How to Use PayPal (2026)
PayPal is one of the most widely used payment platforms in the world, with over 430 million active accounts across more than 200 countries. Whether you want to split a bill, pay for something online, or receive money from a client, knowing how to use PayPal correctly saves time and avoids unnecessary fees.
This guide covers how to use PayPal from start to finish: setting up your account, sending and receiving money, adding funds, paying at checkout, and using the PayPal app. It also covers the international transfer side in detail, including what PayPal actually charges and when a specialist money transfer service is the smarter option.
If you are asking how do I use PayPal for the first time, or you have used it before but want to understand all its features, this is the complete reference. Everything is covered in the order you will likely need it.
How to Set Up and Access Your PayPal Account
Before you can learn how to use PayPal to send or receive money, you need an account. Setting one up takes around five minutes. You will need an email address, a mobile number for verification, and either a bank account or card to fund payments.
Creating a PayPal Account
Go to paypal.com and click Sign Up. Choose between a Personal account (for individuals making purchases and sending money) and a Business account (for sellers and merchants). Most individuals should start with a Personal account.
- Enter your email address and create a password
- Confirm your phone number via SMS verification
- Enter your full name and date of birth
- Add a payment method: bank account, debit card, or credit card
- Verify your email address by clicking the link PayPal sends you
Once verified, your account is active. You can send and receive payments immediately, though PayPal may place a temporary hold on received funds until your account establishes a history.
Linking a Bank Account or Card
To fund payments and withdraw money, you need to link at least one payment method. Go to Wallet in your PayPal dashboard, then click Link a bank or card. PayPal supports most major UK banks and US banks, as well as Visa, Mastercard, and Amex cards.
For bank accounts, PayPal typically verifies ownership by making two small test deposits (usually under $1) that you confirm in your account. This process takes 1-3 business days. Cards are verified instantly. Once linked, you can set a preferred payment method for future transactions.
How to Use PayPal to Send Money
Knowing how to use PayPal to send money is the core skill for most users. PayPal offers two sending modes: Friends and Family (no buyer protection, lower fees for domestic) and Goods and Services (buyer protection included, seller pays a fee). Choosing the right one matters.
How to Send Money to Friends and Family
Use this for splitting bills, repaying friends, or sending money to family. There are no fees for domestic Friends and Family transfers funded from your PayPal balance or bank account in the US and UK. Funding from a card adds a small fee (around 2.9% in the US).
- Log in and click Send and Request from the home screen
- Enter the recipient's email address, phone number, or PayPal username
- Enter the amount and select Sending to a Friend
- Choose your payment method and click Next
- Review the details and click Send Money Now
The recipient receives an instant notification. Funds land in their PayPal balance immediately. They can then spend the balance online or transfer it to their bank account.
How to Pay for Goods and Services on PayPal
When buying from a seller or paying for a service, always use Goods and Services. This activates PayPal Buyer Protection, which covers you if the item does not arrive or is not as described. The process is the same as Friends and Family, but you select Paying for an Item or Service instead.
The seller pays PayPal's transaction fee (typically 2.9% plus a fixed fee in the US). As the buyer, you pay no additional fee. Disputes must be filed within 180 days of the transaction date.
PayPal's domestic fees are straightforward once you understand the two modes. International transfers are a different story.
- Friends and Family (domestic, bank-funded): no fee in the US and UK
- Friends and Family (card-funded): around 2.9% sender fee
- Goods and Services: seller pays 2.9% + fixed fee, buyer pays nothing extra
- International transfers: 3-4% currency conversion fee on top of the exchange rate, plus a transfer fee. This is where costs become significant.
- No buyer protection on Friends and Family: if a scammer insists on this method, refuse. Only use it for people you personally know.
How to Use PayPal to Receive Money
Receiving money on PayPal is passive once your account is set up. Anyone with your email address or PayPal username can send funds to you. You do not need to be online when the payment arrives.
