What is PayPal and how it works?

                      

PayPal is an online payment solution that provides you easy and quick way to send or request money online and by using this you can transfer money (aboard) to your family, friends, and online shops and auction sites such as Daraz, eBay, or Amazon. PayPal allows you to pay for secure internet account for buying online items.

As the end-user, you just simply need to add your bank account, credit/ debit card details, and whenever you pay using PayPal, you can easily choose which of the account or cards. Also, you can set one to be a default payment method and that will be used unless or until you choose another one.

Its account holder can send money through its company’s website and mobile app to others by using the recipient’s email address or by using a mobile number. Online shoppers can choose PayPal to complete their shopping if the eCommerce retailer has the same services.

There your transactions are completed within a couple of minutes and the PayPal promises that transfers are available for payment/withdrawal to a bank account immediately.

It also offers you a business range of solutions for their day-to-day operations this includes payment portals for both online and in-person transactions, business, management solutions, as well as credit and financing options. The business owners must provide them their email addresses in order to create an account.

History of PayPal

 PayPal was originally launched byPeter Thiel, Max Levchin, and Luke Nosek in Dec 1998 by confinity (confinity Inc was a USA based Software Company based in Silicon Valley, it was founded in December 1998 by Max Levchin, Peter Thiel, and Luke Nosek, initially as a Palm Pilot payment & Cryptography company). The first time this company's electronic payments system was launched in 1999 & in March 2000, confinity merged it with X.com, it was an online financial company founded by the CEO of SpaceX Elon Musk in March 1999.

Musk & Harris, then-president and CEO of X.com, disagreed about the potential future of the money transfer business and after bill harris left the company in May 2000. After some months In October 2000 musk decided that X.com would terminate its other internet banking operating and focus on PayPal. Elon musk was replaced by peter Thiel as CEO of the company which was renamed PayPal in 2001 and went public after a year in 2002.

Special consideration

It is an online payment platform, not a bank. It is still subject to many of the same consumer protection regulations by which is governed.

Types of PayPal fees

If both parties have PayPal money can be transferred for free internationally, but for merchants, it’s different from its personal account transfer and their charges between 2.7% to 3.2% plus a flat rate of 30 cents on the transfer of $100 in standard fees for merchants selling goods and services online, for instance, Daraz, eBay, and other private businesses that use PayPal

Benefits of PayPal

the company offers its own credit card through Synchrony Bank and its approved applicants are supplied with MasterCards branded with the PayPal name.

What is PayPal credit?

the company started its own credit card, where customers can pay for items using PayPal, but pay from them later which is like a credit card although you do not need an actual card. Now it currently charges a purchase the

interest rate of about 17.9 percent per annum, but as an incentive, you get 0 percent interested in purchases of over 99 Euro for 4 months.

Conclusion:

PayPal is an online payment solution it is not the bank, which provides you a way to transfer your money to another person for instance your family, and friends or for business purposes. It is a payment aggregator and has its own gateway called Payflow.