In today’s modern era also known as the globalization era, there is a high demand for goods from abroad because of which there is buy and sell of such goods. But the problem arises when the currency in which you are buying and selling are different, then how will the transaction be placed between two parties.
Let’s understand this situation by an example if an American resident has to sell a good to an Indian resident and the good is listed at the price of 100 USD how will the Indian person pay if he has money in rupees, in this situation PayPal will convert the Indian currency into USD and will make the transaction between the two individuals.
What is PayPal?
PayPal is a world-class based financial company based in America that provides online payment facilities around the world. By using PayPal transactions of money can be made in almost every country in the world. This works in such a manner that if you want to a transfer or do a transaction, PayPal will take your money and then convert that money into the currency of the other countries currently you are paying to for this PayPal charges some fees for this conversion of currencies.
There are around 325 million active accounts holders worldwide of PayPal. This makes payments around the globe easy and accessible. This is frequently used by businesses, freelancers, and people who buy and sell something aboard.
What’s the history of PayPal
PayPal was founded in December 1998 by confinity inc which was a software security company. Peter Thiel, Luke Nosek, and Max Levchin were involved in the founding of PayPal. But unfortunately, the company didn’t get successful so they launched a digital wallet and from 1999 the first version of PayPal was launched.
After that Confinity inc merged with X.com in march 2000, which was a financial service company founded by Elon Musk. After the collision Elon musk and Bill Harris became the CEO of the company. In may 2020 Bill Harris left the company and Peter Thiel in October became the new CEO replacing Elon Musk.
Types of PayPal accounts
There are two types of accounts that you can open in PayPal one is an Individual account and the other is Business Accounts. Both of these accounts are different and the documents for both of these accounts are different, which we will learn about later in this article.
This account is only created for sending money and for personal use. In This account, you cannot receive any money.
The second type of PayPal account is a business account on which you can not only send money but also receive money, unlike an Individual account. This account is mainly used by businesses, freelancers, and sellers for doing transactions. There are subdivisions in this account which are small to medium business and enterprise account.
What are the documents required for creating a PayPal account
Creating a PayPal account is very easy but you need to have the required documentation for creating an account that is different for individual and business accounts.
- Government-issued ID
- Address proof issued by the government or any recognized institution such as bank statement, utility bill, etc.
- Government-issued identity certificate
- Address proof as asked in the individual account
- Business registration copy
How to create a PayPal account
- The first step is to go on the PayPal website which you can do by simply typing PayPal on google.
- Now you have to click on sign up in the top right corner
- There will an option to choose your account which is a business or an individual, keep in mind that payment will not be received in person or individual account.
- Now you have two options in front of you, fill it first, you have to choose the business like on market place or freelancer platform. And then the sales volume.
- Now do next and you will be asked to fill your email I’d and mobile number.
- Now you have to choose the types of business you have to describe your business.
- After that, you now have to fill up your personal information like name, date of birth, address, state, and business type then click on agree and continue.
After the creation of your PayPal account, you can do transactions
Now let’s see the advantages and disadvantages of PayPal
Advantages of PayPal
- This allows you to send and receive money along with the whole world.
- Through this, you can send money in your currency or can receive money in a different currency
- If there is some kind of dispute between the two parties PayPal monitors it.
- If you are receiving money in foreign currency then FIRC is issued by PayPal which is useful for tax
Disadvantages of PayPal
- If there is some kind of issue while using PayPal and you want customers to support it takes a day for that.
- They have a lot of unknown or hidden charges
- There are many types of verification to be done which takes a lot of time.
- They have full control of your account and can disband it if they if you violate their policy.
In this article, we learned about what is PayPal how you can create an account in PayPal and what are the different types of PayPal account. what are the disadvantages as well as the advantages of PayPal? After reading this article you will be able to use and create a PayPal account and also protect it. PayPal is a very great way of doing transactions in different currencies around the world.
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