How to Request a Payment
If you are owed money and want to prompt someone to pay, use the Request feature. Click Send and Request, then choose Request. Enter the person's email or phone number, the amount, and an optional note describing what it is for. PayPal sends them a payment request by email.
For freelancers and small businesses, PayPal also lets you create payment links and invoices. Go to Tools, then Invoicing, to generate a professional invoice that includes your bank details and a Pay Now button. The recipient clicks through and pays directly into your PayPal account.
How to Accept Payment for Goods or Services
If you sell items online or provide services, share your PayPal email address or your personal PayPal.Me link. PayPal.Me links look like paypal.me/yourname and can be shared by message, email, or social media. When someone clicks the link, they are taken to a payment page and can pay instantly.
Incoming Goods and Services payments incur a fee on your side (typically 2.9% plus a fixed amount in the US). This is deducted automatically before the funds land in your balance. Plan pricing accordingly.
How to Add Money to Your PayPal Balance
You can preload funds into your PayPal balance rather than drawing from a bank or card each time. This can be useful for budgeting or making quick payments without waiting for bank processing.
Adding Funds from a Bank Account
Go to your Wallet in the PayPal app or website. Click Transfer Money, then Add money to your balance. Select your linked bank account, enter the amount, and confirm. Bank transfers typically take 3-5 business days to clear in the US. In the UK, Faster Payments usually completes the same day.
There is no fee for adding money from a bank account. Once the funds appear in your PayPal balance, they are available immediately for any PayPal payment.
Using a Debit or Credit Card
You can fund individual payments directly from a linked debit or credit card without pre-loading your balance. When sending or paying, simply select the card as your payment method at checkout. PayPal charges the card in real time.
Note that credit card payments for Friends and Family transfers incur a fee of around 2.9% in the US. For online purchases via Goods and Services, there is no additional buyer-side fee regardless of payment method.
How to Use PayPal Online and In the App
PayPal works across browser-based checkout, the mobile app, and in-store via QR code. Understanding how to use the PayPal app puts the full feature set in your pocket.
Paying at Checkout with PayPal
When shopping online, look for the PayPal button at checkout. Clicking it opens a PayPal window where you log in and confirm your payment method. The merchant never sees your card or bank details. This is one of PayPal's strongest features for online security.
PayPal is accepted at millions of online retailers globally, including Amazon, eBay, Etsy, and most major e-commerce platforms. If you do not see a PayPal button, some sites offer PayPal as a card-on-file option in their payment settings.
Using the PayPal App and Virtual Card
The PayPal app is available on iOS and Android. It mirrors the full web experience: you can send money, request payments, check your balance, transfer funds to your bank, and manage linked accounts. The app also supports Face ID and fingerprint login for quick access.
PayPal offers a virtual debit card (PayPal Debit Card in the US, PayPal Prepaid Mastercard in the UK) linked directly to your PayPal balance. This lets you use PayPal everywhere Mastercard is accepted, including in-store. How to use the PayPal app for in-store payments: open the app, tap your balance, and either generate a QR code for supported merchants or use your virtual card number for contactless payments where supported.
How to Use PayPal for International Transfers
PayPal supports international money transfers to most countries. If you are wondering how do I use PayPal to send money abroad, the process is the same as domestic: send to an email address, choose your amount, confirm. What changes significantly is the cost.
Does PayPal Work Internationally?
Yes. PayPal operates in over 200 countries and supports around 25 currencies. You can send money to anyone with a PayPal account in another country. The recipient does not need a bank account. They receive the funds in their PayPal balance and can spend them online or transfer to a local bank.
Not all countries support PayPal equally. Some markets restrict the ability to withdraw funds to a local bank, or limit the currencies available. For major corridors like US to UK, UK to Europe, or US to India, PayPal works reliably. For less common destinations, coverage may be limited.
What Does PayPal Charge for International Transfers?
This is the critical section. How do you use PayPal for international transfers affordably? The short answer: you do not, at least not compared to specialists. PayPal applies two cost layers on top of every international transfer:
- Currency conversion fee: 3-4% above the mid-market exchange rate. If the real rate is 1.00, PayPal uses roughly 0.96-0.97.
