PayPal review: Everything you need to know

Paypal is one of the most well-known online payment services in the US, with over 430 million active accounts worldwide.¹ For shopping online to sending money to friends, PayPal has become a default option for many Americans.

But how does PayPal actually work in the US, and is it the right choice for your needs? In this review, we’ll cover its main features, pros and cons, fees, and security. Plus, what to expect if you’re considering PayPal’s savings or credit products.

We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.

Learn more 🔎

Table of contents
What is PayPal, and how does it work in the US? PayPal pros and cons How to open a PayPal account? PayPal international money transfer fees and rates PayPal features How to add money to your PayPal account? Is PayPal safe?

What is PayPal, and how does it work in the US?

PayPal is a digital payments platform that allows you to send, hold, and receive money online without sharing your bank details for every transaction. Since launching in the late 1990s, it has become one of the most widely used payment services in the US.

When you open a PayPal account, you can link it to your bank account, debit card, or credit card. Once connected, you can:

• Pay for purchases at millions of online and in-store merchants
• Send money to friends and family domestically
• Receive payments for goods, services, or freelance work
• Move funds easily between PayPal and your bank

Accounts are free to open, and most US retailers and marketplaces support PayPal checkout.

On top of basic transfers, PayPal also offers financial products like PayPal Credit and a PayPal Savings account through Synchrony Bank—both of which we’ll cover later in this review.

PayPal pros and cons

Here’s a quick rundown of PayPal’s pros & cons in the US:²

✅ Pros	❌ Cons
Free to open and maintain an account	Higher fees for international transfers compared to specialized providers
Accepted by millions of merchants in the US and worldwide	Currency conversions come with a 3–4% spread
Free standard withdrawals to a linked US bank account	Standard transfers to a bank can take 3–5 business days
	Not all balances are FDIC-insured

How to open a PayPal account?

If you’re at least 18 years old and a US resident, you can open a PayPal account online in just a few minutes. Go to paypal.com or download the PayPal app, and select the option to create a new account.

You’ll be asked for:

• First and last name
• Date of birth
• Residential address
• Mobile phone number
• Email address (this becomes your login)

Next, you’ll be prompted to create a password and link a funding source, such as a debit card, credit card, or US bank account. PayPal may send a small test deposit to verify your bank details.

In some cases, you’ll also be asked to upload a government-issued ID and proof of address before your account is fully verified. Once complete, your account is active, and you can start sending, receiving, and withdrawing money immediately.

PayPal international money transfer fees and rates

Sending money abroad with PayPal is possible, but it often comes with higher costs than specialized providers. PayPal’s international transfer fees depend on several factors, including the destination country, the chosen funding method, and whether a currency conversion is required.

Here’s an overview of PayPal’s key international transfer fees for US accounts:³

Transaction type	Fee structure
Send money abroad with a PayPal balance or a bank account	5% (min $0.99, max $4.99)
Send money abroad with a credit/debit card	5% (min $0.99, max $4.99) + fixed fee of $0.30
Currency conversion (goods, services, or personal transfers in another currency)	4% spread added on top of PayPal’s exchange rate
Receiving international personal transfers	Free (no currency conversion) + fixed fee of $0.30

PayPal international money transfer: coverage, speed, and limits

PayPal enables you to send money to recipients in over 200 countries and regions, making it one of the most widely reaching platforms for international transfers.⁴

However, not all features (like PayPal Balance withdrawals) are available in every country, so availability can vary by location.

Speed: Transfers are usually instant when sent to another PayPal account, but moving funds from PayPal to a recipient’s linked bank can take 1–3 business days, depending on the country and bank system.

Limits: By default, unverified US accounts can send up to $4,000 per transaction (or sometimes $60,000 with a verified account, depending on currency and eligibility).⁵ Limits may also apply per day, week, or month, and PayPal may restrict new accounts until identity verification is complete.

PayPal features

Here’s what you can do with a PayPal account in the US.

PayPal balance - your digital wallet

With a PayPal Balance account, you can hold money directly in PayPal. This is where incoming payments land, and you can use it to pay online, send money to friends, or transfer funds to your linked bank account.

Depending on your employer and payroll system, you can also set up direct deposits to receive your paycheck or government benefits up to two days earlier than a standard bank.

Once the money is in your Balance, you can spend it instantly through PayPal checkout or the PayPal Cash Card.

