PayPal was founded in 1998 as a response to the demand for a fast, safe, and simple solution to making purchases online. Capitalizing on the rapid growth of online auction leader, ebay, PayPal quickly rocketed to the top of online payments between people. Leveraging this partnership with ebay, PayPal continued to grow, acquiring companies and becoming a tool for online shopping. The company has developed solutions for web payments globally. Recently, PayPal and ebay ended their long-term partnership and PayPal is poised to grow in the mobile wallet industry, specifically for smaller mom-and-pop businesses with their mobile app and PayPal Here POS terminals and card readers.

PayPal is lacking in the number of brick-and-mortar retailers at which accept PayPal payments, which hurts their overall rating with the Review Team. According to the company, PayPal will soon be offering contactless payments at existing terminals, which will greatly expand their customer base.

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The Good

Easy setup
Link your bank
Security measures

Easy Setup

PayPal is one of the leaders in the online payment field and is working to expand their market share in the mobile wallet industry. PayPal's strengths include:

PayPal is extremely easy to set up and use the service and app.
PayPal's track record allows for relationships with the majority of financial institutions, with easy integration of bank accounts from most banks nationwide.
PayPal is commonly used inside apps for purchases.

In order to use your mobile wallet, PayPal requires users to create an account with them and then download their free app. This process is straightforward and takes less than 5 minutes to complete. PayPal requires a bank account to support the service. PayPal itself is similar to a type of checking account from which users may use to make purchases. One of the benefits of this particular arrangement which has long been appreciated by PayPal's millions of faithful users is that when making purchases, one's financial information is never shared. This feature adds an extra layer of security to making purchases. Buying items online in various apps is as simple as clicking/tapping a "Pay with Paypal" button, signing into one's PayPal account and confirming the purchase.

Link your Bank

Users are able to link their current bank account information to their PayPal account quite seamlessly, and most major banks are compatible with PayPal, come with links allowing the user to easily find the information required to set up and confirm their account information with PayPal. For those who belong to a smaller bank or credit union, the set up and linking of a bank account requires a few additional steps, but remains simple to complete. PayPal's mobile app is compatible with iOS (iOS 7.1+), Windows, and most Android devices.

Security Measures

PayPal offers their users security and stability, which they are expanding to the mobile wallet industry. With PayPal's global customer base and many people having PayPal accounts, phishing scams are plentiful. One of them involves receiving an email which requires users to enter their PayPal information, upon so doing, they have given access to their account (and link bank accounts and credit cards) to scammers. Users should never give their PayPal account information as a response to an email. PayPal's customer service is helpful and live help is available 24 hours per day so that users may report or confirm any information which does not seem accurate or originating from PayPal.

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The Bad

Few Mobile Wallet options
Limited locations
Customer complaints

Few Mobile Wallet Options

PayPal holds a solid market share in their online payment solutions as well as with their in-app purchase capability. However, at the time of this review, there are few real mobile wallet options for users to make everyday purchases without scanning their cards. The most significant drawbacks in using PayPal as a mobile wallet include:

PayPal has their own point-of-service terminals which limits the number of retailers which accept PayPal as a method of payment.
PayPal's POS terminals are not contactless and their app does not offer contactless options with any of the current technology available.
Using PayPal at a brick-and-mortar store is not convenient, nor straightforward and would require steps which are cumbersome to the payment process, slowing down the transaction significantly.

As has been shown with PayPal's business model and track record, the company is working towards developing an option to make contactless payments a reality with the recent acquisition of Paydiant. Paydiant will give Paypal access to QR-code payment terminals, the same process that retailer backed CurrentC is currently beta-testing in Columbus, OH and plans to expand to a nationwide market soon.

Limited Locations

While the number of physical stores you can pay with PayPal is growing, it currently is low when compared to other mobile wallets. PayPal is in the process of becoming compatible with QR-code POS terminals. The company looks to expand further into offering the customers the ability to pay using Near Field Communication capability. As is and at present, this app does not offer the option to have a fully digital wallet.

Customer Complaints

There are several complaints from users of the PayPal app which state that the app is prone to malfunctions, and that it slows down their device. Further bug fixes will be needed for this app to become more stable and user-friendly.

