According to our idea, the TU Overall Score indicator should answer the biggest question of all: “Can I trust this broker with my money?”. The scores range within 0.01 – 9.99 (the higher the indicator the more trust the broker has). More details
- All developed countries
- No
Currencies:
- USD, EUR, GBP and 22 other currencies
cryptocurrencies:
- Yes
Our Evaluation of PayPal
According to our idea, the TU Overall Score indicator should answer the biggest question of all: “Can I trust this broker with my money?”. The scores range within 0.01 – 9.99 (the higher the indicator the more trust the broker has). More details
Brief Look at PayPal
PayPal is the first modern-type electronic payment system, established in 1998. The service allows users to shop all around the world and send and accept money transfers between the banks in different countries. PayPal Review shows that the system works with 25 currencies and it has its own PayPal Card that is a Mastercard you can use to pay offline. The service has a simple account registration system that requires only your email. You can connect a card from any bank to your account. The system does not charge a registration or service fee. The sender is not charged with a transfer fee. Instead, the recipient pays the transfer fee (depends on the amount and region).
- The service is simple to use. All you need is your email and password to pay online or make a transfer from your mobile device.
- All transactions are instant or almost instant; it is the faster method of money transfers and paying for purchases.
- Interaction between the buyer and the seller is carried out through PayPal accounts; the system does not use bank card data.
- In order to make and receive transfers, you need to be registered on PayPal. Nothing else is required.
- The service allows you to request a refund for return shipping costs. Up to 12 returns per year are allowed for an amount that depends on your country of residence.
- The service is free; the system does not have premium accounts; the transfers inside the country are free.
- PayPal Card allows you to pay offline anywhere where Mastercard is accepted.
- The system provides personal information of users to third parties, which is required for processing transactions, making payments and transfers.
- Online stores using PayPal pay a fee for receiving transactions (when clients pay for their purchases).
- Personal information of users is stored on U.S. servers, the physical location of which is not disclosed.
TU Expert Advice
Author, Financial Expert at Traders Union
PayPal offers a versatile electronic payment system, supporting personal and business account types with currency conversion, savings accounts, and cryptocurrency transactions. Its services are accessible in over 180 countries with 25 supported currencies and instant or near-instant transactions. PayPal users can benefit from the convenience of the Mastercard-linked PayPal card for offline purchases, and enjoy cashback and the ability to make installment payments.
However, PayPal has some drawbacks, including fees for recipients of payments and potential privacy concerns due to personal information storage on U.S. servers. This makes it less suitable for users prioritizing complete data privacy. Overall, PayPal is a suitable choice for those seeking a robust and flexible payment system, especially if immediate and global transactions are a priority. However, traders concerned about fees or privacy may want to consider alternatives.
PayPal Summary
| 💼 Main types of accounts: | Personal and Business |
|---|---|
| 💱 Multi-currency account: | Yes (25 currencies) |
| Deposit terms and conditions: | Savings account at 0.60% APY |
| Loan terms and conditions: | No |
| ☂ Deposit insurance: | Depends on the transaction type |
| 👛️ Savings options: | Savings account, pots, setting targets with alerts, cash back |
| Types of payment: | Electronic transfers, PayPal Card |
| ➕ Additional features: | Purchase/sale of cryptocurrencies |
PayPal electronic payment system does not set limits for its clients. It does not matter in which country you reside or where you are physically, as your PayPal account exists on a remote server and you can access it from any device connected to the internet. The same applies to transfers; they are available in all regions of the world. However, not that PayPal supports only 25 currencies. If the payment currency does not correspond to the account currency, the transfer will be converted automatically at the current market exchange rate (this feature is set in the account).
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PayPal Commissions & Fees
No fee is charted if a user shops online or makes a transfer. If the user receives a transfer or payment for goods/services provided, he/she pays a fee that is determined by his/her region. You can calculate the fee in advance on the PayPal website or app (Consumer Fees and Merchant Fees menus).
The fixed fee for commercial transactions depends on the currency, for example USD 0.49 for the US dollar. The fixed fee for QR code transactions for USD 10.01 and higher also depends on the currency, for example USD 0.10 for the US dollar. If the QR code transaction is lower than USD 10.01, the fee is lower (USD 0.05). These are the fees for the U.S., they are different for other regions.
