4 Min. Read

How to Use PayPal – Complete Guide

July 5, 2024

Sending and receiving payments is part of doing business. Whether you’re paying a contractor or invoicing customers, having the right payment software is essential to keeping your business finances in check.

PayPal is a well-known payment platform that allows you to receive and send money with ease. With over 360 million active users, PayPal is a popular choice among individuals and businesses alike.

Considering using PayPal in your business? Here’s what you need to know in terms of sending, receiving, and managing payments with PayPal.

Here’s What We’ll Cover:

What is PayPal?

How PayPal Works

How to Sign Up for PayPal

How to Send a Payment Using PayPal

How to Receive Payment via PayPal

Learn More About PayPal for Business

What is PayPal?

PayPal is online payment software for sending and receiving money. Individuals and businesses can use PayPal to send invoices, pay for items, send money to friends and family, and more. PayPal is available on desktop and as a mobile app so you can send or receive payments from any device.

PayPal also allows users to:

Get credit with PayPal credit cards and prepaid cards
Make online purchases and in person purchases
Send money and track activity in the mobile app
Get direct deposits, cash checks, and add cash
Streamline business invoicing and operations
Apply for business or personal loans
Integrate PayPal with other online tools and applications
Accelerate business growth with conversion tools

How PayPal Works

PayPal allows users to save their financial information for quick, safe, and convenient checkout. No need to enter your financial details every time you buy – you can simply select PayPal as your payment method and your purchase will be made securely online.

Users can receive and collect money via their unique PayPal.me link or personalized QR code to make it even easier. Merchants are able to send official invoices directly to customers, track payment status, send reminders, and more.

How to Sign Up for PayPal

It’s free to open a PayPal account simply using your name and email address. You will need to select whether you are signing up for a Personal or Business account.

Once you’ve created your account, you can then add your bank account, debit, or credit card information to your PayPal Wallet. You can then use PayPal online, in the mobile app, or in person.

Is There a Monthly Fee to Use PayPal?

PayPal does not charge a monthly fee and there is no minimum balance required to have a PayPal account. While there can be a transaction fee for merchant accounts, there is no fee to receive money from or send money to friends and family.

Here are the types of PayPal transactions that involve fees:

Loading cash using the PayPal app
Loading cash using your PayPal Cash Card
ATM Domestic Withdrawals
Over the Counter Withdrawals
Foreign Transactions
ATM International Withdrawals

How to Send a Payment Using PayPal

You can use PayPal to make online payments during checkout or send money directly to friends, family members, or merchants through the PayPal desktop or mobile app.

To send an online payment with PayPal:

Log into your PayPal account.
Click “Send and Request”.
Select the type of payment.
Enter the recipient’s email address and payment amount.
Choose the payment type and click “Continue”.
Review your payment and click “Send Money”.

If you are making a payment in person, you can do so via the PayPal app using the recipient’s email address or personalized QR code. The funds will either be taken from your PayPal account balance or directly from your bank account, debit, or credit card.

How to Receive Payment via PayPal

You can receive money via PayPal when someone sends payment to your email address or mobile number. You will then get a confirmation message letting you know you have been paid.

There are a few ways to receive payment via PayPal:

Send an invoice via PayPal on desktop or the mobile app
Send a money request to the recipient’s email address or phone number
Display your custom QR code to receive payment via mobile

Once payment is received, you can access your money from your PayPal Cash account or PayPal Cash Plus account. Then you will be able to transfer your PayPal funds to your bank account or keep the funds in your PayPal Account.

Send Money, Pay Online or Set Up a Merchant Account