buy a service or product without registering your credit or debit card on any website, then it is very beneficial for you there.

 While making international payments, you may face the problem that you may not get the medium to make payment. Sorting out this problem. With this, you can make international payments, and that too very easily! To receive or send money in India, we use Paytm. But, when you use a service to receive or send payments from foreign countries, whose name is PayPal,.  If you do not know what PayPal is and how to use it, then, you are at the right place because today I will give you information.

What Is Paypal?

PayPal is an American company, that has been providing online payment services all over the world for a long time. You can make, send, and receive payments worldwide through their website and Android app. Along with this, this service is also a service that users use to buy products online from websites like eBay and Amazon. Currently, about 100 million accounts are active in this, which is the first choice of people from about 190 countries. This service is available in about 202 countries across the world and also supports 25 currencies.

Nowadays, people often use it for online shopping as well as for purchasing software and services on the Internet. Users can send money to anyone who has an email address. To use it, the user just has to create a basic PayPal account. In this way, you can link your bank account with this account for free. But for credit cards, there is an additional fee of 2.9% plus currency as per the selling price.

Paytm is similar to PayPal. The only difference is that,

  1. Paytm works only in India, but PayPal works all over the world.
  2. Paytm is free, and PayPal charges you per transaction.

How does PayPal work?

The idea behind PayPal is very simple. It contains encryption software that allows financial transactions between two computers. This basic idea has today become the first way to make online payments and money transactions across the world. As you already know, this is an online payment service that allows an individual or a company to transfer funds electronically. So know here what its functions are.

  • You can send and receive payments in online auctions happening on websites like eBay and Amazon.
  • Can buy and sell goods and services.
  • to give and receive donations
  • To exchange cash with other people.
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If a person does not have a PayPal account and just has an email address, then you can send money to him. However, the person who wants to receive money must have a basic PayPal account linked to his email address. Creating its basic account is free. And by using this, many types of transactions are also available for free. If you have a PayPal account, you can deposit and withdraw funds in many ways. If you want to do quick and easy transactions, then you can add your bank account or credit card to this account so that you can deposit or withdraw money in a very short time. You can withdraw money from an ATM using a debit card. Apart from this, you can also withdraw money using a check through the mail.

Like in Paytm, you make payments by entering the receiver number. Similarly, in PayPal, you also enter the receiver’s number and make payments through it. In this case, you can make payments through a credit card or debit card. But the condition is that your credit card or debit card should be applicable for international usage.

How To Create a PayPal Account?

In PayPal, before creating an account, you have to see what the purpose of creating your account is. If you are doing personal work, it would be better for you to create a personal account.

If you want to grow your business with the help of PayPal, then a business account will be right for you. Let us know about business and personal accounts one by one.

Personal Account

As its name suggests, you can use a personal account for your work. In this case, you are allowed to add only 5 credit or debit cards. Besides, the limit of monthly transactions is set in it, due to which you cannot transact beyond those limited transactions.

Business Account

You can also do high-volume transactions in your business account, in this way, you can also collect money by connecting your e-commerce account to your account. In a business account, you can avail of the benefits of a Premier account. These accounts are given access to PayPal’s core features. In a way, it is similar to business accounts. You can add unlimited credit cards and debit cards to this.

Documents Required To Create Paypal Account

If you want to open a PayPal account, then you will need the following documents:.

  • Bank Account
  • Pan Card (For KYC)
  • Credit or Debit Card

How to create an account in PayPal

  1. Now that you have these necessary documents, choose your account type.
  2. Open the PayPal website and click on the SignUp button.
  3. After this, you have to sign up by entering your details and verifying your e-mail.
  4. After this, to send or receive payment in your account, you have to add your bank details and credit card or debit card details.

After adding your bank account to PayPal, transactions worth one or two rupees will appear in your bank account within a day or two.

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You have to find out the amount of the transactions, go to your PayPal account, go to the bank verification section, and enter that amount. After you enter the correct amount, your bank account will be verified. After verification, you will be able to receive money from your PayPal account in your bank.

Like everything, everything has some advantages or disadvantages. Similarly, PayPal has some advantages and disadvantages. Let us know about the advantages and disadvantages.

Benefits Of PayPal

  1. The biggest benefit of PayPal, I think, is that you can make international payments in it, by paying very low fees.
  2. If you make a payment to a frustrated person in PayPal, then you can file a dispute against him in PayPal, and PayPal Support will help you completely.
  3. PayPal tries to provide you with 100% security on every transaction.
  4. PayPal is a very trustworthy company.

Disadvantages Of PayPal

  1. We Indians like free things very much, which is why you will not like PayPal because PayPal is not free.
  2. If someone files a dispute against you, your account gets frozen immediately for inspection.

Top 9 Tips For PayPal Payments

As important as it is to use a PayPal account, it is 4 times more important to secure your PayPal account, unless your account is secure.  Now you might be thinking, Is it the responsibility of PayPal to keep my account secure? Yes, I agree that PayPal also has a responsibility. But, in this too, you also have some responsibilities. Which we will go through step-by-step. That is why now I will tell you, with the help of an infographic, how you can secure your PayPal account.

Paytm Vs PayPal

Paytm and PayPal cannot be compared because both of them belong to different industries. Paytm does its business only in India, but PayPal does its business all over the world, but it is more popular in India. Not found because Indian people use Paytm to transact. In Paytm, we can do transactions for free, but in PayPal, you have to pay some fees per transaction. Therefore, PayPal could not expand very quickly in India. If you listen to my experience, I also use it only when I have to get money from a foreigner.

In Short

Today we have learned what PayPal is and how it works. Along with this, you also learned how to sign up it and to create a PayPal account. Today, almost every person uses Paytm in India, but those who already know know that there is a bigger service than this that is used all over the world. There are many dangers online, but getting your account hacked is not a big deal. In such a situation, entering debit and credit card details on any website to purchase any service or product is a big risk. Now you must have understood what to do in such a situation. You must have understood very well that it is very important to be safe online.

Today you have learned how to use a PayPal account through this post. If you follow my advice, then definitely create your account in it. If you liked this article, then please share it with your friends.

Author Bio: My name is Olayinka Olalekan. I am the founder of Mighty MidiaTech Solution. You will find knowledge related to tech, content creation, blogging, and more on my page. Which will help you develop your skills.


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