PayPal is one of the most popular digital wallets in the world. It consistently ranks highly for security and user-friendliness. Plus, many businesses already have PayPal integrated with their digital payment processing for easy access. Discover five things to know about shopping with PayPal.
1. What Is PayPal?
PayPal is a digital wallet, which is a service that lets you pay people and receive money over the internet. Digital wallets are popular because they don’t require giving out your secure information to people on the internet. Instead, you give that information to the digital wallet company (PayPal, in this instance), and they vouch for the transaction.
2. Who Can Use PayPal?
Almost anyone can use PayPal, which is one reason it’s so popular. All you need is a valid credit card or bank account number, and you’re good to go. You don’t need to be a business either. Once you set up your account, you can buy, sell, and transfer money whenever you like.
3. PayPal and Crypto
Whenever you want to buy things online using PayPal, you need to show PayPal that you can back up your purchases with your own money. Most people use government-issued tender, called “fiat” money (fiat means “let it be done” in Latin). Governments declare that this money is legal tender, even when used digitally.
Crypto is a different kind of tender that doesn’t get its authority from the government. That means some businesses are slow to allow people to pay for things using it. PayPal is one of several businesses that accept Bitcoin as payment.
4. PayPal Is Still a Business
Even though it might seem like one, PayPal isn’t a bank. It’s a business. PayPal makes money by taking a cut whenever people receive money. This creates a cycle where customers want to buy things using PayPal because it’s convenient, so vendors choose to accept PayPal even though it costs them money to do so. If the customers had to pay the fee, the business model wouldn’t be successful.
5. Services Like PayPal
PayPal isn’t the only digital wallet out there on the market. In fact, it has many competitors, including these services:
- Apple Pay
- Cash App
- Google Pay
- Amazon Pay
We hope you’ve enjoyed learning these five things to know about shopping with PayPal. Digital wallets are incredibly popular, and they seem likely to keep growing.