PayPal was founded in 1998 as a response to the demand for a fast, safe, and simple solution to making purchases online. Capitalizing on the rapid growth of online auction leader, ebay, PayPal quickly rocketed to the top of online payments between people. Leveraging this partnership with ebay, PayPal continued to grow, acquiring companies and becoming a tool for online shopping. The company has developed solutions for web payments globally. Recently, PayPal and ebay ended their long-term partnership and PayPal is poised to grow in the mobile wallet industry, specifically for smaller mom-and-pop businesses with their mobile app and PayPal Here POS terminals and card readers.

PayPal is lacking in the number of brick-and-mortar retailers at which accept PayPal payments, which hurts their overall rating with the Review Team. According to the company, PayPal will soon be offering contactless payments at existing terminals, which will greatly expand their customer base.

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The Good

Easy setup
Link your bank
Security measures

Easy Setup

PayPal is one of the leaders in the online payment field and is working to expand their market share in the mobile wallet industry. PayPal's strengths include:

PayPal is extremely easy to set up and use the service and app.
PayPal's track record allows for relationships with the majority of financial institutions, with easy integration of bank accounts from most banks nationwide.
PayPal is commonly used inside apps for purchases.

In order to use your mobile wallet, PayPal requires users to create an account with them and then download their free app. This process is straightforward and takes less than 5 minutes to complete. PayPal requires a bank account to support the service. PayPal itself is similar to a type of checking account from which users may use to make purchases. One of the benefits of this particular arrangement which has long been appreciated by PayPal's millions of faithful users is that when making purchases, one's financial information is never shared. This feature adds an extra layer of security to making purchases. Buying items online in various apps is as simple as clicking/tapping a "Pay with Paypal" button, signing into one's PayPal account and confirming the purchase.

Link your Bank

Users are able to link their current bank account information to their PayPal account quite seamlessly, and most major banks are compatible with PayPal, come with links allowing the user to easily find the information required to set up and confirm their account information with PayPal. For those who belong to a smaller bank or credit union, the set up and linking of a bank account requires a few additional steps, but remains simple to complete. PayPal's mobile app is compatible with iOS (iOS 7.1+), Windows, and most Android devices.

Security Measures

PayPal offers their users security and stability, which they are expanding to the mobile wallet industry. With PayPal's global customer base and many people having PayPal accounts, phishing scams are plentiful. One of them involves receiving an email which requires users to enter their PayPal information, upon so doing, they have given access to their account (and link bank accounts and credit cards) to scammers. Users should never give their PayPal account information as a response to an email. PayPal's customer service is helpful and live help is available 24 hours per day so that users may report or confirm any information which does not seem accurate or originating from PayPal.

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The Bad

Few Mobile Wallet options
Limited locations
Customer complaints

Few Mobile Wallet Options

PayPal holds a solid market share in their online payment solutions as well as with their in-app purchase capability. However, at the time of this review, there are few real mobile wallet options for users to make everyday purchases without scanning their cards. The most significant drawbacks in using PayPal as a mobile wallet include:

PayPal has their own point-of-service terminals which limits the number of retailers which accept PayPal as a method of payment.
PayPal's POS terminals are not contactless and their app does not offer contactless options with any of the current technology available.
Using PayPal at a brick-and-mortar store is not convenient, nor straightforward and would require steps which are cumbersome to the payment process, slowing down the transaction significantly.

As has been shown with PayPal's business model and track record, the company is working towards developing an option to make contactless payments a reality with the recent acquisition of Paydiant. Paydiant will give Paypal access to QR-code payment terminals, the same process that retailer backed CurrentC is currently beta-testing in Columbus, OH and plans to expand to a nationwide market soon.

Limited Locations

While the number of physical stores you can pay with PayPal is growing, it currently is low when compared to other mobile wallets. PayPal is in the process of becoming compatible with QR-code POS terminals. The company looks to expand further into offering the customers the ability to pay using Near Field Communication capability. As is and at present, this app does not offer the option to have a fully digital wallet.

