It is a fact universally acknowledged that when it comes to online payments, PayPal is one of the most favoured solutions among customers. However fewer people may know that PayPal doesn’t just help with online customers. It is also useful for freelancers and business owners, who are looking for quick and safe online transactions with the lowest operational cost.

How it works

Once you create a free account with PayPal, you can send money to anyone with an email address using your PayPal balance or another funding option of your choice i.e. credit or debit card. This makes online transactions quicker and easier.

Nowadays, PayPal is the world’s largest online payment network with over 20 million users across 38 countries. It is the preferred method of payment for large websites such as eBay, since it guarantees effectiveness and security. However, PayPal offers more than an operative way to buy goods online. It is a great example of a successful Fintech product, using innovative technology to aid financial transactions. As a result it continues to increase in popularity.

Understanding what makes PayPal a Fintech company

Fintech reviews suggest that some companies come up with innovative ideas, while others take already established ideas and execute them in a better way. PayPal belongs to the first category with two major innovations in its favour: the digitalisation of money and the rising use of mobile devices for transactions. For example, 5 years ago only 1% of PayPal’s transactions were executed on mobile devices. Nowadays, the percentage has risen to approximately 33%.

It may be hard to see but banks, as we know them, are going through a widespread transformation. Modern banking is completely different from what it used to be 10 years ago. That’s partly due to Fintech companies and the capacities they offer.

Recent Fintech reviews suggest that these new technologies are game changers in the wider financial sector. However, with power comes responsibility and we should be careful to protect our personal data from potential leakage. Most Fintech companies offer perfectly safe platforms for transactions. However protecting yourself from loss is of growing importance in this new sector, regardless of whether you are a customer or an investor.