The gig economy is alive and well. In its wake, brands surrounding the business model have flourished. Reports show, if the gig economy keeps growing at its current rate, more than 50% of theUnited Statesworkforce will participate in it by 2027.
This is why the stock for PayPal continues to soar as more people adapt to a freelancing society. They need a place to transact internationally and receive secure payments.
What is PayPal?
Whether yousend moneyor receive it, PayPal is one of the most trusted online payment systems in the world. It serves as an alternative to traditional paper methods like checks andmoney orders. PayPal is based on e-mail addresses, which makestransferring moneyeasy. The funds are pulled directly from yourPayPal balanceor alinked bank account.
The PayPal process is based on a person-to-person transaction betweenaccount holdersin the system. Both parties must have an account tomove money. You cannot receive ortransfer moneywithout one.
If your account is verified, there is nomaximum amountor cap on what you can send. In asingle transactionyou may transfer up to 60,000US dollars, but might be limited to $10,000 in some cases. This is due to differentcurrency conversionandexchange rates.
The platform offers 24/7 fraud detection monitoring and will alert you if any suspicious activity takes place. PayPal also lets you check out faster online with a one-clickpayment method. A business can even link theircredit cardto aPayPal accountand still receive all the points, miles, and rewards they would with a normal card. YourPayPal moneygoes a long way!
PayPal is one of the fastestmoney transfer servicesonline. It only takes 1-2business daysfor the funds to hit yourlocal bank. It’s cheaper and faster thanWestern Unionor any otherbank transferservice online.
A PayPalwire transferis still one of the quickest and most trusted ways to transact.
Setting up aPayPal Account
Although setting up aPayPal accountis free, you still need to provide enough personal and financial data to make it secure. This includes your contact andbank accountinformation. You can also add acredit cardordebit carddepending on how you want to do business. The idea is that it’s a centralized location for all your finance channels.
You must first verify you are the rightful owner of the account. This is done by scanning a photo ID along with other required documents (proof of address, etc).
Users also have the option to download the PayPalmobile app. The app allows you to easily send amoney transfertofriends and familyfrom anywhere. The app is free and has features like built-in donations and payment tracking.
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PayPal Charges
PayPal’s feescan rack up. This is how they stay in business since accounts are free. There is nofixed feebecause the rates for aninternational money transfervary by country. If you are sending a personal transaction to friends or family, the PayPalwire transfer feeis considerably low. It’s free within theUnited States, and .3%-2% of the transaction amount internationally.
If you fund awire transferfrom PayPal (or to PayPal) using acredit card,debit card, orPayPal credit, your fees increase. The cost, in this case, ranges from 3.4%-3.9% of the total transaction amount, plus a smallfixed fee(depending on the currency involved).
If you are using PayPal tosend moneyinternationally, you pay acurrency conversionspread of 2.5%-3%. This cost is added to the wholesaleexchange rate. This means PayPal takes theexchange rateof a third party and adds its conversion spread. This can vastly increase charges depending upon the mid-market rate. That’s what makesXoomandTransferwisesmart alternatives for international business.
International Transfers
When arranging to send or receivemoney overseas,PayPal account holdersgenerally useXoom. It’s a PayPal service that is an electronic transfer and remittance provider for sending money internationally. Consumers can transfer funds, pay bills, and reload phones from theUnited Statesand Canada to 131 countries globally.
Xoomoffers a money-back guarantee with SMS alerts for your peace of mind. The fees forthe appvary by country. It won’t be the same to send cash to family in Albania as it is inHong Kong. There’s no need toGoogletheexchange rate, however, because the platform does everything for you. Their pricing is completely transparent.
Transferwiseis another option for a PayPalinternational transfer. The brand supports more than 750 different currency routes across the world, including:
- USD
- EUR
- GBP
- AUD
- CAD
They also provide multi-currency accounts to facilitate international business. The service is free and pricing varies by theexchange rate.Transferwiseis a great brand in the sense that the costs are transparent and they offer the lowest rates on the market.
PayPalMastercard
To access your funds immediately, you can sign up for the PayPal Cash Card. This is not acredit cardand PayPal is not a bank. Therefore, the brand itself does not take deposits.
Rather, it’s an exchange between you and another party (with PayPal being the middle entity). You do not receive any interest rates on the card, but they can be used anywhereMastercardis accepted (it does not come inVisaform).
You can also use the card at anatmto withdraw your funds immediately. The limit is usually $300 per transaction, with a $3 fee. Daily limits may vary byaccount holder. Remember, this is notPayPal credit. If there are no funds in your account, the card may be declined or pull from yourfinancial institution(depending on your settings).
How to Perform a PayPalWire Transfer
As PayPal is the global leader in digital payments, they have a lot of partners to help get the job done. To send a PayPalwire transferthrough, just complete these simple steps:
- Securely link yourbank account, credit, ordebit cardinformation tosend money.
- Enter the email or mobile number of the recipient.
- The funds are deposited straight into theirPayPal account.
- Notifications are automatically sent out to the recipient.
The process is as simple as that. Keep in mind the type of transfer you wish to make. Some of the PayPal partners offer much cheaper rates for international transactions. Overall, PayPal is a brand you can trust. The company always offers leading-industry security for any transaction you make online.
Now that you have a more thorough understanding of making a wire transfer with PayPal, have you considered additional payment options? It’s possible your partners are using something else. Check out our latest ebook, Signs You’ve Reached PayPal’s Tipping Point, for more.