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The Bottom Line

While PayPal is an excellent payment application inside other apps and for making purchases online, it still has many features which need to be added before it truly becomes a mobile wallet app which is compatible with the POS terminals at most brick-and-mortar retailers. With recent acquisitions and a solid track record, the Review Team is confident in saying that PayPal is not far off from adding additional capabilities to their services. However, with the standardized criteria created for rating mobile wallet apps, PayPal falls short in their offering. The remain a recommended option for their current strength, but are not able to be fully endorsed by the Review Team because of their voids in features which comprise a comprehensive mobile payment app.

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User Reviews

Star Rating

4.4

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143 Reviews

Review Breakdown

5 grade

60%

4 grade

26%

3 grade

2 grade

1 grade

Sentiment Criteria

Value

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Quality

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Service

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Trustworthiness

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Eddie Rios Ogden, UT

Paypal has been a primary small business financial tool. It has allowed my customers to seamlessly buy products and quickly and safely pay for them. The Paypal logo is hugely recognizable making this platform an obvious need in the retail setting. I can't live without Paypal, both as a business or as a consumer. I'm locked into it both ways, and happy about it.

6 years ago

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Oliver Sherren Provo, UT

I LOVE PayPal. Their fraud department is amazing, their customer service is amazing, their app is amazing, everything about PayPal I love. While it's not as convenient to use as Venmo, it still is fantastic for every other business transaction that you could think of. The one advantage that PayPal has over Venmo is that PayPal customer service will intervene for product purchases that were not advertised correctly. I've had a few occasions where I received a product that was not what was advertised and PayPal froze the money before it could reach the seller and helped negotiate. Just an amazing company.

5 years ago

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Dana Hatfield Bullhead City, AZ

I use PayPal whenever possible. I like the security they offer me with my purchases. I like the diversity the offer with the products they have. Gives me many choices in dealing with my money. But my favorite part is the security they offer.

4 years ago

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Mandi Colorado Springs, CO

I love using Paypal to complete transactions when shopping online with a company I am not familiar with. I can rest easy knowing that my payment will be easy and keep my banking information safe for my transactions. The interface of the website and app is intuitive and easy to use. I also can use Paypal for billing for the private tutoring services that I provide in my local community. It allows me to send a request for payment and my customers can easily pay me electronically without me having direct access to any card or banking information.

4 years ago

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Lizzy Puentes Tallahassee, FL

Paypal is like an online wallet. It is a safe way to make purchases if you do not fully trust the online website you are making a purchase from. PayPal returns your money if the website commits fraud and steals your money. It is very helpful! You can also send or receive money from someone else's PayPal account.

6 years ago

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JDWain Tallahassee, FL

Paypal is a great way to send money and its how i pay my rent each money instead of having to write out a physical check. also paypal owns Venmo which is a great and easy way to send money back and forth with friends and family. Paypal is better and safer than some of the other companies like cashapp

6 years ago

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Cassidy Gundersen Orem, UT

I have used Paypal for years and have never had an issue with its service. Their verification process is good and I have always felt that my money is secure. Although, I do not like the 3% fee that follows business transactions. As a small business owner- that extra money can add up fast! One of the biggest benefits to using Paypal is that it is accepted as a payment method for many online stores and companies. I am able to link it to those accounts easily and quickly by signing in.

8 years ago

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murfday College Station, TX

I feel like I see it accepted at almost all online shopping sites. I’m sure it’s not, but it seems like it. I use it often because I like paying for things online without having to enter my credit card number. It is also easy to send and receive money. They also cover any fees when you donate to charities for Giving Tuesday and other times. I have also been surprised with a free $5 or so for using their app or other occasions.

5 years ago

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Marcie M Idaho Falls, ID

PayPal is awesome. I love the convenience of using it to pay when I’m shopping online and don’t want to take the time to enter all my credit card information. It’s quick, secure, and convenient. It’s also nice to have the option of using PayPal when sending or receiving money from a friend or a small business. I’ve been using PayPal for years and have never had a security issue. I feel like like it’s completely safe and secure. Love it!

5 years ago

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Sara Jane Crestwood, KY

Paypal is secure! I use it for personal money transfer as well as secure shopping on internet websites. I once had an issue where a retailer never sent me the product. Paypal contacted them for me and refunded my money quick. I appreciate the service making online shopping worry free. I also used the service for a campaign fund. It was fantastic for managing donations.

8 years ago

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scotty Saint Paul, MN

I haven't still currently use paypals mobile online wallet they have been security the ease of use online is amazing and you can incorporate payments through PayPal with your mobile won't work and use with almost any merchant or online service

4 years ago

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Mary Daniels Westland, MI

I’ve been with PayPal for some years now. I use them for my online shopping and services paid for my business. Invoices are very helpful through PayPal and I can send my clients a receipt of payment and detailed purchases. So far I’ve experienced no issues with this company!

