PayPal is an electronic payments platform and online wallet that enables people and businesses to transfer money, pay for goods and services, and accept card and bank payments over the internet. Accessible via a website and mobile apps, the service links bank accounts, debit or credit cards, and balances held in PayPal accounts to make online and in-person transactions without sharing sensitive financial details with merchants. For the company’s primary site see PayPal.
Main features and services
- Peer-to-peer transfers: send and request funds between individuals by email, phone number or username.
- Merchant services: online checkout tools, invoicing, subscriptions and point-of-sale integrations for sellers and small businesses.
- Digital wallet: store balances in multiple currencies, link funding sources, and make payments with one account.
- Security and buyer/seller protections: dispute resolution, encryption and optional two-factor authentication to reduce fraud.
PayPal supports transactions in many currencies and is available in more than 200 countries and territories. It provides both consumer-oriented features (such as sending money to friends) and business tools (payment buttons, APIs and payment gateway services) used by online retailers and marketplaces. For guidance on transfers see transfer information.
Origins and development
The company began in the late 1990s as part of the early wave of online payment services and grew through mergers, product expansions and partnerships with e-commerce platforms. In 2002 PayPal was acquired by eBay and operated as its payments arm until it was spun off as an independent public company in 2015. Over time PayPal expanded into mobile apps, one-click checkout, and business financing and introduced branded services such as PayPal Credit and peer links.
Although widely used, PayPal is not a traditional bank; it is regulated as a payments company and works with banks and card networks. Fees, currency conversion costs and seller/consumer protections vary by country and transaction type. Users commonly compare PayPal with other payment processors and digital wallets when choosing an online payment solution.
Like many large payment platforms, PayPal has faced criticism and disputes over account holds, fraud prevention practices and fee policies; users are encouraged to read terms and follow recommended security practices. Learn more about company history and policies at company information.