In ancient times, when technology was not so advanced and there was no option of doing transactions online, money had to be given personally to people. This would consume lot of time and energy. With passage of time, technology got advanced and people nowadays perform online transactions. Nowadays, there are various companies which facilitate online payments. One such company is PayPal. It is a popular online payment system, that lets you shop online, without having to re-enter your information for every transaction.
PayPal first came into existence, when, it was acquired by eBay in the year 2002. It is an e-commerce company, which facilitates online payment between parties, through fund transfers. In order to use PayPal, we must create a Paypal account and link our credit or debit card to it. Once our identity has been verified, we can start sending and receiving payments using PayPal account.
Steps to create a Paypal account
- Creating your account
- Go to Google play store application and type PayPal on the search bar
- Click on Install button
- After this, click on sign up option. This will begin the account creation process
- Enter your email address and set a PayPal account password of your choice
- After this, enter your personal information in the form
- Enter your debit or credit card details (Optional)
- Enter your bank account details
- Validating your account
- Confirm your email address
- Link your bank account
- Link your debit or credit card
Various payment methods allowed by Paypal
We can make payments using Paypal by using the following methods
- Paypal balance
- Through bank account
- Debit or credit card linked to the Paypal account
- PayPal branded debit and credit cards
When we transfer money using Paypal account, money gets transferred to the concerned person’s Paypal account instantly, after which, the concerned person can instantly transfer the money to his bank account.
Advantages of using PayPal
- It is guaranteed against fraud
- Payments made using PayPal are completely secure, because your account details will not be disclosed
- It helps in saving time by allowing us to send money online without having to go personally to bank
- It is not necessary for the receiver to have a PayPal account
- When it comes to shopping online, we can save money by using PayPal discount coupons.
Disadvantages of using PayPal
- Fees charged by PayPal is high
- Since PayPal is a private company and is not governed by any banking regulations, it can freeze our account and hold our money
I would like to conclude by saying that, just like every online payment system, PayPal also has its own pros and cons. On one hand, where money is instantly credited to the recipient’s bank account using PayPal, it has also proved to be harmful for those, whose bank accounts were freezed by PayPal, without specifying any reason as such. My advice to people who are planning to install PayPal and use it as an online payment system, is to discuss with people who are already using PayPal, before you decide, whether to proceed further or not.