4 years ago

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Becca Amiot Salem, VA

PayPal is another great money transferring app or just for making payments. I like that many websites are linked with PayPal as well. I have used PayPal for both money transfer and payments and never had an issue.

5 years ago

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Leonard Leo Potomac, MD

PayPal has grown since its eBay only transactions. Alongside credit card payments for online checkout, I find PayPal very convenient. No longer do I have to enter 16 digit CCC#s and address. I easily click on PayPal and everything is populated. Easy Peasy. If you want to pay some one or vice versa, just trade your email address.

5 years ago

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Robyn Brady Kent, OH

I use PayPal for anything that allows it. More secure than anything else and they provide statements and will help you with disputes if necessary. Great company and great customer service.

5 years ago

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Tiffany Baines Akron, OH

Easy to use, understand, access and use. Ordered a card to use connected to my pay pal account and I got it within a few days. An able to use this service, and card for many things. Very helpful!!!

6 years ago

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Tanner Cook Gilbert, AZ

PayPal makes it very easy to collect money on eBay, or purchase items on eBay. Because of that, it’s my go to app to keep money on. If you do anything on eBay, PayPal is a must!

7 years ago

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Hannah Pleasant Grove, UT

Nothing but good things to say about Paypal. It is so nice to not have to go dig through my purse to pull out my card when I'm making online purchases. Signing up has been a huge timesaver in my daily life!

8 years ago

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Michelle Bray Pleasant Grove, UT

I have used PayPal for many years. I have used PayPal to send and receive international funds from my students. I have paid for services and had protective from fraudulent entities. I can easily deposit PayPal funds into my bank account or vice versa to pay for goods. I like this service.

5 years ago

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CJ Milke Olney, MD

Paypal was the easiest way for me to collect money from people when I hold parties where tickets cost money. It is also an easy way to give someone their I Owe You if you owe someone money. Very reliable, all of my payments have always gone through on the first try.

5 years ago Edited September 14, 2021

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Makayla Holland Gaithersburg, MD

I like PayPal because it’s easier paying method for mr go buy things online, and I do a lot of online shopping so instead of putting my card information in I can just pay through PayPal.also I like the fact that you can get an alert or email when somethings I’d purchased. I highly recommend everyone should use PayPal

5 years ago Edited September 14, 2021

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Whitney Wilkins West Valley City, UT

PayPal is such a great way to make payments and also get paid. I've used it to receive payments as an ambassador of a company and it makes it so easy and clear to work with. It's also so quick and easy to pay other people or companies. It's so handy and I can just do it right from my phone.

5 years ago

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Aaliya Ghadafii Tallahassee, FL

The best feature about PayPal is there split in 4 payments features. If I don’t have the total payment for an item I need to purchase at that exact moment I can split the payments and pay for remaining in the future. The feature can be lifesaver for me sometimes.

5 years ago

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Steve Ashby Portland, OR

I've been using Paypal for many years. It is always convenient and a good way to transfer money. Recently I made a big sale through ebay and Paypal was a great way to take payment. I've started using it more to make payments on various websites. Great way to go! I think their rates are sometimes too high, but that is my only complaint and why I didn't give 5-stars.

5 years ago

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Lottielyn Schwenke Orlando, FL

The mobile wallet makes shopping on the go so easy! I first started using it for shopping at a craft fair but have found so many other convenient uses for mobile wallet since then, even accepted at more and more stores than just online.

6 years ago

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Jennifer Garrard American Fork, UT

My husband did some work for a company and we needed to write an invoice for it. Using Paypal to write the invoice was AMAZINGLY SIMPLE . The platform Paypal set up was extremely user friendly and we were able to send it off after just a couple of minutes. Easy, simple, fast, reliable - loved my experience.

8 years ago

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Paula Shearer Omaha, NE

I use my PayPal debit card and PayPal account for almost everything. My only quibble is that you cannot dispute a transaction or cancel a subscription on the mobile app, you have to log into the full website.

5 years ago

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Jaci Rhoades , TX

I love the fact that I don't have to manually enter in all of my information when I make a purchase. I can just click on what I want and click on PayPal and I'm done.

