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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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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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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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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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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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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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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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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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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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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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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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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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

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Jackie Spokane, WA

I have been very happy with all transactions I have made through Paypal - I've never had a problem, but appreciate the security of paying for goods and services.

5 years ago

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Yanesezah Fenelon Delray Beach, FL

PayPal is a very convenient mobile wallet to use for online stores. It makes the payment process quick and easy. I like that PayPal is secure and protects your information.

5 years ago

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hminfo Olney, MD

I increasingly am using PayPal online for purchases where I had to manually enter my credit card every time. It is a much easier way to buy products online.

5 years ago

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Linda Green Poughkeepsie, NY

Awesome way to pay for products and services. Efficient at escalating claims for products or services not received. Great way to keep track of your purchases.

5 years ago

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mikala gneiting Ammon, ID

Good customer service. They help you with an issue until it is resolved. I live the convenience of shopping online. When I see a PayPal checkout, I know it is safe!

5 years ago

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Cdavid St Louis, MO

Love Paypal. I feel safe making purchase through Paypal. I like being able to use different credit cards for purchases and it is easy to transfer fund to my bank account.

5 years ago

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Opi Logan, UT

Paypal has always provided the highest security measures and ease of use is excellent. Transferring funds is easy and quick. Is my go to for all online payments.

5 years ago

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STurner Saratoga Springs, UT

I enjoy having easy access to pay friends and family or companies I order from all with the same account. It’s so convenient and most everyone accepts Pay Pal.

6 years ago

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Christopher Whiting Los Angeles, CA

Great tool and easy to use. I use it for personal transactions and I have an account for my business. They have been around forever and are easy to trust.

6 years ago

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Morgan whiting Los Angeles, CA

I use PayPal when ever the option is given. It is way faster and easer. It will autofill in your address and info and you don’t have to enter in card info!!!

6 years ago

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Luke Swierczynski Troy, MI

Great mobile wallet offering. Not my first choice but still super easy to use if others are not accepted.

4 years ago

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Tiffany I Gaithersburg, MD

I’ve used PayPal for years. It’s a trusted site, accepted everywhere. I like that I can easily store all of my credit/debit cards in one place.

5 years ago

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Mary Hardy Annapolis, MD

Paypal is simple. You enter your information and that's it. Almost all my online shopping stores are now excepting paypal.

5 years ago

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Frances Harmatuk Baltimore, MD

I love the convenience of paying with pay pal, especially when there is so much online ordering of goods and services these days.

5 years ago