PayPal is a popular e-commerce trading system that allows people to send money to each other as well as purchase goods online in more than one-hundred currencies and without having to keep re-entering personal information with every transaction. They use technological innovation to continually improve the way that their customers can move and manage their money. This review will teach you everything that you need to know about this highly popular banking option.
The History of PayPal
PayPal was founded in 1998, but back then it was known as Confinity and was actually a company that created top quality security for handheld devices. The following year, they moved away from the security sector and moved into the money transfer market. In the year 2000, they merged with Elon Musk’s online banking company, X.com. Musk later decided that they would forget about all their other Internet banking projects and focus on this new money service. In 2001, the company was renamed PayPal and after a year’s development, PayPal was made available to the public in 2002. The rest, as they say, is history.
Creating a PayPal Account
Creating a PayPal account, you will be glad to hear, is pretty simple. We will now take a look at what you will need to do in order to open an account.
Obviously, the first action that you must do is visit their site using a browser such as Google. When you are on their homepage, you will see “Sign Up” in the top right corner of the page. Click on it to begin the creation process.
PayPal has two types of accounts that are available, which are the “Business Account” or “Individual Account”. You have to select which type of account that you want to create, but the majority of you reading this will be best off choosing the latter.
The first thing that you will need to do is enter your personal email address and then create and confirm a password. You need to make sure that you choose a strong one so that nobody else will be able to access your finances. The country should automatically be selected as India, but, if for some reason it isn’t, select it from the drop-down list.
Once you have done this, you will be asked to fill in a form with your personal information. You will need to include your first name, middle name (if you have one), surname, home address, and your mobile or landline number. You then need to confirm that you have read the terms and conditions (which you should actually do) before you can move on to the next step.
The next step is entering your debit or credit card details. You can skip this stage for now if you like, but you will have to add it at some stage in order to verify your account (we will explain how to verify your account in the next section). If you skip this section, you will be taken to your brand new account.
You Now Need to Verify Your Account
Before you can start receiving payments, you need to carry out a number of tasks. This included confirming your email address, uploading you PAN information, linking your bank, and selecting a purpose.
Confirming your email address is simple. You just need to go into your email account, open up the email that you received from PayPal and click on the link that is in the email.
For you PAN information, you will need to add your first, middle, and last name, your PAN number, and your address. The name that you give here has to match with the name that you provided when you were filling in the forms to open a PayPal account. If it does not, then your account will not be verified.
To add the purpose of your PayPal account, select “Purpose Code”, which can be found on the left side of the site. Here, you need to select the reason for why you are opening up a PayPal account. You need to make sure that you are accurate with your selection.
To link your bank, click on the “Add Bank” option that can be found underneath the “Purpose Code” option. You will need to link your Indian bank account if you are going to be receiving money and want to transfer it from PayPal to your bank account. Select “Next” to proceed with adding your information.
Select “Link Bank Account” and add your account number and IFSC code. This code can be found on a chequebook or a bank account statement, but if you cannot find either, there is a tool underneath the form that will help you find the IFSC code for your bank. Once you have added these two details, click on “Continue”.
Once you have done this, PayPal will send two very small cash sums to your bank account (which they will later take back). These funds should appear in your account within 3-5 working days. Once they have appeared, you simply have to add the value of the two cash deposits into PayPal in order to verify your bank details.
Once PayPal has verified everything, they will send you an email to confirm that you account has had all limits removed. You will now be able to make transactions.
Adding Cash to Your PayPal Account?
Once you have created and verified your account, if you want to use it to shop online or to send money to friends and family members, you will need to add some money to your account. But, how do you do this? Well, you will be happy to know that it is a simple process that we will explain now.
- Underneath your PayPal balance, you will see the words “Add Money”. Click on it.
- You then need to select your bank account (if you have two or more).
- Enter the amount of money that you would like to add and then click on “Add”.
- Double-check the transfer and then select “Submit”.
The funds that you have just added should be available to use within 3-5 working days.
What Fees Are PayPal India Users Subjected to?
Fees are something that you should always have a look at before you make the final decision to sign up to a particular banking option. So, what fees are those who use PayPal in India subjected to? All will be revealed now.
When you are buying goods using PayPal you will not be charged a fee if the company you are sending the money to is based in India. However, if you are sending money out of the country, a currency exchange fee might be applied.
- If you are sending money to somebody, you won’t be charged anything. However, if you are receiving money from a client in India, you will be charged 2.5% and a fixed transaction fee of 3 Indian rupees.
- If you are receiving money from a client abroad, anything up to the equivalent of $3,000 will be charged 4.4% and a fixed currency fee (depending on the currency you are sent). If you go above $3,000, the fee percentage will drop slightly, but we won’t go into detail here as you will probably not be receiving such large sums.
It is important to add here that if you are receiving money from friends or family members, you will not incur a charge.
You will be happy to hear that there is no withdrawal fee for PayPal users. This is great as it can get really annoying withdrawing money and receiving less than what you withdrew.
Here Are the Pros and Cons of Using PayPal
- Super easy to use: Whether you are purchasing something online or using it to receive money for a business that your run, you will find that PayPal is very simple to use and manage.
- Keeps a record of your transactions: You can take a look at all the transactions that you have made simply by visiting the transaction page.
- Very secure: You do not need to worry about all of your personal details getting into the hands of the wrong people as PayPal make use of the best encryption technology out there. When compared to other banking options, PayPal is at the top of the list when it comes to security.
- Free to send money to friends and family members: If you want to send money your loved ones, you won’t be charged, and they won’t be charged either.
- Frozen accounts: PayPal has no qualms when it comes to freezing an account without warning. Their algorithms will sometimes detect suspicious activity and, if that happens, they will freeze the account right away.
- Phishing and scams: PayPal customers will often get fake emails or messages from people who say they are PayPal’s affiliates. They will then ask you to provide them with all of your PayPal information. Thankfully, these scams are easy to spot. This isn’t PayPal’s fault, but we just thought we would mention it so that you remain vigilant.
- No live chat option: If you have an issue with your PayPal account, you can contact them on the telephone or by sending them an email. There is no live chat option, which is a shame as this is often the fastest way to get your issues resolved. If you have an issue, you should check out the FAQ section first before trying to contact an agent.
Download and Use the PayPal App
PayPal, like all great banking options, has an app that can be downloaded to iOS or Android devices. There used to be an app available for Windows and Blackberry phones, but this is no longer the case.
This app allows you to send payments to anywhere you like in a matter of seconds. You can also use it to purchase goods. We downloaded this app so that we could experience it for ourselves, and it was extremely convenient. It is very mobile-friendly and you will not have any issues using it.
Our Final Thoughts on PayPal India
In our humble opinion, PayPal is one of the best banking options available at this moment in time. Sending and receiving money is super easy and there are no withdrawal or deposit fees like there are with other similar types of banking methods. To add to this, you never need to worry as they do everything in their power to make sure that your personal banking details are safe.
The only thing we think they could add to make themselves even better is a live chat option. Although, the lack of one isn’t any reason not to create an account with them. In our view, everyone should consider opening up a PayPal account.