Freemium, from Free personal account (transaction fees apply for business use and certain transfers)
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Last updated
July 19, 2026
Founded
1998
Headquarters
San Jose, California, United States
Free PlanWeb AppiOSAndroidAPI
Overview
PayPal is a publicly traded online payments company that lets consumers pay online, send money to friends and family, and lets merchants accept payments on their websites and apps. It traces its roots to Confinity, founded in 1998, and has operated as an independent public company (Nasdaq: PYPL) since its 2015 spinoff from eBay.
Headquartered in San Jose, California, PayPal is one of the most widely recognized names in digital payments, with deep integration across online retailers worldwide and ownership of Venmo, a leading US peer-to-peer payment app.
Key Features
Consumers use PayPal to shop online, send peer-to-peer transfers, and split purchases with the Pay in 4 buy-now-pay-later option. A linked PayPal or Venmo card also lets users spend their balance directly.
Merchants rely on PayPal Checkout and invoicing tools for smaller businesses, while larger platforms use Braintree, PayPal's payment processing subsidiary, to accept cards and digital wallets at scale.
Pricing
Opening a personal PayPal account is free, and there is no monthly subscription fee for standard use. PayPal instead earns revenue through per-transaction fees charged to merchants, along with fees on certain transfers, currency conversion, and instant withdrawals.
Business and Braintree pricing scales with transaction volume and payment methods accepted, and larger merchants can negotiate custom rates directly with PayPal.
Key Features
PayPal Checkout — A one-click checkout button that online stores embed to let customers pay with a PayPal balance, card, or bank account.
Peer-to-peer transfers — Send money instantly to friends and family using an email address or phone number.
Pay in 4 — A buy-now-pay-later option that lets shoppers split eligible purchases into four installments.
Invoicing — Create and send professional invoices for freelancers and small businesses to collect client payments.
Braintree integration — A full-stack payment processing platform for larger merchants needing cards, wallets, and local payment methods.
Venmo integration — Social peer-to-peer payments popular among US consumers, owned and operated by PayPal.
Currency conversion — Accept and convert international payments for cross-border e-commerce.
PayPal and Venmo cards — Debit and credit cards that let users spend their PayPal or Venmo balance directly.
Pros & Cons
Pros
Extremely wide merchant and consumer adoption worldwide
Free to open a personal account with no monthly fee
Buyer and seller protection programs on eligible purchases
Broad product range spanning Checkout, Braintree, Venmo, invoicing, and Pay in 4
Recognized, trusted brand that can improve online checkout conversion
Cons
Transaction fees can be higher than some competitors for small businesses
Account holds or freezes are a recurring user complaint
Customer support can be slow to resolve disputes
Currency conversion rates include a markup over market rates
Pricing
Personal Account Free N/A
Business Account Free to open (per-transaction fees apply) N/A
Personal accounts are free to open; PayPal earns revenue from merchant transaction fees and certain transfer or conversion fees.
Who founded PayPal?
Confinity, PayPal's predecessor, was founded in 1998 by Peter Thiel, Max Levchin, and Luke Nosek; it merged with X.com in 2000 and adopted the PayPal name in 2001.
Is PayPal publicly traded?
Yes, PayPal Holdings trades on Nasdaq under the ticker PYPL and has been independent since its 2015 spinoff from eBay.
What is the difference between PayPal and Payoneer?
PayPal is primarily a consumer wallet and merchant checkout brand, while Payoneer focuses on B2B cross-border payouts and marketplace seller receivables.
Does PayPal own Venmo?
Yes, Venmo is a PayPal-owned peer-to-peer payment app popular in the United States.
What is Braintree?
Braintree is PayPal's payment processing subsidiary used by larger merchants and platforms to accept card and digital wallet payments.