PayPal

Definition

PayPal is an online payment platform that allows individuals and businesses to transfer funds electronically. It offers a secure way to make payments, send money, and accept payments without revealing financial information.

5 Must Know Facts For Your Next Test

1. PayPal was founded in 1998 and has become one of the most widely used online payment systems globally.
2. It provides buyer protection for purchases made through its platform, adding a layer of security for consumers.
3. PayPal can be linked to bank accounts, credit cards, or debit cards for seamless transactions.
4. The platform charges fees for certain types of transactions, such as receiving payments for goods and services or converting currency.
5. PayPal's business model includes earning revenue from transaction fees, interest on customer balances, and providing various financial services.

Review Questions

• What year was PayPal founded?
• How does PayPal provide security for its users during transactions?
• What are some ways PayPal generates revenue?

Related terms

Credit Card: A card issued by a financial company giving the holder an option to borrow funds, usually at point-of-sale.

Electronic Funds Transfer (EFT): The digital transfer of money from one bank account to another.

Fintech:

Technology-driven innovations in the delivery of financial services.