What is PayPal Exactly?

Last updated: February 21, 2021

If you have never used PayPal before, you could be forgiven for thinking it is a type of online bank account. Although it is subject to many of the same regulations and consumer protection laws, it is not in-fact a bank account. PayPal is commonly known as an E-wallet, an online payment service that acts as an intermediary between your bank and vendor/service provider to facilitate fast and secure online payment transfers.

A PayPal account connects to your bank account or credit card. It allows account holders to arrange online transactions using a personal email address to another party with a PayPal account. Using an email address to process online purchases, cash transfers and receiving payments is safer than using bank transfers or credit/debit cards online. The reason for this is simple. Logging in to your PayPal account with your email address to authorise a transfer eliminates the need to provide the receiver access to sensitive financial information.

Aside from neutralising the risk of dishonest merchants using your financial information, PayPal makes processing payments fast and easy. PayPal stores bank account and card information, so you never have to type this information each time you wish to complete a transaction. The only information required to authorise a payment is your account email address and a password. This additional level of security offered by PalPal makes it an excellent choice for depositing and withdrawing money to and from an online casino and other legal gambling websites.