What is PayPal?
Internet Marketing Dictionary | PayPal

PayPal is a really neat system that lets you send and receive money by email.

The PayPal system is a simple to use service that links your email address to an online account.

yourname@yourdomain.com <=> your account with PayPal

Once you've set up a PayPal account, you can then pay money in just like you would to a bank. This money is then linked to your email address which in effect acts as your bank account number.

If you then want to pay someone using PayPal all you need to do is log on to your own account and issue instructions using a simple form. PayPal then takes the money from your account and credits it to the account of the person you want to send the money too.

At the same time, an email is sent to the recipient telling them that they've just got more money and to you telling you that you've sent some money.

If you don't have a PayPal account you can still receive money. In this case PayPal emails the recipient and tells them that they have some money with PayPal and that if they open an account, they can get it sent to their own bank account.

The process of opening an account with PayPal is a bit tedious mainly because of all the money-laundering checks that go on these days, but once you have an account, you'll find it useful over and over again.

To get money out of your PayPal account and into your own bank, you just issue instructions via your PayPal control panel.

Online marketers use PayPal heavily because it is such an easy way of taking and making payments. For example, many affiliate commission payments are made by PayPal on a regular basis.