today we're just going to take a quick look at a simple question what exactly is PayPal how does it work the easy answer is it's a way to send and receive payments there's a little bit more than that going on you got your buyers and your sellers involved or senders and receivers let's take a closer look give you a little bit better knowledge on what exactly there is happening here and see how it might help you out so first you have the buyers side when you want to make payments with paypal of course the first thing you do is to create your PayPal account and you'll treat it like a wallet this is your digital wallet or your paypal wallet just like a regular wallet you can hold cash in there in the form of a PayPal balance you can have your debit card and credit cards in there from various banks or credit card providers you can have multiple bank accounts so checking accounts or savings accounts from a local branch from online banks you can out all these into that PayPal wallet and when you make payments you can choose whichever funding source you'd like to use so again your PayPal balance would be your cash bank accounts could also be kind of considered cash and then you've got your credit and debit cards the cool thing is when you make payments with PayPal all those funding sources are protected inside that PayPal wallet so the seller all they're going to get is your name your email address and a shipping address interests required if they need to send you something so that sensitive information like the bank account numbers credit card numbers and expiration dates and security codes the actual billing address associated with these these funding sources that's all protected behind the paypal barrier or inside your paypal wallet so consider if you go shopping on 20 different websites and you put in a credit card number all each of these 20 sites well that's 20 different chances that they could be saving your card number in their database I'm not supposed to be doing that but a lot of them do and you know if they get hacked and that data gets stolen now your credit card numbers of our bank account information is included in that hat data obviously this isn't a good thing but again when you pay with PayPal none of that information is provided to the seller all they're gonna get is your name email and shipping address so it protects you you have this buyer protection behind that PayPal barrier this is one of the biggest advantages of using PayPal to pay for things now highly recommended the flip side of that is sellers or when you need to receive payments PayPal makes that quick and easy for you have a lot of different products that you can do as a seller different ways to integrate it in your website or application to use it at your retail store I'll break some of those down in more depth in the future videos but for now just understand that it makes it really easy for you to take payments in general so you can take PayPal payments where people specifically choose I'm gonna pay with PayPal or you can take direct credit card launching a credit-card number and they won't have any idea that PayPal is actually still being used behind the scenes you can take payments over the phone just punch in a credit card number into a virtual terminal or you can use the PayPal here app for example to take payments on your mobile device or on your computer at a trade show or even in your retail shop so they have a lot of different ways to receive payments and it makes it really quick and easy it all drops into a single account into your PayPal account and the money is typically available instantly so there's no batching out at the end of the day or anything like that that you find with a lot of other credit card processors so again consider some of the advantages that we talked about the buyers when you're written when you're selling anything products and services online or in person you really want to make sure that you at least include PayPal as an option if you don't those people who prefer it because of the advantages it gives them about protection that it gives them when they pay that way they're not going to want to buy from you you're gonna go find somebody else so if you're tracking conversion rates with Google Analytics or anything like that for example you'll find that when you add PayPal as an option the conversion rates are typically going to go up like quite a bit so it's definitely recommended to at least include PayPal as an option so then we have PayPal as the option you might as well use them for your direct credit cards - everything will drop into a single account and that just makes it easy on your bookkeeper save some time and some money on you know reconciling account that I have a credit card account over here or PayPal account over here and different you know different types of payment accounts you just have that one account everything falls in there and it's nice and easy to manage so again this was just a real quick summary of kind of what's going on with PayPal from the buyer side from the seller side some of the advantages gonna break that down in more depth and detail later into different videos but I just wanted to give you a you know a basic understanding of what's going on here and how it might be helpful to you if you have any questions look at the description below I have some contact info there for means you can reach out to me directly and I'll be happy to help you with anything you need good luck and happy PayPal
