What is PayPal and how does it work?
Pocket-lint) - PayPal has been in the mobile payments business for well over a decade.
It's is an online financial service that allows you to pay for items using a secure internet account. You simply add your bank account, credit card or debit card details and whenever you pay using PayPal, you can choose which of your cards or accounts it pays with. You can also set one to be the default payment method and that will be used unless you choose otherwise.
In addition to paying for items using PayPal, you can also receive money through the service. Any money received sits in your PayPal account and can be used when paying for something, with the balance topped up by your assigned cards or bank account.
Alternatively, you can transfer the money to one of your assigned bank accounts or cards.There can be a fee applied when you receive money to your PayPal account. For example, if you sell an item on eBay.
Why use PayPal?
While there are plenty of online payment systems these days, such as Apple Payand Google Pay, PayPal offers a few additional benefits that others might not.
To begin with, its age means it is well established and widely accepted, even from smaller etailers. You will find a pay by PayPal option on thousands of websites that do not offer the same for Apple Pay or other digital financial services.
Its buyer protection safeguards will also ensure you get a refund if an item you buy online doesn't arrive or doesn't match a seller's description. This is especially useful when purchasing items on eBay, where you do not usually have shop guarantees.
How do I get a PayPal account?
It's easy to sign up for a PayPal account. You head to PayPal.com and click the Sign up button. It'll ask if you want to sign up for a personal or business account and away you go. Don't forget to have your bank, credit or debit card details to hand though.
How to pay with PayPal?
PayPal works online and in stores through a browser or mobile application. There are dedicated apps for Android and iOS.
When paying online, you just need to look for the PayPal symbol and check out by following the simple instructions on screen. The apps do more though.
Thanks to many partnerships with stores and restaurants in your area, you get different options of how to pay for products, food or petrol, even order ahead to beat the queues in some food establishments and coffee shops. The app shows you a list of all the vendors nearby that accept each of the different PayPal options.
What is PayPal Credit?
Last year PayPal started its own credit service, where you can pay for items using PayPal but pay from them later. It's a lot like a credit card although you don't require an actual card.
It currently charges a (variable) purchase interest rate of 17.9 per cent per annum but as an incentive, you get 0 per cent interest on purchases of over 99 Euros for four months. So if you pay it back within that time, it won't cost you more than the original purchase price.