PayPal accounts – the advantages of the digital payment service

Over 20 million customers in the UK and 230 million worldwide have already created a PayPal account, making this former subsidiary of American giant eBay one of the most sought after online payment companies. PayPal users have the benefit of shopping online comfortably, safely, and free of extra charges, whether they’re using IKEA to kit out their living room, shopping for new trainers with Adidas, or browsing Sears for a new home appliance. The growing importance of this payment service in e-commerce makes it a necessity for every online shop owner to set up a PayPal account and expand their clientele. We’ll explain how this digital payment method works and which steps are necessary to create a PayPal account.

In 2000, the internet firms Confinity and X.com merged to create PayPal; setting in motion an incomparable online success story. Shortly after, the common idea of a simple, online payment service became the preferred payment method of choice for over half of all eBay users. This was reason enough for the management team of the online auction house to buy out PayPal in October 2002 for 1.5 million USD and remodel their in-house payment service. A PayPal account is a virtual account, containing an e-mail address, personal data, and other account information of each user. Once registration is completed, money can be sent to any supported e-mail address. If the recipient doesn’t have a PayPal account, they are notified of the payment and can access the amount as soon as they open their own account. To send money, you must first deposit funds into the virtual account in one of the following ways:

• Direct debit

• Credit card (subject to extra charges)

• Bank transfer

• PayPal CASH

PayPal will also store money for you in credit, like a bank. If you pay in more than you’re required to transfer to another account, the difference is automatically credited back to your PayPal account as a surplus on your balance. When you go to make another transaction, PayPal will first attempt to use money from your existing account balance, paying part or all of the bill, depending on how big your surplus is. In this way, you can top up your PayPal account in advance of making purchases. By linking your bank account to your PayPal account, you can even avoid using cards altogether; PayPal simply withdraws the money for purchases directly from your bank account using an instant transfer. All payments take place using a TLS / SSL encryption to protect personal information against unauthorised access. The seller or recipient is also unable to view their customer’s bank account or credit card information. For added security, there’s the option of protecting your PayPal account using an SMS security key.

The sharp rise and huge popularity of PayPal should come as no surprise: the online payment service takes on the role of mediator, creating a safe and secure base that benefits customers and shop owners alike. It also features super quick purchase and shipping, leaving other payment systems far behind.

Signing up to use the world’s most popular digital payment service opens new doors to both buyers and sellers dealing in e-commerce. Millions of online shops worldwide already accept PayPal payments, which many customers consider to be a decisive factor in choosing where to spend their money. To increase their customer base, shop operators should certainly consider this payment method, operating it as a trial period if they’re in doubt about the benefits of PayPal. It’s also worthwhile trying out the online service as a buyer, too. Registration isn’t just free, it’s also quick and uncomplicated. Here’s how it works.

1. Open the PayPal homepage and click on ‘Sign Up for Free’ to create a personal account, or ‘Explore Business Solutions’ to create a business account.

2. If you’ve selected a personal account, then simply enter your e-mail and create a password that is at least 8 characters long, including a number or a special character. If you chose to explore business solutions, click ‘Get Started’ to see the two standard options available to you. Choose your PayPal package type, either the free, ‘Standard’ package, or the fee-based ‘Professional’ package. Then enter your e-mail address and click next.

3. After this step, you’ll need to enter your personal data, including your legal first and last name, your address, and a telephone number. For business packages, you’ll have to choose a password at this stage too. By continuing from this stage, you’re accepting PayPal’s User Agreement, Privacy Policy, and E-Communication Delivery Policy.

4. In both cases, PayPal will now send you a confirmation e-mail to the e-mail address you entered. Open this and click on the activation link provided in order to complete your registration.

5. You can now log into your PayPal account and connect it to your bank account.

6. Within the next 2-4 working days, PayPal will transfer you a small cent amount, containing a numerical code in the reference. After you’ve enter this number in ‘Settings’ under ‘Confirm Bank Account’, your private or business PayPal account will be ready to use.