# Paypal notes
PayPal can be considered both a digital wallet and a payment processor.
# PayPal as a Digital Wallet
- Stores payment information: You can link multiple credit cards, debit cards, and bank accounts to your PayPal account.
- Enables quick payments: With saved payment information, you can quickly and securely make online purchases.
- Offers additional features: PayPal often provides features like sending money to friends, requesting payments, and managing your balance.
# PayPal as a Payment Processor
- Accepts payments: Businesses can integrate PayPal into their checkout process, allowing customers to pay with their PayPal balance or linked cards.
- Provides payment processing services: PayPal handles transaction processing, fraud prevention, and chargebacks for businesses.
# Peer-to-Peer (P2P) Payment Service
PayPal is one of the most well-known and widely used P2P payment services. It allows individuals to send and receive money directly to each other without the need for traditional banking intermediaries.
# Cross-Border Context
Key aspects of PayPal's cross-border P2P:
- Global reach: PayPal operates in many countries, allowing for a wide range of cross-border transactions.
- Currency conversion: PayPal automatically converts currencies for cross-border payments, making it convenient for users.
- Fees: While PayPal offers cross-border P2P, it's essential to be aware of potential fees, including currency conversion fees and transaction fees.
- Speed: Transaction times can vary depending on the countries involved and the chosen funding source.
- Regulations: Cross-border payments are subject to various regulations, and PayPal complies with these to ensure smooth transactions.
Important Considerations:
- Exchange rates: PayPal uses its own exchange rates, which might differ from the mid-market rate.
- Transfer limits: There might be limits on the amount of money you can send or receive in a specific period.
- Receiving money: Ensure the recipient has a PayPal account in their local currency to avoid additional fees.
# Paypal vs Stripe
| Feature | PayPal | Stripe |
|---|---|---|
| Focus | C2B | B2B |
| Checkout customization | Limited | High |
| API | Basic | Robust |
| Fees | Generally higher | More competitive |
| User base | Larger | Smaller |