Customer Complaints

There are several complaints from users of the PayPal app which state that the app is prone to malfunctions, and that it slows down their device. Further bug fixes will be needed for this app to become more stable and user-friendly.

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The Bottom Line

While PayPal is an excellent payment application inside other apps and for making purchases online, it still has many features which need to be added before it truly becomes a mobile wallet app which is compatible with the POS terminals at most brick-and-mortar retailers. With recent acquisitions and a solid track record, the Review Team is confident in saying that PayPal is not far off from adding additional capabilities to their services. However, with the standardized criteria created for rating mobile wallet apps, PayPal falls short in their offering. The remain a recommended option for their current strength, but are not able to be fully endorsed by the Review Team because of their voids in features which comprise a comprehensive mobile payment app.

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User Reviews

Star Rating

4.6

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202 Reviews

Review Breakdown

5 grade

64%

4 grade

22%

3 grade

2 grade

1 grade

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star star star star star

Deborah Dyer Hendersonville, TN

I have had PayPal set up and used for over 9 years. For me, this is a very safe, reliable and trust worthy way to quickly pay for something I am ordering from many places. It is easy to go in and set up a password, view your statements, and your payment history. I have never had an issue with it, except one time I got a scam email stating Thank you for an outrageous amount of an article that they said I paid with thru PayPal. I knew right off it was scam, because this is what they do. I immediately called and spoke to a very nice Paypal representative who after giving her the information about myself to make sure she was talking to the correct person, went in, checked my account and told me that NO purchase in the amount I quoted to her had been made. She informed me that in the future if I ever received another email such as that one, do not call any phone number listed, or open the email, just delete it. I know there are other companies that offer this type of quick payment, but having been with Paypal as long as I have, and satisfaction with their wonderful customer service, I will not be changing to any one else.

1 year ago

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jennifer thompson Prospect Park, PA

A few years ago while I was in a financial pinch, I applied for a PayPal line of credit. Although I did not think that I would get approved I tried anyway to my surprise they ended up giving me a credit line worth $3000. This line of credit gave me some peace of mind so that it’s anything went wrong in my house or with my car I would have some extra funds to be able to handle it. I also love that one PayPal you can link your credit cards and your bank accounts so that you can use it as a secured payment method when on websites purchasing products. I’ve never had any problems with PayPal even when some merchants did not send me my product, PayPal reverse the charges and gave me back my money in a sufficient time frame.

1 year ago

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Hank Ricardo

PayPal is the most used online payment option in the world. The PayPal wallet is secure and can be used anywhere. I've never had an issue with my wallet. I use PayPal everyday because of the business's that I run.

6 months ago

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George 97 North Bergen, NJ

PayPal has really eased my online payment options. I can pay for products, services and even receive money through paypal. It is easy to use and has a two factor authentication to prevent unauthorized access to my account hence keeping my money safe.

10 months ago

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Sinister Babe Kyle, TX

I’ve been using PayPal for years! Not only as a small business owner but personal use to send and receive money. I’ve never had an issue with it. They offer such a wide variety of services like pay in 4 and PayPal credit!

11 months ago Edited January 15, 2024

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Eddie Rios Ogden, UT

Paypal has been a primary small business financial tool. It has allowed my customers to seamlessly buy products and quickly and safely pay for them. The Paypal logo is hugely recognizable making this platform an obvious need in the retail setting. I can't live without Paypal, both as a business or as a consumer. I'm locked into it both ways, and happy about it.

4 years ago

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Oliver Sherren Provo, UT

I LOVE PayPal. Their fraud department is amazing, their customer service is amazing, their app is amazing, everything about PayPal I love. While it's not as convenient to use as Venmo, it still is fantastic for every other business transaction that you could think of. The one advantage that PayPal has over Venmo is that PayPal customer service will intervene for product purchases that were not advertised correctly. I've had a few occasions where I received a product that was not what was advertised and PayPal froze the money before it could reach the seller and helped negotiate. Just an amazing company.

