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How To Pay Online Using PayPal for Digital Products, Goods & Services

You must have heard about PayPal- the name alone indicates that it can be used to make payments. You must therefore want to know what it is, and how it works, so that you can determine whether it is something you can conveniently use to make payments and purchases, and to what extent you can rely on it.

In this piece, we will be looking at how to use PayPal for online transactions but first and foremost, we will identify exactly what PayPal is? Why should PayPal be used for online payments? Is PayPal free? How to open a PayPal account, and how does PayPal work? What are the advantages of using PayPal? And lastly step by step guide on how to pay online using PayPal, these are what we are to consider in this article.

How To Pay Online Using PayPal for Digital Products, Goods & Services 1

What Is PayPal?

PayPal Holdings Inc. is an America multinational financial technology company operating an online payment system in the majority of countries that supports online money and serves as an electronic alternative to traditional paper methods such as checks and money order. This organization works as a payment processor for online sellers, auction sites and many other commercial users, for which it charges a fee.

PayPal was established in 1998 as a small company and went viral in 2002 through an IPO. It also became a wholly owned subsidiary of eBay, one of the biggest online marketplaces in the world, as Ebay sought to consolidate on the advantages it brings. The company was ranked 134th on the 2021 fortune 500 of the largest United States of corporation by revenue and it became an independent company. Now let’s look at why PayPal should be used for online payments.

Why PayPal Should Be Used For Online Payment

PayPal allows you to make payments for items using your bank account instead of credit card, and keeps your transactions secured from merchants. It allows you to securely separate funds intended for online purchases from your real money.

It makes sending money easy and convenient, can also be used in sending money to friends, families and for business purposes. When you make transactions with your debit or credit card, merchants can access your payment history but if you use PayPal for payments online, it provide extra protection and also uses a number of features like end to end data encryption, two factor account login or email confirmation to prevent merchants from accessing your payment history.

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PayPal is easy and convenient even if you did not have your credit card with you, payment can still be done using cards that are linked to your account without inputting your card numbers, just save your PayPal login information and you are good to go.

Is PayPal Free To Use

Opening a PayPal account is absolutely free. Making purchases online and most confidential transactions are also free, PayPal charges for some specific transactions. There are no charges making payments with vendors that accept PayPal but if there is currency conversion expect  a 3 percent or 4 percent fees, While withdrawing and you want instant access, you will pay a fee if $1.50 fee per withdrawal.

How To Open A PayPal Account

PayPal operates on two accounts; personal PayPal account and business PayPal account, so before opening an account, you have to make choice on the account to open. In personal account, it is used in sending or receiving money for friends and family, make personal payment and it allows you view your transactions history while business account allows you to send invoices to your customers and lots more. Here is a step by step process on how to create a PayPal account:

  • Go to or download the app from App store or Google play.
  • Click the blue button (Sign up).
  • Select the choice of account (personal or business).
  • Add your phone number (you will instantly receive a security code).
  • Enter your first and last name, email address and a secure password.
  • Enter your mailing address and agree to PayPal privacy policy.
  • Lastly, add a card (debit, credit card or bank account).

How Does PayPal Work?

Now let’s see  how this amazing app works, it does not need much stress, you simply link your bank account, credit card or debit card to PayPal account, so whenever you make payment using your PayPal account, the money is deducted from your linked account.

Advantages of Using PayPal

There are a lots of advantages using PayPal but I will mention but just a few of it

  • Protects your payment history from merchants.
  • It’s safe and reliable.
  • It’s free to use.
  • You can give customers confidence by integrating.
  • You can make purchases without cards.
  • No worries for international fees.
  • Gives opportunity to use your bank account for payments.
  • Allows transfer to other PayPal accounts and lots more.
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Remember that PayPal operates on two accounts (personal and business account)so i will be showing you how to make payments on both and remember that personal account can be used for send money for friends and family and make personal purchase while business is for goods and services, send invoices an lots more.

How To Send Money Using PayPal For Friends And Family

  • Open the PayPal app or your online account
  • From the app or online account, click on the “send” button
  • Input the name, email address or phone number of the person you want to send money to.
  • Enter the amount to be sent ( you have an option to input messages why the money is been sent, eg happy anniversary, happy birthday and lots more)
  • You will be asked what is the payment for (friends and family, good and services) remember to choose the right option because the choice determines the fee to be paid by the receiving account.

How To Pay Online Using PayPal For Products And Services

  • If the vendor has QR code, click scan/pay and get started.
  • If there is no QR code, tap on the send button
  • Enter the name, email address or phone number of the person you want to make purchases to.
  • Enter the amount to be sent (State the reason fir payments e.g. for clothes, for tiles, construction and lots more)
  • PayPal will ask you reason for payment (friends and family, goods and services) Ensure you make the right selection of choice because this will determine the fee to be paid by the receiving account.

Receiving Payment Via PayPal

Are you bothered on how to receive money on PayPal? In as much as some countries have been restricted from receiving funds via PayPal which includes Nigeria, countries not on the list can receive funds from corporate bodies, friends or family. Oftentimes when dealing with corporate businesses, receiving funds via PayPal requires will require an invoice from customers generated on PayPal, it’s so easy, always remember that there are different merchant fees involved in some payments options, and ensure sure to understand the best choice for you.

  • From the app or online account, click request button
  • From there, you can make a choice from the options
  • Create invoice
  • Split a bill
  • Create link to share
  • Enter the email of the person paying you.
  • The person( your friend) can also input payment through PayPal to send you money
  • When the person sends you money you will be notified through email or PayPal app(the money will be deposited in your PayPal account)
  • The money can be kept in your PayPal account or transfer it to your bank account
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Other PayPal Alternatives

While PayPal is a great product driven by intelligent thinking, and the mindset of problem solving; there are a few products out there that can be used to complement your PayPal account, or that can be used to substitute PayPal; depending on your particular needs at any given time. Some of these alternatives are given below.

  • Cash app
  • Google pay
  • Shopify payment
  • Square


Cash app also allow users to transfer money using the mobile phone app, it is available in the US and UK, it enables the selling of stocks, bitcoin and transfer of money


Google pay is a digital wallet platforms which enable the transfer of cash, it enables users to makes transactions with their watches, tablet and android phones


It is the easiest means of accepting payment online and it also prevent the hassle of registering with a merchants account with a third party payment provider.


Square POS gives users the opportunity to pay tips and sign on a merchants tablet or tablet. It allows payments with gift card, cash and credit card.

PayPal is the global leader in internet payments. This company gives you the opportunity to safely detach some funds from your main account into an e wallet, from where you can safely make purchases over the internet, without having to worry that a digital trail will be left behind; through which your bank account may be compromised. PayPal has been adopted by the majority of merchants selling products and services on the internet, and also by small businesses doing person to person transactions.

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