You can use PayPal to transfer to and from your bank account for free and perform other financial tasks with ease. Here’s what you need to know.
First introduced in 1998, PayPal remains one of the largest online payment systems in the United States and the world. Until 2014, it was owned by eBay when it was spun into a separate company. Before and after, it has grown more significant as it has purchased other bill-paying services, including Bill Me Later, Braintree, the previously mentioned Venmo, and many more. In 2020, it became the owner of Honey, a popular online coupon site.
You can send money to anyone using only the recipient’s email address. If they are not a current PayPal user, they’ll be allowed to create a PayPal account during the transfer process. When you use PayPal to do an online money transfer, the recipient can quickly receive and access the money sent.
From a Computer
To send money from your computer:
- Log in to the PayPal website using your username/password.
- Go to Payments from the PayPal home page.
- Enter the recipient’s email address or name.
- Click Next.
- If this option is available, chose Sending to a friend or Paying for an item or service.
- Follow the additional steps.
From the PayPal app
To send money from the PayPal app for Android or iOS:
- Tap Send.
- Follow the onscreen instructions.
Yes, it’s that simple!
As we’ve previously noted, you can also use PayPal to buy things or to make payments for services rendered. Examples include buying goods and services from online retailers, paying freelancers for their services, or sending money to family or friends. PayPal also makes it possible to pay for products in-store by connecting your PayPal account with Google Pay or Samsung Pay.
Just like you would for VISA or Mastercard, look for the PayPal logo for places that accept the service as a payment option.
Things to Know
Before you send money to anyone through PayPal, there are some crucial points worth knowing. First, PayPal transactions are backed by fraud protection, 24/7 monitoring, and secure encryption technology. Second, there are no transaction fees when you transfer or send money in the United States using your PayPal Cash or PayPal Cash Plus balance or linked bank account. If you’re making a payment from a credit card, you’ll have to pay a 2.9 percent transaction fee, plus a regular fixed price that depends on the total amount.
PayPal does charge fees for international transfers. These can include transaction, funding, and fixed fees that can vary by country. You can find the current PayPal fees from the company’s website.
There’s also the PayPal Cash Card available, which lets you instantly access your PayPal Cash Plus balance. Use the card to shop online or in-stores just as you would any other banking or credit card that accepts Mastercard. You can also make withdrawals from ATMs worldwide.
PayPal remains a prominent financial services provider online. Its popularity is heavily tied to its long list of integrations with various online providers.
If you’ve never used PayPal, it’s probably worth your time to give it a try. You can use the service to transfer to and from your bank account for free and perform other financial tasks with ease.