A lot of people ask if PayPal is a bank. PayPal is a payment service you can use to buy stuff or receive money if you sell something or if someone wants to send you money. PayPal is a multipurpose account, you can choose between a personal or business account. with your account, you can receive money or payment, send it to others and also make payments online, in stores, and others.
Is PayPal a Bank
Though PayPal may seem like a bank since it has a lot of features similar to a bank or virtual bank. It is not a bank. Thiel who is a founder of PayPal has stated that PayPal is not a bank and it does not engage in fractional reserve banking. The PayPal funds that have not been disbursed are kept in commercial interest-bearing checking accounts.
Now PayPal was designed to suit your needs. PayPal has both personal and business accounts. When opening your account you get to choose which account you want to use. If it is a personal account know that it is for your personal transaction. If you are opening a business account it is for your business. Each account comes with features that will suit each need either personal or business.
PayPal Personal Accounts
With a PayPal personal account, you can easily make payments to anyone with an email address. You can make payments and receive payments without incurring fees and also pay low fees to others. There are numerous benefits attached to opening a PayPal personal account. And as a user, you are entitled to one person or one business account with PayPal.
PayPal’s personal account is free, you can shop securely, shop globally and so much more.
PayPal Business Accounts
Using PayPal for business is a great tool for you because a PayPal business account makes a lot of things easier and simplified for you. You get to offer PayPal as a payment method and your customers can choose how they want to pay.
This actually makes the payment process less complex for your customers. With features such as creating and sending invoices, obtaining loans for your business.
Payment processing, PayPal shipping, payment gateway, securely accept credit and debits card with no monthly fee, buyers do not need a PayPal account, and so many others there is literally little reason not to use PayPal business account.
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PayPal Sign Up
To start using PayPal you have to open an account with them and below are the procedures to follow. Creating a PayPal account you will be given an option of choosing a personal account or business account. it will take nothing less than minutes to get your account ready for use.
- Open the mobile app on your device or visit the website https://www.paypal.com/.
- Click on sign up for free or tap on sign up in the app.
- Enter a valid email address and create a super-strong password that you can easily remember.
- Fill out your personal details in the form and make sure they are your legal details.
- Enter your credit or debit card but you can skip it if you do not have them with you.
- Enter your bank account information. Also, you can skip it but you must add a bank account if you would want to withdraw funds.
- You will be asked to apply for credit. You can skip this option but if you want to apply to make sure to read the terms.
Click on no thanks to skip the option and you will be taken to your account summary. Following these procedures, you have successfully opened a PayPal account.