3 years ago

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Blankie

Has helped me buy essentials for my house and myself many times. If it wasn't for using this card I would lack many essential things.

4 months ago Edited August 2, 2024

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Stephanie Bloniarz

I love PayPal wallet! It's easy to use and I feel safe and secure having it as a pay feature. I've been a PayPal customer for many years, and it's one the best digital wallets out there! A+++++++++++++++++++++++++

9 months ago Edited March 25, 2024

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mary martin Bossier City, LA

I have the PayPal wallet and it monitors whichever cards I choose to put on there very effectively! It will let you know if there is fraudulent type activity on any card that is being monitored and it makes it really easy to purchase things online and in person! Convenience at its finest!

1 year ago

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J Adams Charlotte, NC

I have used PayPal for many years. I use it to make purchases, send money to people and even used it for a one-time business event. I have had very few issues. Most were my own from just learning all the options PayPal offers.

1 year ago

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Reem Haddad Houston, TX

I absolutely love PayPal. I have it linked with my credit card and I’m able to purchase everything directly through PayPal without having to ever pull my card out. I also use it through my Shopify for my business so that’s another way I use it so it’s a great way to get paid as well.

1 year ago

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Christian Nakamura Secaucus, NJ

I use the Pay-in-4 service probably more than I should! It's very useful when you need to make medium-sized purchases like car parts or rare collectibles. PayPal also makes it easy to pay almost anywhere, and I use it often to send money to family and friends.

1 year ago

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Joseph Faenza Washington, DC

I have been using PayPal to pay for services rendered for a few years now and the service has always been quick and easy to use. Lately, there has been a change in regards to amounts over $600 that require you to pay taxes that has made things a little bit more difficult to complete. I recently received a check for a car insurance claim that was over $600 and I was being forced to pay the tax on it even though it was not for services rendered but for vehicle repairs. After I called PayPal’s customer service they helped me and took care of the situation so that there were no taxes required.

1 year ago

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Kevin Ortiz

PayPal is one of the pioneers of keeping a safe protection of payment methods. I always feel more secure when I see that PayPal is a payment method. The app is nothing special but truly gets the job done. They have been consistent yet have failed to revolutionize the industry to the extent it was initially thought the could reach

1 year ago

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Carlos M. Hercules, CA

PayPal is pretty easy to use. I mostly used it when buying thins/goods from people. I used it before Zelle came out. You PayPal anyone in the world just by getting their email. you can choose their currency and yours. I still use it and will keep using it.

2 years ago

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carole abel Palm Coast, FL

i have 2 pay-pal accounts that i am frustrated with. i can transfer money between the two and deposit into my bank account but I cannot find an in person vendor that still accepts PP as payment, namely panera bread. their website says they accept paypal but it really does not anymore, as very view vendors do. i would like the convenience of paying with my PP wallet on my phone but it seems useless. it is a nice way to receive money but iI do not trust PP to send money to my family or make payment. Any advise would be helpful. i have had these accounts for a few years now and cannot figure it out.

2 years ago

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Dana Hatfield Bullhead City, AZ

I use PayPal whenever possible. I like the security they offer me with my purchases. I like the diversity the offer with the products they have. Gives me many choices in dealing with my money. But my favorite part is the security they offer.

2 years ago

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Mandi Colorado Springs, CO

I love using Paypal to complete transactions when shopping online with a company I am not familiar with. I can rest easy knowing that my payment will be easy and keep my banking information safe for my transactions. The interface of the website and app is intuitive and easy to use. I also can use Paypal for billing for the private tutoring services that I provide in my local community. It allows me to send a request for payment and my customers can easily pay me electronically without me having direct access to any card or banking information.

2 years ago

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Lizzy Puentes Tallahassee, FL

Paypal is like an online wallet. It is a safe way to make purchases if you do not fully trust the online website you are making a purchase from. PayPal returns your money if the website commits fraud and steals your money. It is very helpful! You can also send or receive money from someone else's PayPal account.

