The main benefits of using PayPal over a credit card is it is easier to make a transaction, and it keeps the user's financial information more secure, according to Paypal's website. Paypal also offers an extra layer of protection against fraudulent charges.
PayPal makes it easier to make payments online by storing the user's financial information, notes its official website. Instead of having to put in a credit card number at every site, sites that accept Paypal allow the user to pay for the purchase by logging into Paypal with an email and password. Paypal then completes the transaction. Because PayPal keeps track of the user's financial information, such as credit card numbers or bank account numbers, without passing it on to stores, it keeps the user's financial information more secure. There are multiple ways to pay so the user can choose each time the type of payment to use.
Also, PayPal, like credit card companies, protects the user against fraudulent charges, explains Marsha Collier for "eBay Business All-in-One For Dummies, 3rd Edition." Although the purchase must abide by PayPal's eligibility rules, if an item does not arrive after a user pays for it, PayPal investigates the charge and pays the user back if the company finds the claim to be true, according to its website.