PayPal: A Digital Payment System Like Apple Pay
In recent years, digital payment systems have become increasingly popular. One example of a popular digital payment system is Apple Pay, which allows users to make payments digitally using their iOS devices. However, there is also another digital payment system that is no less popular, namely PayPal. In this article, we’ll talk about PayPal and how it works, as well as how it compares to Apple Pay.
What is PayPal?
PayPal is a digital payment system that allows users to make payments online. Founded in 1998 by Peter Thiel and Max Levchin, PayPal was originally called Confinity. However, in 2001, the company changed its name to PayPal. PayPal allows users to make payments online using a credit card, debit card, or bank account.
How Does PayPal Work?
PayPal works by linking a user’s bank account or credit card with a PayPal account. When a user makes a payment using PayPal, the money will be transferred from the user’s bank account or credit card to the seller’s bank account. This process is done online, so users do not need to have cash or a physical credit card.
Here are the steps for how PayPal works:
- Users create a PayPal account and link a bank account or credit card to it.
- Users make payments using PayPal on websites or applications that support PayPal.
- PayPal processes the payment and moves the money from the user’s bank account or credit card to the seller’s bank account.
- The seller receives the money and completes the transaction.
Advantages of PayPal
PayPal has several advantages that make it one of the most popular digital payment systems. Here are some of the advantages of PayPal:
- Security : PayPal has a strict security system to protect user transactions. PayPal uses encryption technology to protect user information and prevent fraud.
- Convenience : PayPal is very easy to use. Users only need to create a PayPal account and link a bank account or credit card to make payments.
- Can be used internationally : PayPal can be used internationally, so users can make payments using their local currency.
- Can be used on various devices : PayPal can be used on a variety of devices, including computers, smartphones, and tablets.
Disadvantages of PayPal
Although PayPal has several advantages, there are also some disadvantages. Here are some of the disadvantages of PayPal:
- Cost : PayPal has quite large fees for some types of transactions. These fees can include transfer fees, currency conversion fees, etc.
- Processing time : The money transfer process using PayPal can take several days.
- Limitation : PayPal has limits on the amount of money that can be transferred online.
Comparison with Apple Pay
Apple Pay is a digital payment system developed by Apple. Here is a comparison between PayPal and Apple Pay:
- Security : Both payment systems have strict security systems to protect user transactions. However, Apple Pay has the advantage because it uses NFC (Near Field Communication) technology which is more secure than PayPal.
- Convenience : Both payment systems are very easy to use. However, Apple Pay is easier to use because users only need to have an iOS device and use Touch ID or Face ID to make payments.
- Can be used internationally : PayPal can be used internationally, but Apple Pay still cannot be used internationally due to limited bank and credit card support.
- Can be used on various devices : PayPal can be used on various devices, but Apple Pay can only be used on iOS devices.
Conclusion
PayPal is a popular digital payment system and has several advantages, such as security, convenience, and can be used internationally. However, there are also several disadvantages, such as high costs and long processing times. Apple Pay is another digital payment system that has several advantages, such as better security and ease of use. However, Apple Pay still cannot be used internationally due to limited bank and credit card support.
In choosing a digital payment system, users must consider the advantages and disadvantages of each system. PayPal is a good choice for users who want to make payments online, but Apple Pay is a better choice for users who want to make payments offline using an iOS device.
