What is PayPal used for?

PayPal offers online payments, invoicing and checkout for merchants and individuals, plus consumer features like card rewards and pay-over-time options. It is a good fit for accepting payments on small online shops, freelancers invoicing clients, and paying friends and family online.

How much does PayPal cost?

PayPal is a paid product with no free plan.

Is PayPal open source?

No. PayPal is proprietary (closed-source) software and can't be self-hosted. Open-source alternatives to PayPal include Hyperswitch and BTCPay Server.

What are some alternatives to PayPal?

PayPal competes with Stripe, Square and Adyen. For open-source options, see Enlisted's ranked list of open-source PayPal alternatives.

PayPal: features, pricing and alternatives

About PayPal

PayPal is a long-running online payments service used by both individuals and businesses. Consumers use it to pay for goods online and in stores, send money to others and keep a balance, while merchants add it as a checkout option and use it to send invoices and receive payments.

The consumer app promotes a debit card with category-based rewards, offers from partner brands, and pay-later options such as interest-free installments and longer monthly payment plans. It also advertises a cash back credit card and special financing, and states that payments are encrypted and full financial details are not shared with merchants.

PayPal is proprietary software operated as a hosted service, with separate personal and business offerings. Fees depend on the product and country, so the pricing section of the PayPal site should be consulted for the current rates.

Key features

Checkout option for online merchants
Invoicing and payment requests
Send and receive money between people
Debit card with category-based rewards
Interest-free installment payments
Encrypted payments that hide full financial details

Good fit for

→Accepting payments on small online shops
→Freelancers invoicing clients
→Paying friends and family online

Tags: payments; checkout; invoicing; money-transfer; buy-now-pay-later; merchants; fintech

PayPal: questions and answers

What is PayPal used for?: PayPal offers online payments, invoicing and checkout for merchants and individuals, plus consumer features like card rewards and pay-over-time options. It is a good fit for accepting payments on small online shops, freelancers invoicing clients, and paying friends and family online.
How much does PayPal cost?: PayPal is a paid product with no free plan.
Is PayPal open source?: No. PayPal is proprietary (closed-source) software and can't be self-hosted. Open-source alternatives to PayPal include Hyperswitch and BTCPay Server.
What are some alternatives to PayPal?: PayPal competes with Stripe, Square and Adyen. For open-source options, see Enlisted's ranked list of open-source PayPal alternatives.