4 years ago

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JDWain Tallahassee, FL

Paypal is a great way to send money and its how i pay my rent each money instead of having to write out a physical check. also paypal owns Venmo which is a great and easy way to send money back and forth with friends and family. Paypal is better and safer than some of the other companies like cashapp

4 years ago

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Cassidy Gundersen Orem, UT

I have used Paypal for years and have never had an issue with its service. Their verification process is good and I have always felt that my money is secure. Although, I do not like the 3% fee that follows business transactions. As a small business owner- that extra money can add up fast! One of the biggest benefits to using Paypal is that it is accepted as a payment method for many online stores and companies. I am able to link it to those accounts easily and quickly by signing in.

7 years ago

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murfday College Station, TX

I feel like I see it accepted at almost all online shopping sites. I’m sure it’s not, but it seems like it. I use it often because I like paying for things online without having to enter my credit card number. It is also easy to send and receive money. They also cover any fees when you donate to charities for Giving Tuesday and other times. I have also been surprised with a free $5 or so for using their app or other occasions.

3 years ago

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Marcie M Idaho Falls, ID

PayPal is awesome. I love the convenience of using it to pay when I’m shopping online and don’t want to take the time to enter all my credit card information. It’s quick, secure, and convenient. It’s also nice to have the option of using PayPal when sending or receiving money from a friend or a small business. I’ve been using PayPal for years and have never had a security issue. I feel like like it’s completely safe and secure. Love it!

4 years ago

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Sara Jane Crestwood, KY

Paypal is secure! I use it for personal money transfer as well as secure shopping on internet websites. I once had an issue where a retailer never sent me the product. Paypal contacted them for me and refunded my money quick. I appreciate the service making online shopping worry free. I also used the service for a campaign fund. It was fantastic for managing donations.

6 years ago

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Satoria MoonGoddess

New app and I love it. You can do small deposits and uae ut as a third party payer. I was scammes 20 years ago on paypal but the employee was caught. It took me years to trust them again. I watch my account closely.

11 months ago

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Teresa Bills

I like PayPal, it's great. I've never had any issues smooth transition from my other bank to PayPal. Fees are not high and I can move money or send money to anyone in my contacts.

1 year ago

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Mindy Clarke Tacoma, WA

I love using my pay pal account for online purchases, it is secure and I don't have to worry that my credit info can be stolen. Any time I have had any concern's, customer services has quickly resolved it.

1 year ago

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Jeremy Summa Inverness, FL

I use PayPal for my business and the way they have their website setup makes it fluid when I need them and don’t have time. It’s also a great way to safeguard your bank accounts.

1 year ago

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Kelsey Mclean Knoxville, TN

Absolutely the best way to pay online! No hassle. Easy to dispute. Safe and secure! Easily pay and get paid through the app for services. And you can look up your history as far back as you would like!

2 years ago

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scotty Saint Paul, MN

I haven't still currently use paypals mobile online wallet they have been security the ease of use online is amazing and you can incorporate payments through PayPal with your mobile won't work and use with almost any merchant or online service

2 years ago

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Mary Daniels Westland, MI

I’ve been with PayPal for some years now. I use them for my online shopping and services paid for my business. Invoices are very helpful through PayPal and I can send my clients a receipt of payment and detailed purchases. So far I’ve experienced no issues with this company!

2 years ago

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Becca Amiot Salem, VA

PayPal is another great money transferring app or just for making payments. I like that many websites are linked with PayPal as well. I have used PayPal for both money transfer and payments and never had an issue.

3 years ago

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Leonard Leo Potomac, MD

PayPal has grown since its eBay only transactions. Alongside credit card payments for online checkout, I find PayPal very convenient. No longer do I have to enter 16 digit CCC#s and address. I easily click on PayPal and everything is populated. Easy Peasy. If you want to pay some one or vice versa, just trade your email address.

3 years ago

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Robyn Brady Kent, OH

I use PayPal for anything that allows it. More secure than anything else and they provide statements and will help you with disputes if necessary. Great company and great customer service.

