The wave of Digital India has now touched almost all aspects of our daily life. This aspect started working with full force with Demonetization. Also, online money transactions come under the Digital India project concerning Demonetization. The aim is to make these transactions safe and paperless, probably taking the West as the model. Besides, online payments or transfers are way more convenient than the hassle of first taking out the money, counting it, keeping it safe, and finally giving it to the concerned person. In the following article, we will learn about how does PayPal work.

What is Paypal?

Paypal is similar to what Google Pay is or what Paytm is as you may know the purpose of Google Pay and Paytm are almost the same, that is, for transferring money online with 2 to 3 clicks but both of them are different in other aspects. Likewise, Paypal is also meant for transferring money but is not the same as Google Pay or Paytm or any other company that facilitates online transactions. 


Unlike Paytm, which is an Indian association, Paypal is an American association. In any case, much the same as Paytm, it is an excellent choice to maintain a strategic distance from the paper works identified with banking like cheques. It works everywhere throughout the world. Sometimes, it charges a little expense from online dealers or different business customers as an end-result of giving them a single tick payment process. Though developed in 1998, it sold its first stock in the year 2002. This sale of shares transformed it into an altogether asserted assistant of eBay soon. As of now, it is among the top 250 revenue procuring associations in the United States.

How does Paypal Work?

Using Paypal is not complicated, provided you know the basics. I will begin telling you about the basics of how does PayPal work through the payment methods that are supported by Paypal. 

Immediate Method

Under this, the money credits to the beneficiary’s record in a jiffy. The person or the organization you sent money to can promptly move the cash to their ledger or transfer it somewhere else.

immediate method
immediate method

This method will not work unless you have already registered your card details (debit or credit) with PayPal beforehand. It is as secure as giving someone a cheque.

Electronic Cheque

In the Paypal’s or the techie language, it is called “eCheck.” it works exactly like a real cheque, except its medium is electronic.

Electronic Cheque
Electronic Cheque

When you give someone an eCheck, it will take up to 4 days to get cleared. It eliminates the need to keep a backup.

PayPal Wallet

Whenever someone sends you money from their Paypal wallet, you will receive it as Paypal money too. And it will get added in the wallet. You will also get money in the wallet if you’ve sold something on eBay. You can purchase items using that money on eBay.

PayPal Wallet
PayPal Wallet

However, if you have no Paypal money, then you can surely use the money in your account. 

Card Payment

You can also pay directly by using your Credit Card. You will have to fill in your credit card details while paying to do so. In addition to the fact that PayPal ensures you, however, your Mastercard organization likewise has your back in case you exprience extortion.

Now I will explain to you how you might send contingent money.

If the beneficiary has an email address, then you can pay for anything via Paypal. Although the “anything” has some exceptions. Here are the things that you cannot pay for:

  1. Anything that identifies or indicates betting. 
  2. Adult content 
  3. Medicines from unauthorized sources
PayPal Card Payment
PayPal Card Payment

Note – In case you intend to send installments for something that might be a bit shady, you better go through the Policy of Paypal for India or whichever country you live in carefully. 

The initial step for sending the money is signing up. After doing that, click on the tab, “Send Money.”

These are some of the best ways through which you can understand how does PayPal work.

See Also : Free PayPal Account Username and Passwords

How does PayPal money work for different purposes? 

After learning the brief about the functioning of PayPal, through the following mentioned products, you can get a hack of how does PayPal money work for serving different purposes and soothing your needs.

Products of eBay: 

When you purchase an eBay thing on eBay, you have to pay through the eBay Checkout framework. 

Products other than that of eBay’s: 

The “radio button” is the key to sending money to store or merchandise in this vast world. This method does not work for eBay products. 

Service Aids:

This method is useful for paying someone whose services you utilized. It may include florists, web developers, print outs, etc. For this, you can use any of the payment methods that Paypal supports other than the one used to pay for eBay products. 

Personal Payments:

It has the heading of the point suggests is meant for your use. Ranging from buying a bar of chocolate for your child to paying the can charge, it is useful for every task when you forget to carry real cash with you.  

These are some of the ways through which you can spend money through PayPal. Also, these ways will teach you well about how does PayPal work.


PayPal Checkout
PayPal Checkout

There are many rumors regarding online payment methods being unsafe. However, Paypal is an entirely secure app for money transactions. I hope you were able to learn how does Paypal work. 

See Also : How to Get a Free Dropbox Account