Q:

What is PayPal?

A:

Quick Answer

The PayPal Press Center describes PayPal as an eBay Inc. company that provides a fast and safe way to pay and get paid. It offers an online payment service that allows people to send money without sharing financial information and pay using their account balances, credit cards, bank accounts or promotional financing.

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What is PayPal?
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Full Answer

PayPal was founded in 1988, and the PayPal Press Center claims that it has more than 148 million active accounts across 193 markets as of May 2014. The firm processes more than 9 million payments daily.

Ed Grabianowski and Stephanie Crawford explain on HowStuffWorks that PayPal uses encryption software to enable people to perform financial transfers between computers. This means that individuals and businesses can transfer funds online. The most common uses for PayPal include sending and receiving payments for online auctions through eBay and other websites, buying and selling goods and services, making and receiving donations, and exchanging cash with another person.

PayPal makes it possible to send funds to anybody using only an email address, as explained by Grabianowski and Crawford. The recipient must have a PayPal account associated with the email address to receive the funds. PayPal offers free basic accounts and financial transactions, including purchases from merchants that accept PayPal payments. A PayPal user has different options to add and withdraw funds, such as adding credit cards or a bank account.

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Related Questions

  • Q:

    How secure is signing in to PayPal?

    A:

    Signing into PayPal is highly secure as PayPal uses a Secure Sockets Layer protocol with 128-bit encryption, which is the highest commercial level encryption. Transactions are monitored from start to finish around the clock to detect and prevent fraud. Additionally, prior to logging on, PayPal's servers check whether the browser uses SSL 3.0 or higher to ensure confidential transmission of information.

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  • Q:

    How do you apply for Paypal?

    A:

    The first step in signing up for a PayPal account is to click the Sign Up button on the company's website and pick either a personal or business account. After making the selection, follow the screen to fill out necessary information such as your email address, and create a password.

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  • Q:

    What are the disadvantages of PayPal?

    A:

    While there are many advantages to using PayPal, the company and its services also have its disadvantages, including its practice of putting a hold on account funds without notice. There are also some fees associated with using PayPal, which some consumers consider a disadvantage.

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  • Q:

    How do I use PayPal?

    A:

    In order to use PayPal, the company requires that consumers first set up a free account. PayPal states that it only requires an email address and a password to sign up for a free account, and that personal information is not required for the initial account setup.

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