There has been a massive increase in global businesses and international transactions in the past few years. As per Statista, the total value of digital remittances is expected to reach $182 billion by 2028.
There are different reasons for this phenomenon, including ease of doing business, removal of trade barriers, and improvement in the latest technologies, such as fast-speed internet (concerning services).
However, businesses and individuals worldwide often face a challenge regarding international payments. Sending and receiving money across borders can be quite challenging due to the inclusion of multiple regulators and authorities.
In such a case, PayPal has emerged as one of the best platforms for sending and receiving money from different countries. In addition, it has proven to be an excellent recurring payment app. It offers different methods for setting up ongoing payment via PayPal.
The platform also has a wonderful track record of addressing users’ international transaction-related issues. This is why it is trusted by 426 million users worldwide. Setting up a PayPal account is easy and requires a few steps.
Even though the statutory requirements can vary based on the regulations in a given country, this guide shall help you understand the basic steps required to sign up for a PayPal account and start sending and receiving payments from different parts of the world through a payment gateway.
Why Choose PayPal?
There are multiple alternatives for making international and cross-border payments. In addition to traditional banking gateways, there are user-friendly and effective third-party service providers.
However, PayPal outclasses all competitors and is the rightful market leader in international payments. There are different reasons why PayPal is considered one of the best options for international transactions.
The first factor is the high-level security offered to users and intermediaries. PayPal employs the highest level of digital security, including advanced encryption and fraud prevention technologies. This means that users have complete peace of mind while dealing with the platform.
Besides security, PayPal is recommended by users worldwide due to its user-friendly interface. It is easy to send and receive money with a few clicks, and navigating the platform is straightforward.
Further, PayPal is quite popular in different parts of the world, and its services are available in over 200 countries. This means that the platform supports multiple currencies and complies with the regulations of almost all countries.
PayPal works closely with the monetary authorities and central banks of the countries it operates. Hence, money laundering is avoided through its strong due diligence procedures.
Some additional functionalities are also available, including the convenience of setting up recurring payments, automation of bill payments, subscription-based payments, and investments through PayPal.
Here are a few suggested methods for setting up ongoing payment via PayPal. This makes PayPal a finance super app that addresses various user needs.
Creating Your PayPal Account
Having your own PayPal account is quite simple. Here is a stepwise guide for a user to get started:
- Visit the PayPal website or download the PayPal app.
- Click on ‘Sign Up’ for a new account.
- Choose your country or region and your language preference.
- Decide between a Personal or Business account.
- Enter your phone number for verification purposes.
- Fill in your personal information, including your name and email address, and create a password.
- Agree to PayPal’s user agreement and privacy statement.
- Link a bank account or credit card to your PayPal account for transactions.
These are the basic steps to set up a new PayPal account. In a few jurisdictions, additional steps might be required for regulatory compliance. However, it is suggested that a new user know the exact requirements and choose the correct type of account before proceeding further.
Choosing the Right PayPal Account
When you sign up for a new PayPal account, you will be prompted to choose between a business or personal account. It is critical to understand the difference between the two before selecting one. Here is a table underlining the differences between a personal and business account:
| Feature | Personal Account | Business Account |
|---|---|---|
| Account Type | Individuals | Merchants or Companies |
| Primary Use | Making purchases, sending money to friends and family | Selling goods or services, business transactions |
| Transaction Capabilities | Send and receive money, shop online securely | All features of personal accounts, plus receive payments for goods and services |
| Access for Employees | Not available | Allows access to up to 200 employees |
| Customer Service Email Alias | Not available | Available |
| Subscription Services | Not available | Set up subscription services |
For example, if you are a freelancer providing online coaching or tuition services abroad, a personal account would be the perfect alternative for you. On the other hand, a business account is recommended if you are a small business owner, and access to employees is required.
Setting Up Payment Methods in PayPal
After you have activated the PayPal account, it is recommended that you add payment methods to ensure you unlock the platform’s full potential. To ensure transaction flexibility, PayPal allows you to link multiple bank accounts, as well as debit and credit cards. Here is a quick guide that helps in setting up payment methods in PayPal:
- Log in to your PayPal account.
- Navigate to Wallet at the top of the page.
- Choose Link a bank account or Link a debit or credit card.
- Provide your bank account or card details. For bank accounts, you might need to undergo a small verification process, where PayPal deposits a small amount into your account, which you’ll verify back on PayPal’s platform.
- Once verified, your bank account or card is ready to use.
As described before, there might be a few additional steps depending on the regulatory procedures in a few jurisdictions. A user might need to follow them to activate their account.
Summing Up
Setting up a PayPal account is quite straightforward. Once you have completed the sign-up process and activated your account, you will be prompted to add bank account/credit card details for seamless transactions. It is highly recommended that you complete this step to best use your PayPal account. Once this is done, sending and receiving money through the linked bank account shall be achieved only by a few clicks. PayPal also provides business users with invoicing options. The user is also allowed to export comprehensive reports for a given period.
