PayPal: the Future of Digital Wallets


With nearly 160 million active users in 203 countries, PayPal manages each quarter the transfer of additional than $ 200 billion in 26 currencies (data for Q3 2014). Although it must respect the rules and regulations governing the financial industry, PayPal is not a bank in the strict sense (does not have a fractional reserve) the company’s San Jose offers in fact a money transfer service in digital form, allowing users to make and receive payments, purchase and sell products, send and request funds. For this work of mere brokerage, PayPal asks the seller to pay the variable fees based on the quantity exchanged. Access to the service and the management of the account can be made ​​from the website or via app for iOS, Android, Windows Phone, and BlackBerry 10.


How does PayPal?

PayPal allows you to make online financial transactions through the transfer of electronic money between individuals and companies. The first step in using the service is opens a free account (Personal, Premier, or Business). The first is shown if the user wants to use PayPal to shop online, the second allows you to sell as private, while the third is aimed at companies that take delivery of payments and want to leverage the tools of e-commerce. After creating the account and added some personal information (name, address, phone number, etc. You must confirm the email address, which is the “number” of the account.

At this point, the user must be associated with the account a payment method, choosing among credit card, debit card, prepaid card and bank account. PayPal charges 1.71 US confirm the cards and two amounts between 0.01 and 0.99 euro to confirm your bank account. After confirmation, the sums are reimbursed credited as PayPal balance. This procedure also allows you to become verified user, or prove to be the account holder, and to remove the initial limits sampling and sending. All accounts are subject to an annual limit of receipt of 2855.94 US Dollar. Reached this amount, PayPal needs to seek more information from customers, as determined by the provisions of EU law on money laundering.

To send money is enough to know the email of the recipient or his mobile number. For purchases online, simply click on the button canonical “PayPal”. When the user makes a payment, authorize us to obtain the sum of the payment method, the following order (balance, bank account, credit card / debit / prepaid credit card / prepaid PayPal, PayPal Credit). In Italy is currently not possible to use PayPal Credit (“Bill Me Later”), since it is reserved only to US users. The bank account, however, can only be used to transfer the PayPal balance and recharge your PayPal account with a bank. If the user has an account balance, PayPal will always use this balance to make the payment. If the user does not have a balance or if this balance does not cover the full amount of the transaction, PayPal will carry out the transaction, or the remainder of the same, using the other payment methods.

PayPal how much

The moment you make a purchase with PayPal you should know that the transaction would be free, as to pay a fee to PayPal (proportional to the amount transferred) is the seller. The cost falls so everything about who is selling and not on who buys, who has the confidence in knowing that the overall cost of the operation is identical to the price-screen item or service purchased. Pay in euro with PayPal balance or associated with the cards is free. Sales in the euro zone are subject to a fee of up to 3.4% + 0,35 euro per transaction. Rates depend on the volume of monthly sales, according to the “Sell more, pay less.” Outside the euro zone is intended to charge fees for international payments and currency conversions. The rate for non-profit organizations is 1.8% + 0.35 EUR.

PayPal is used mainly via browser for online purchases and to pay for products sold on eBay, the popular auction site that has contributed to the success of the service since its debut. Since 2006, users can send an SMS to make a payment and to know your account balance. About four years later, the company has released the app for iOS and Android , followed in 2012 from the app for Windows Phone . At the end of June 2014 were also presented applications for Android Wear and Pebble, moving so the first steps towards the wearable technology (new frontier with which PayPal will clear reckon). On January 7, 2015 was also released the app for BlackBerry 10 . PayPal is then available on all major mobile platforms.

The mobile version of PayPal allows you to perform the same operations available through the website (payments, sending, / receiving money, account management, etc.). After installing the app, the user must connect and confirm the phone number, then create a PIN Mobile. The pair number / PIN can be used to log in, as an alternative to the couple email / password. The latest releases also let you add loyalty cards, gift cards and coupons / discounts, turning PayPal into a real digital wallet (digital wallet).

Through the part, shopping you can view a list of the businesses that accept PayPal payments in the vicinity of their current location. The user can check in , snapping a Selfie that will be used by the retailer for the recognition. The cashier will use the PayPal app dedicated to merchants to identify the customer through the pictures and complete the transaction. On iOS and Android, you can take advantage of the service One Touch developed by Braintree (company acquired in September 2013) to pay with a single touch via the app of operators, without entering email, password or card information. On some devices Samsung (Galaxy S5, Alpha, Notes 4 and Tab S), the user can login and payments with his fingerprint.