PayPal is one of the world’s leading online payment systems. Originally launched in the late 1990s, it grew rapidly and was eventually acquired by eBay in 2002. Over time, PayPal became the primary way for eBay users to pay for auctioned items. In 2015, PayPal spun off as an independent company and continues to serve millions of active users worldwide. In the United States, PayPal is a go-to payment method for many online shoppers and sellers thanks to its speed, convenience, and Buyer Protection.
To get started, go to www.paypal.com, and create a PayPal account by entering your personal information. To use PayPal for online purchases, you’ll need to add at least one funding source (such as a bank account or a credit card). For extra security, consider enabling two-factor authentication or choosing additional security questions to protect your account.
You can fund your account by transferring money from your bank account, linking a debit or credit card, or using other PayPal-supported methods like direct ACH transfers. Once you have funds in your PayPal wallet (or have a verified funding source), you can shop online, send money to friends or family, and transfer money back to your bank account whenever you need it.
When you choose PayPal at checkout, simply log in with your email address and password (or phone number and PIN, if configured). PayPal will transfer the money to the seller almost instantly, and the seller can access those funds right away. PayPal also supports mobile payments via the PayPal app, allowing you to pay on the go. The seller is notified by email as soon as the payment arrives. For most personal transactions within the US that are funded by a PayPal balance or linked bank account, no fees apply. However, if you use a credit card or send money internationally, PayPal may charge fees.
For business transactions—such as receiving payments for goods and services—PayPal will charge a fee that typically includes a percentage of the transaction amount and, in some cases, a fixed fee. You can calculate PayPal fees quickly to determine how much you’ll pay in different scenarios. Both personal and business users can hold a PayPal account at no monthly cost. Larger transactions may require PayPal to verify your identity with additional documentation before releasing or accepting high-value payments.
PayPal is a secure payment method that allows you to send and receive money without exposing your full bank or credit card details during checkout. You log in with your PayPal credentials, confirm the payment, and PayPal processes the transaction on your behalf. The seller does not gain access to your financial information—only your PayPal address and shipping details, if needed.
After placing an online order, you’ll typically see a PayPal link to complete your payment. Clicking that link takes you to the PayPal login page, where you confirm the transaction details. Once the payment is successful, the merchant ships your purchase without delay.
Once part of eBay, PayPal is now independent, but remains a popular payment option in marketplaces and online shops worldwide. While PayPal is free for buyers, sellers pay a transaction fee for each sale. PayPal’s Buyer Protection helps ensure that you receive your purchased items or get a refund if something goes wrong (e.g., the product is significantly different from its description).