- Transfer fee: around 5% for personal payments, capped at $4.99 in most cases depending on amount and funding method.
On a $1,000 transfer, that means roughly $30-45 lost to the exchange rate markup alone, plus the transfer fee. The recipient receives around $955-970 instead of the full $1,000 equivalent. Over multiple transfers this compounds significantly.
Service | Exchange Rate | Fee on $1,000 | Recipient Gets |
|---|---|---|---|
PayPal | 3-4% above mid-market | ~$30-45 total | ~$955-970 |
Wise | Mid-market rate | ~$4-8 fixed | ~$992-996 |
Xe | Small markup | ~$0 fixed fee | ~$985-992 |
Remitly | Small markup | ~$2-4 fixed | ~$988-995 |
Better Alternatives for Sending Money Abroad
If you are sending money internationally, specialist services are built for exactly that purpose. They offer mid-market or near-mid-market exchange rates and transparent fees, making them dramatically cheaper than PayPal on every corridor.
See What You'd Actually Save
Use the comparison tool below to see live rates from Wise, Xe, and Remitly on your specific transfer. The difference on a $1,000 send can easily be $30-40.
Wise: Mid-Market Rate, No Markup
Wise uses the real mid-market exchange rate with no markup. It charges a small transparent fee, typically 0.4-1% depending on the currency pair, shown upfront before you confirm. For most how to use PayPal alternatives, Wise is the cheapest option on major corridors. It is FCA authorised in the UK and FinCEN registered in the US.
On a $1,000 transfer to Europe, Wise typically charges $4-8 in fees with the mid-market rate. PayPal charges $30-45 for the same amount. The numbers make the choice clear.
- Mid-market exchange rate: no FX markup, unlike PayPal's 3-4%
- Transparent fixed fees: shown before you confirm, no hidden charges
- FCA authorised: fully regulated in the UK and US
- Fast delivery: major currencies often arrive same day or next day
Xe: Best for Exotic Currencies
Xe supports over 130 currencies with no fixed transfer fees on most corridors. It applies a small rate markup but no flat fee, making it particularly competitive for larger transfers and less common currency pairs. Xe is part of Euronet Worldwide, a NASDAQ-listed financial group.
Xe covers destinations that PayPal either does not support or charges a premium for. No fixed fees and wide currency coverage make it the specialist for exotic corridors.
- 130+ currencies supported: broader reach than PayPal for many corridors
- No fixed transfer fees: small rate markup only
- Euronet Worldwide regulated: NASDAQ-listed parent company
Remitly: Fast Transfers to Emerging Markets
Remitly specialises in fast, low-cost transfers to South Asia, Southeast Asia, Latin America, and Africa. It offers two tiers: Economy (cheaper, 3-5 days) and Express (within hours). Both are cheaper than PayPal for the same corridors. Remitly is FCA authorised in the UK and FinCEN registered in the US.
For transfers to India, the Philippines, Mexico, or other high-volume emerging market corridors, Remitly regularly undercuts PayPal by $25-40 per $1,000 sent.
- Economy and Express tiers: choose between lower cost or faster delivery
- Low fees to emerging markets: often $2-4 per transfer
- FCA authorised: regulated in the UK and US
Frequently Asked Questions
How do I use PayPal for the first time?
To use PayPal for the first time, go to paypal.com and click Sign Up. Choose a Personal account, enter your email address and create a password, verify your phone number, and link a bank account or card. The whole setup takes around five minutes. Once your email is confirmed, you can immediately send and receive payments. Start by sending a small test payment to a friend or making a low-value online purchase to get familiar with the flow before making larger transactions.
How do I use PayPal to send money to someone?
How do I use PayPal to send money? Log in, click Send and Request, then enter the recipient's email address or PayPal username. Choose the amount and select whether you are sending to a friend (no buyer protection) or paying for goods and services (buyer protection included). Review the fees if any apply, select your payment method, and click Send. The recipient is notified instantly and the funds land in their PayPal balance immediately.