3 years ago

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Tiffany Baines Akron, OH

Easy to use, understand, access and use. Ordered a card to use connected to my pay pal account and I got it within a few days. An able to use this service, and card for many things. Very helpful!!!

4 years ago

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Tanner Cook Gilbert, AZ

PayPal makes it very easy to collect money on eBay, or purchase items on eBay. Because of that, it’s my go to app to keep money on. If you do anything on eBay, PayPal is a must!

6 years ago

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Hannah Pleasant Grove, UT

Nothing but good things to say about Paypal. It is so nice to not have to go dig through my purse to pull out my card when I'm making online purchases. Signing up has been a huge timesaver in my daily life!

7 years ago

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Michelle Bray Pleasant Grove, UT

I have used PayPal for many years. I have used PayPal to send and receive international funds from my students. I have paid for services and had protective from fraudulent entities. I can easily deposit PayPal funds into my bank account or vice versa to pay for goods. I like this service.

3 years ago

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CJ Milke Olney, MD

Paypal was the easiest way for me to collect money from people when I hold parties where tickets cost money. It is also an easy way to give someone their I Owe You if you owe someone money. Very reliable, all of my payments have always gone through on the first try.

3 years ago Edited September 14, 2021

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Makayla Holland Gaithersburg, MD

I like PayPal because it’s easier paying method for mr go buy things online, and I do a lot of online shopping so instead of putting my card information in I can just pay through PayPal.also I like the fact that you can get an alert or email when somethings I’d purchased. I highly recommend everyone should use PayPal

3 years ago Edited September 14, 2021

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Whitney Wilkins West Valley City, UT

PayPal is such a great way to make payments and also get paid. I've used it to receive payments as an ambassador of a company and it makes it so easy and clear to work with. It's also so quick and easy to pay other people or companies. It's so handy and I can just do it right from my phone.

3 years ago

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Aaliya Ghadafii Tallahassee, FL

The best feature about PayPal is there split in 4 payments features. If I don’t have the total payment for an item I need to purchase at that exact moment I can split the payments and pay for remaining in the future. The feature can be lifesaver for me sometimes.

3 years ago

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Steve Ashby Portland, OR

I've been using Paypal for many years. It is always convenient and a good way to transfer money. Recently I made a big sale through ebay and Paypal was a great way to take payment. I've started using it more to make payments on various websites. Great way to go! I think their rates are sometimes too high, but that is my only complaint and why I didn't give 5-stars.

3 years ago

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Lottielyn Schwenke Orlando, FL

The mobile wallet makes shopping on the go so easy! I first started using it for shopping at a craft fair but have found so many other convenient uses for mobile wallet since then, even accepted at more and more stores than just online.

4 years ago

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Jennifer Garrard American Fork, UT

My husband did some work for a company and we needed to write an invoice for it. Using Paypal to write the invoice was AMAZINGLY SIMPLE . The platform Paypal set up was extremely user friendly and we were able to send it off after just a couple of minutes. Easy, simple, fast, reliable - loved my experience.

6 years ago

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Robert Lino

I find PayPal to be extremely difficult to get things resolved with. They always find against the customer when a problem arises. To dispute anything with them and to force the company to make things right will require you to get an lawyer

8 months ago

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Carmen Santiago

PayPal is widely a reliable method to make online purchases. It offers advantages such as buyer protection, which gives you security in case of problems with a purchase.

1 year ago

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Heather H Sanford, FL

Paypal is convenient and rather transparent, but they do charge fees for basically everything. The protection they provide for consumers is nice, but I'm not convinced it balances out their fees.

1 year ago

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Jasmin Mena

I have used Paypal for over a decade now and slowly it has gone downhill. Personally I haven't had any issues, but Paypal increasing their fees, constantly updating their UI (which stays buggy) and endless stories of withholding people's money for no reason makes me irritated and nervous sometimes. It's an easy service for the most part, but I feel like I'm walking on eggshells a lot when using them.

1 year ago