Note that there are special fees for donations and other special transfers. You can see the fees in the Fees section on the PayPal website. The section features information about all types of consumer and merchant fees that we haven’t mentioned here.
No fee is charged on deposits of funds from a bank card/account to the PayPal account, if no conversion is required (the same applies to withdrawal). The spread on conversion is usually 3% or 4% depending on the type of transactions, but other values are also possible. In some cases, for example when interacting with a non-linked account, a 1.5% withdrawal fee may be charged.
The fees are fixed for buying and selling cryptocurrencies and are based on how much crypto you buy or sell. The minimum transaction amount is USD 1. If the transaction amount is up to $4.99, the fee is $0.49. The fees change from the fixed to percentage, if the transaction amount is higher than $200. Then, the fee is 1.80% and 1.50% if the transaction amount is higher than $1,000.
Users who actively use their PayPal account, making many transactions, need to consider the limits. For example, you cannot instantly transfer more than USD 25,000 to your bank account. The limit on instant transfers to a card is USD 5,000 per one transfer, not more than USD 5,000 a week, and the monthly limit is USD 15,000.
Traders Union also compared PayPal’s fees with similar types of fees on other e-payment systems.
| FastSpring | 2Checkout | PayPal | |
| Payment commission | 5.9% + $0.95 | 3.5% + 0.35$, 4.5% + 0.45$ or 6% + 0.60$ per transaction | $0.49 |
| Deposit commission | 2% (max $20) | Depending on the payment method | No fee |
| Withdrawal commission | $5 | Depending on the payment method | 1.5% |
| Commission for international transfers | 8.9% | Depending on the payment method | Depend on the transaction type and region |
PayPal electronic payment system is free and universal. It operates in all developed countries and allows users to shop online and make transfers with the majority of popular currencies. At that, the fee for a standard transfer is charged on the recipient and is objectively low, compared to the fees of other systems. PayPal also provides a possibility to buy and sell cryptocurrency, open a savings account, as well as several features that are standard for modern neobanks.
Investment Options
PayPal Review shows that although the payment system strives to introduce the most popular features of modern mobile banks, it still primarily remains a means of remote payments and transfers. Therefore, PayPal offers only one option for growing capital – a savings account.
A user can use the service’s mobile app at any time to transfer money from the card(s) linked to the account to an internal savings account that offers 0.60% APY. Note that the rate is fixed, and users are not required to fulfill additional conditions to qualify for higher benefits. Also note that PayPal is not a bank. Banking services in PayPal are provided by Synchrony Bank, a Member of FDIC.
The funds are not blocked on the savings account; it can be fully or partially withdrawn at any time. You can always replenish the account with a direct transfer from any linked card. The service and its partner bank do not charge any additional commissions and fees. The system is 100% transparent.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of the deal and all the steps from signing up to withdrawal of profits.
Contacts
| Foundation date | 1998 |
|---|---|
| Regulation | FCA |
| Official site | https://www.paypal.com/ |
Comparison of PayPal with other e-payment systems
| PayPal | Volet.com | Payeer | Skrill | Remitly | FastSpring | |
| Supported Countries | All developed countries | 150 countries | 127 countries | 200 countries | Most developed countries | 200 |
| Supported Currencies | USD, EUR, GBP and 22 other currencies | 9 currencies (USD, EUR, GBP, RUB, BRL, TRY, UAH, KZT, VND) | 3 fiat currencies (USD, EUR, and RUB) and most cryptocurrencies | 40 currencies | Most currencies | 20 |
| Support for cryptocurrencies | Yes | Yes | Yes | Yes (deposit) | Yes | No |
| Subscription fee | No | No, only transaction fees | No, transaction fees only | No, only transaction fees | No | 8.9% or 5.9% +95 cents per transaction |
| Payment acceptance equipment | Upon receipt of payment/transfer, depend on the region | No, only software | No, online only | No, only online | $2.99 + 0.5% of the amount for the Economy or 1.5% of the amount for the Express option | No, only software in the form of SaaS |
User Satisfaction i