How do you use PayPal to receive money?
How do you use PayPal to receive money? Share your PayPal email address or your PayPal.Me link with the person sending you funds. They send the money and it arrives in your PayPal balance automatically. You do not need to do anything to accept it. Once received, you can leave the funds in your balance for future PayPal payments, or transfer them to your linked bank account. Bank transfers typically take 1-3 business days in the US and up to 1 business day in the UK via Faster Payments.
How do I use the PayPal app on my phone?
Download the PayPal app from the App Store or Google Play. Log in with your PayPal credentials and enable Face ID or fingerprint login for fast access. How to use the PayPal app mirrors the website: tap Send and Request to transfer money, tap Wallet to manage your balance and payment methods, and tap Activity to review your transaction history. The app also lets you generate QR codes for in-person payments, create invoices, and manage security settings from your phone.
Does PayPal charge fees when you send money?
Domestic Friends and Family transfers funded from a bank account or PayPal balance are free in the US and UK. Funding a Friends and Family transfer from a credit or debit card adds around 2.9% in fees. Goods and Services payments incur a fee on the seller side (2.9% plus a fixed amount in the US), not the buyer. International transfers are the most expensive: PayPal applies a 3-4% currency conversion markup on top of the exchange rate, plus a transfer fee of around 5% capped at $4.99. On a $1,000 international transfer this can total $30-45.
How do I use PayPal to pay online?
At checkout on any supported website, click the PayPal button. A PayPal pop-up or redirect will appear asking you to log in. Once logged in, select your payment method (PayPal balance, linked bank, or card) and click Pay Now. The payment completes instantly and you are redirected back to the merchant's confirmation page. PayPal is accepted at millions of online retailers. If no PayPal button appears, check the site's payment options or look for PayPal in the card payment section.
How do you use PayPal for international transfers?
How do you use PayPal for international transfers? The process is the same as domestic: log in, click Send and Request, enter the recipient's email address, choose the amount in your currency, and PayPal converts it at its rate. The recipient receives the equivalent in their local currency. The key issue is cost. PayPal adds a 3-4% markup to the exchange rate and charges a transfer fee, totalling $30-45 on a $1,000 send. For international transfers, Wise, Xe, or Remitly offer the same ease of use at a fraction of the cost.
How do I add money to my PayPal account?
To add money to your PayPal balance, go to Wallet in the PayPal app or website and click Transfer Money, then Add money to your balance. Select your linked bank account, enter the amount, and confirm. Bank transfers typically take 3-5 business days in the US and are usually same-day in the UK via Faster Payments. There is no fee for adding money from a bank account. Alternatively, you can skip pre-loading and fund each payment directly from a linked card or bank account at the point of sending.
Is PayPal good for sending money abroad?
PayPal works for international transfers and is accepted in most countries, but it is not the most cost-effective option. PayPal charges a 3-4% currency conversion fee on top of the mid-market rate, plus a transfer fee. On a $1,000 transfer you could lose $30-45 in fees. Specialist services like Wise, Xe, and Remitly are built specifically for international money transfers. Wise uses the mid-market rate with fees of around $4-8 on $1,000. Xe charges no fixed fees. Remitly offers low-cost express transfers to emerging markets. All three are regulated and equally safe to PayPal.
Now that you know how to use PayPal across all its core features, you can send and receive money domestically with confidence. For international transfers, compare rates before you commit. The difference between PayPal and a specialist service on a $1,000 send is often $30-40. Use the comparison tool above to see the real numbers before you transfer.
Mohammad Humaid
Verified AuthorMo is the founder of MoneyTransferStore. As an expat who has experienced the challenges of sending money across borders himself, he set out to help others like him avoid hidden fees and unfair exchange rates on international transfers. With a background spanning fintech, payments, and Web3, Mo brings years of practical experience to building a platform focused on transparency and trust.