PayPal Savings - earn interest on idle funds

PayPal Savings, offered in partnership with Synchrony Bank, is a high-yield savings account available through the app.

• Current APY: 3.80% (variable)⁶
• No minimum balance or fees
• “Goals” feature lets you set up sub-accounts for specific targets (vacation, emergency fund, rent, etc.)

Money moves instantly between your PayPal Balance and Savings, so you can earn interest without losing access to cash when you need it.

PayPal Credit & Pay Later - Flexible financing

PayPal offers two ways to spread out payments:

• PayPal Credit: A revolving credit line you can use anywhere PayPal is accepted. It often comes with promotional financing offers, like 6 months interest-free on purchases of $149 or more if paid in full⁷
• Pay in 4: Split purchases into 4 interest-free installments, charged automatically to your linked bank or card

These options can help smooth out larger expenses, but late or missed payments may result in fees or interest.

PayPal Cash Card - everyday spending

The PayPal Cash Card is a Mastercard debit card tied to your PayPal Balance

• Accepted anywhere Mastercard is
• Withdraw cash at ATMs (fees may apply if outside the MoneyPass network)
• Add cash at retail partners like CVS or Walmart for a fee

It essentially turns your PayPal Balance into a checking account alternative, giving you instant access to your funds for day-to-day spending.

How to add money to your PayPal account?

In order to add money to your PayPal account, you’ll have plenty of options:⁸

• Direct deposit
• Bank transfer
• Debit card transfer
• Cash reloads
• Third-party apps

Here’s a bit more detail on each method.

Direct deposit

You can set up a direct deposit with PayPal to have your paycheck or government benefits sent straight to your PayPal Balance.

To do this, go to your PayPal app, navigate to Settings → Direct Deposit, and retrieve your account and routing number. Give this information to your employer or benefits provider. Once set up, your funds will automatically arrive in PayPal with no fees.

Bank transfer

Link your bank account to PayPal and move money using a standard transfer. From the Wallet section, select Add money and choose your linked bank. Standard transfers are free but usually take 3–5 business days to clear.

You can also compare the costs and speed of PayPal vs. bank transfers in our guide to see which makes sense for you.

Debit card transfer

If you link an eligible debit card, you can move money into PayPal instantly. Just tap Add money → Debit card transfer and select the card. Instant transfers cost 1.75% of the amount (min $0.25, max $25). Standard transfers to cards are free, though slower.

Cash reloads

You can add cash to your PayPal Balance at major retailers like Walmart, CVS, or Rite Aid. Open the PayPal app, generate a barcode under Add cash at a store, and show it at the register. Hand over your cash and it’ll be added to your balance within minutes.

A service fee of up to $3.95 per load applies.

Third-party apps

PayPal also connects with other services like Venmo (which is also owned by PayPal). Once linked, you can move balances back and forth between accounts.

Is PayPal safe?

PayPal isn’t a bank, which means a standard PayPal Balance is not FDIC-insured. However, PayPal Savings is offered through Synchrony Bank, Member FDIC, so deposits there are insured up to $250,000 per depositor.

To protect your account, PayPal provides two-factor authentication, login alerts, and quick ways to remove linked cards. It also runs automated fraud detection and monitoring in the background.

While this can sometimes delay payments or trigger verification checks, the goal is to keep your account secure.

If you’d like to see how other users rate their experiences, you can also look at PayPal's customer reviews on sites like Trustpilot.

Bottom line

PayPal remains a convenient option for shopping, storing funds, and accessing credit features in the US. Still, fees can be higher for international transfers and some transactions.

For global spending and transparent pricing, it’s worth comparing PayPal with alternatives like Wise to see which suits your needs best.

Wise can help you get a better deal on currency conversion. You can convert over 40 currencies at the standard mid-market exchange rate, and we'll show you the fees upfront so you know exactly how much you're paying.

Learn more about Wise

Sources

1. Chargeflow – Top Line PayPal Statistics for 2025
2. PayPal – Transaction Rates
3. PayPal – Consumer Fees
4. PayPal – List of Countries
5. PayPal – Maximum Amount
6. PayPal – Earn interest with PayPal Savings
7. PayPal – Interest Payment
8. PayPal – How do I add money to my balance from my bank

Sources checked 09/16/2025