6 years ago

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Hayley Lambdin Orem, UT

I really like their app and that you can easily pay your friends and family. However, I really don't like the fees and how long the money takes to get to you! I missed out on one dang good shopping trip because of Paypal.

8 years ago

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Pauline Causse Draper, UT

I have used PayPal many times, and it's always worked great. It's easy and quick to setup, and I love not having to re-enter my card number every time I'm buying something on a new website. Super convenient!

5 years ago

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Megan Milke Laurel, MD

Paypal is a very convenient system to get money from others. Recently, I held a banquet for a friend in which tickets cost 6 dollars. Nearly everyone who attended paid me back through Paypal. Very reliable company!

5 years ago

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Wilkshake Lehi, UT

I am glad that I chose to use PayPal. I am always relieved when it appears as an option when purchasing online. I trust my info with PayPal and the way they follow through if there is ever a question about a purchase.

5 years ago

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Taylor Hall Los Angeles, CA

I recently started using PayPal, but I am shocked at how easy it is to use, and how many sites except it as a payment method. I love the automatic aspects of it and the security.

5 years ago

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Kristin Fleming Tallahassee, FL

Very trustworthy! I use the app on sites that I am unsure about using my credit card information on. I love it ... quick and easy and I don’t have to pull out my card to type numbers in when paying for things online.

5 years ago

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Mark Troxel Provo, UT

I use PayPal to pay for some internet transactions. I started using their services while making eBay purchases. I keep it as a credit source but pay off any balances every month. I do not pay a monthly or annual subscription fee.

5 years ago

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Heather Barney Logan, UT

Paypal has been a fantastic way to pay for group gifts or split meals. It sure has made life easier by not having to mail checks all of the time. I love that it is a free service!

5 years ago

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Jessica Smith Parker Logan, UT

I love checking out with PayPal online, I love that I don’t have to put my credit card number in on random sites. PayPal is so convenient and helps me feel safe with my online purchases.

5 years ago

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Larson Riverton, UT

PayPal is a convenient way to send and receive money from friends, family, and others in the community. I use PayPal on a regular basis and plan to continue using it. Much quicker than counting cash or writing and cashing checks.

6 years ago

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Lindsay Ploeger Salt Lake City, UT

It provides an ease of payment without putting your credit card numbers all over the internet to people you don’t know. Customer service can be hard to resolve issues with at times but they do try to follow up if you do not receive the goods you’ve paid for.

6 years ago

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Karen Nelson Alpine, UT

Paypal is just so convenient! To transfer money between anyone at all makes life so much easier. I makes online shopping so easy. It make everything easier that involves money matters of any kind.

8 years ago

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Tanner Hales Pleasant Grove, UT

I love using PayPal online. It makes it so much easier for me to trust that my credit card information isn't going to get stolen by some random person who will spend it on heaven knows what. I instantly trust a site that much more when I see that they use PayPal. I have never had any issues with it, and doubt that I ever will.

8 years ago

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Schon Smithfield, UT

I’ve had an account for many years and have never had an issue with it. I use it for many transactions and I feel more secure when I see it is an available option to make purchases.

8 years ago

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Anne Marie Milne Layton, UT

I have bought quite a few things using Paypal. It puts me at ease because I know there is no way someone can get my credit card information. Everyone should use this to make sure their information is safe!!

8 years ago

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courtney tennant Salem, VA

It has never been so easy to pay or send money to someone else. It is so nice not having to whip out a check book overy time you need to pay a buddy.

5 years ago

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Donald Gustafson Colorado Springs, CO

had problems getting payments from apps till paypal contacted me to tell me my profiles were set up in a different country instead of being under U.S

5 years ago

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JD Dunklee Hattiesburg, MS

PayPal is a very reliable and safe way to pay people. I’ve had times where I pay people through PayPal and it’s always super easy and safe to use

6 years ago

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Nicholas Genes Los Angeles, CA

This is my go to option for transaction with strangers I might not see face to face. I like their policies and are pretty dependable when making purchases.

6 years ago

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Hallieford Arlington, TX

I use PayPal whenever it is an option for online payment. It’s so convenient to have my address already put in when checking out.

6 years ago

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Lori Fletcher Saratoga Springs, UT

I was hacked a couple times through Paypal and their customer service took care of things right away. They were easy to talk to and explained how this could happen.

6 years ago

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Jesse Rice Biloxi, MS

For high school fundraising and paying bills, Paypal is second to none when it comes to safety and security of band payments.

6 years ago