Today, everyone knows that online shopping has come to the fore among the sales of various types of products, services, things and household items. And many people also want to buy goods cheaper and make purchases on foreign sites. So you have to wait longer, but the savings are quite significant. The same way business works. It buys goods in bulk for a small sum and sells them in Ukraine with a markup of 300 percent or more.
What is PayPal?
PayPal is an international payment system that is currently the most popular in the world for purchases, payments for purchases, money transfers, withdrawals, and crediting amounts in different currencies to bank accounts or plastic cards.
Just imagine that this system works with more than 200 countries around the world, but each has its own conditions for use. Previously, electronic auctions were very popular, and it was for such functions that PayPal was invented. The history of the program began back in 1998, and the basis for its creation was the company Confinity. Initially, it was designed only for receiving transfers, but later its functionality expanded greatly. Founders Max Levchin and Peter Thiel.
In 2002, the payment system was bought by eBay representatives for one and a half billion dollars, and today it is a very cool and convenient means of payment, considering that the program supports 25 different national currencies.
Of course, for profitable business cooperation, especially when interacting with different countries and currencies and paying for private orders by individuals, good financial instruments are needed.
How does PayPal work?
The scheme is very simple, after registering your own account you can perform various financial transactions:
- Payment for purchases on the website of any country where PayPal operates.
- Make online transfers around the world.
- Receive money through the system from friends and family, regardless of whether they are in Ukraine or not.
- Send transfers and pay bills independently.
- Request payment from the application user.
- The ability to manage accounts via mobile phone by downloading the PayPal app.
- Opening accounts in different currencies.
- Both individuals and legal entities can work in the system.
Users are also interested in the question: what currencies does PayPal support? Let's note the main ones: USD, CAD, SEK, CHF, CZK, DKK, EUR, GBP, AUD HKD, HUF, JPY, NOK, NZD, PLN, SGD.
Please note that for our country, the program's capabilities are limited, especially for business. Yes, the system works and many people use it. Until 2022, it was possible only to make purchases on international sites and stores, and now there is also the opportunity to make P2P transfers and withdraw funds to cards of Ukrainian banks that are tied to PayPal accounts. All major banks in the country work with the program, PrivatBank, Monobank, Oschadbank, Ukrgasbank, Universal and several other financial institutions. Money is credited after the operation instantly.
This financial platform is not yet developing in Ukraine because there are no good conditions for the prosperity of online trading.
PayPal for Business
First of all, you need to pay attention to the direction of your organization's activity. The PayPal system will be appropriate for marketplaces and e-commerce, but in the case of providing, for example, accounting or logistics services, the functionality will not be appropriate.
When you integrate this feature into your own website, it will be very convenient and quick for customers to pay for your goods and services.
For example, registering and working on well-known platforms such as eBay, ecrater, and Etsy is impossible without activating a PayPal business account.
Unfortunately, in Ukraine, such a payment system does not work with full functionality, and there are various restrictions. Therefore, it is better to consider registering your company in a foreign jurisdiction if you need to work in multi-currency.
PayPal registration
Verification on the site is quite simple and practically no different from other similar platforms. A prerequisite for work is linking a card or bank account. And then we perform the following actions:
- Go to the official website and click the "Register" button.
- In the proposed form, enter your active phone number, email address, create and confirm a password, and wait for an SMS with a code to confirm your actions.
- Next, we set up our profile, enter our email address and the password we created again. We enter our full name, city (town), zip code and residential address, and date of birth.
Tip: In Ukrainian versions, customers may encounter a problem at this stage, the system does not let them continue and notifies them that the postal code is unavailable. The thing is that by default the program selects Russia, you need to go back to the beginning and change it to your country.
- Read the terms of use, check the box at the very end to agree, and click create account. You will be able to choose between "Business", "Premium", and "Personal".
- Now we link a card or account, in hryvnia or another currency it doesn't matter. Cards are suitable for payment systems such as Visa and Mastercard.
- Select the "Add account or card" menu and enter the following details: number, expiration date, CVV code, and address. When you enter the account number, all other data is automatically populated.
- All data has been entered, now you need to click "Confirm and get code."
Tip: Don't be afraid, PayPal will withdraw money for such registration, up to two dollars. And then return it back to your account after 2-3 days. It is impossible to activate with an empty balance on the card!
- Enter the received code in the appropriate window and confirm the operation. That's it! Full verification takes five days, so you can start using your own account only after this period.
How to use PayPal?
Very simple, for personal transfers, just select the "Send" menu, enter the recipient's email and specify the required amount. And for a regular purchase, everything is much simpler. Click "Buy" and the program will automatically transfer you to PayPal, where you confirm the transaction with one click.
When you need money, you click "Order transfer", enter the payer's email, the amount, and send a request for processing.
PayPal fees and charges
They are large and differ from the country of registration of the user and the selected store. And there is also such an interesting thing as currency conversion, the program chooses different types, for example, you pay in hryvnia, and buy in dollars, then the rate may differ significantly from the current one in the country. That is, in addition to the commission ($0.30+ 2.90-4.90%), you will also pay for the conversion. Let's explain in more detail in numbers:
- Transfers between hryvnia accounts within the country are free. There are also stores that do not charge a commission for purchases; it is borne by the seller.
- To a PayPal wallet, bank account, the cost is from 1.99 EUR to 3.99 EUR.
- To the card from 1.99 EUR to 3.99 EUR + 3.4% + fixed fee depending on the currency.
- The exchange rate both within the country and abroad is set by PayPal (based on the wholesale exchange rate current on the day of the transaction).
- For currency exchange, from 3 to 4 percent of the amount.
- Withdrawal of hryvnia to the card is free, currency transactions take 1% of the amount.
Advantages of PayPal
The main advantage of this platform is security! Your card and account data are not available to third parties, you do not enter numbers and verification data on sites, and the payment system very strictly monitors compliance with this condition.
Simplicity, convenience, a simple interface and easy payment, without a bunch of confirmations and entering information. We selected an account mailbox and everything is ready.
Speed of transfers! Even abroad, funds arrive instantly, and every day more than 188 million people around the world use this system.
Disadvantages of PayPal
The threat of fraud still exists. Fraudsters forge letters and write supposedly from the seller, redirecting the client to other web resources where they will receive logins and passwords from the program.
Limited functionality in Ukraine. The company has strict terms and conditions, which means that user accounts can be easily blocked. It is also part of international financial transaction processes and participates in the fight against tax evasion.
Of course, everyone chooses their own payment method, and if you don't buy abroad and don't need to transfer money in this way, then the system is not needed by a person. Otherwise, it is a unified structure that provides the opportunity to make buying, selling, receiving or transferring funds reliable, safe, personalized and simple.
