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Why Paypal ?

Paypal has become the easiest and safest way for consumers to purchase items online. This global e-commerce website has replaced other ways to pay such as writing checks or wiring money to someone. Millions worldwide have turned to Paypal to send and receive money electronically including huge companies such as Microsoft, Walmart, Best Buy and eBay.


The idea behind this site came from Max Levchin who successfully pitched his idea to Peter Thiel in 1998. Thiel invested and became the co-founder of the site. The two joined forces and merged with one of the early competitors called In the beginning, Paypal was aimed at being a mobile device money transfer service but later broadened to include the entire market of electronic currency with a focus on online auctions. The company went public in 2002 and within months, was bought by eBay for $1.5 billion. EBay realized that their payment service called BillPoint simply could not compete. The online auction site now uses Paypal exclusively to send and receive money for their sales.

Why is it so Popular?

Paypal has become the biggest third party online payment processor. Tons of retailers offer Paypal as a method of payment and millions of shoppers depend on their services each and every day to process their online transactions. There are two basic types of accounts that people can have – personal accounts and business accounts. Both types of accounts have a number of different benefits including: free use for customers, low costs for merchants, privacy of information, customers can use Paypal without an account, security features of Paypal, seller protection, buyer protection and more.

Free for Customers

Customers can use the services of Paypal with no cost to them whatsoever. People who use Paypal to pay for an online purchase do not have to pay any sort of percentage fee per use. There is no cost to open an account with Paypal and customers using the account to buy something will never be charged anything at all. There are literally thousands of different companies both online and offline that accept Paypal as a method of payment for their goods and services. People using a personal account or even without an account at all can get all of the benefits of the service without paying even a dollar.

Keeps Prices Low

Customers are able to shop for items without seeing inflated prices. Merchants are able to keep their prices for merchandise and services low because the cost for using Paypal to accept payments is low. Businesses pay a low percentage for each transaction to Paypal. These costs are often much lower than other payment methods for merchants. This means that companies are able to keep their costs low for customers and remain competitive, regardless of what market they are involved in. Customers get the benefit of having lower prices when Paypal is offered by businesses.

Privacy of Information

Using Paypal allows shoppers to purchase things that they want without sharing any of their private information such as credit card numbers and bank account numbers. Many people question whether shopping online is safe and secure and avoid it because of the associated risks with sharing information on websites. Paypal negates this risk by allowing a customer to shop without sharing any of their financial information. Paypal keeps the information safe and secure at all times and never shares the information with anyone. All that a customer needs to give out is their email address. All of the payment details are safely stored on Paypal’s secure servers.

Use Paypal without an Account

Customers can use Paypal to make a purchase online without even having an account with Paypal. Shoppers can pay with their credit cards or debit cards without having a Paypal account of their own. This means that they can use Visa, MasterCard, American Express and Discover cards to make purchases on websites that offer Paypal as the primary payment option. Customers can even still earn credit card rewards for purchases made through Paypal. They can even use their debit cards to pay directly from their bank account funds available. Customers are not forced into having a Paypal account to use these services but they will still receive the benefits that Paypal has to offer.

Once the information is entered, the shopper will have the option of saving the information and creating an account. However, they are not required to. Even sites that exclusively use Paypal for payments (such as eBay) can be used by customers who do not have (or wish to have) an account of their own. Their financial information is still kept safe and secure and all of the buyer protection offered to account holders is still available.


Buyers can feel confident that Paypal is both safer and more secure than other methods of payment. Not only does this service mean that they don’t have to share confidential financial information with businesses, it also means that the information is safely stored and protected with cutting edge encryption technology on their servers. Transactions are monitored 7 days a week, 24 hours a day by a highly trained team of security specialists who are on the lookout for suspicious activity and fraudulent transactions.

If a transaction or charge is noticed on an account that wasn’t made by the account holder, it should be reported immediately for an investigation to be launched. The account will be secured and if the investigation shows that a customer’s Paypal account was used without permission or there was an error, the amount will be covered for each eligible unauthorized transaction. There are additional processes for reporting fraud or phishing activities for investigation by Paypal’s security team.

Purchase Protection

Paypal offers buyers a complete refund of the purchase price and shipping costs for eligible purchases that either never arrive or don’t match the seller’s description. For example, if the buyer purchased a DVD but received a book instead or never received anything at all, the purchase costs will be reimbursed. There is an easy to use dispute process for buyers to easily begin a conversation about a problem with a shipment. This kind of purchase protection allows shoppers to know that there is a well-defined process to reconcile problems.

Seller Protection

Businesses that use Paypal to receive payments also have the same sorts of protection available to them. Sellers must have proof of delivery (documentation from the shipping company) to prove that the item was sent. This is needed if a buyer disputes receiving an item. Sellers are also protected if they are sent an unauthorized payment. These protections will cover the full amount of the transaction’s payments for sellers. This is also good news for buyers who will not see inflated prices because sellers are plagued by fraud, shoplifting, repeated shipments, etc.

Paypal App for iPhone

Paypal excels at more than just security – it also offers a range of benefits that are extremely convenient. There is an app that allows people to use their accounts on the go. The Paypal iPhone app makes it easy for users to pay bills, shop, transfer money, review transactions and send money on the go. Money can be sent simply by tapping phones together that both have the iPhone app running.


The world is moving at a frantic pace and Paypal uses all available technology to allow users to keep up. Using Paypal also means that shoppers don’t have to enter their financial information again and again wasting time. All that has to be entered is their email address and PIN and the purchase is complete. Even a few seconds add up when they’re repeated time and time again.


Paypal also allows people to donate easily to their favorite charities. They even run a site called MicroPlace which offers people in less advantaged situations and countries a way to ask for a loan. Paypal users can choose to invest in a number of worthwhile projects and earn interest on their cash while helping out by micro-financing. There are also a number of ways that charities can use Paypal to increase fundraising opportunities.


At certain times, a number of businesses using Paypal offer discounts exclusively to those using Paypal to pay for purchases. There are a number of special offers available on their website that shoppers can use to save substantial amounts of money at retailers such as Nike, Toys ‘R Us, Barnes & Noble and more. Usually, the companies offer a promotional code that buyers use to gain a percentage or certain dollar amount off of the purchase.

Transfer Money

Paypal offers a range of options to transfer money to others whether they’re across the city or across the world. Even international money transfers are extremely low-cost, fast and convenient. Whether parents need to send money to kids at college or send money to family overseas, Paypal has the money transfer services that are needed. If the transfer is within the United States, it can be completed at absolutely no cost to the person sending the funds or the person receiving the funds.

Millions of people use Paypal every single day to send or receive money. The technology and security services offered by this website make it an extremely safe and secure way to pay for purchases. In fact, experts say that it is often more secure than other more traditional payment methods such as paying by cash or check.