How to Send Money through PayPal?

How to Send Money through PayPal?

PayPal was initially established by Max Levchin, Peter Thiel and Luke Nosek in 1998 as Confinity, a company that developed security software for handheld devices. (Surprise, surprise!) That business model didn’t take off quite as expected. So, the founders promptly ditched it in favor of the upcoming electronic payments system and launched the initial version of the PayPal digital wallet in 1999. The rest as they say is history.

Today, PayPal is one of the largest online payment processors in the world. Whether it is shopping online from the comfort of your home, getting paid for your freelancing work or sending money to your family or a friend, your digital ‘Pal’ caters to almost all your money transfer needs.

With PayPal, you can send money to anyone who has a valid email address or mobile number and it’s as easy as saying “One, Two, Three”. Let’s see how.

Step 1: Login to your PayPal Account. (Duh-uh!)

Log in to PayPal using your email address or mobile number. Don’t have a PayPal account? No problem, we’ve got you covered. Click here to open your account in a few simple steps. Click here if you wish to send money without opening a PayPal account. (Yes, it is possible!)

Step 2: Click Send

If you are using a laptop or desktop PC, look for the Send button on the top right corner of your screen. If you are using a mobile phone, you will find it at the bottom left corner.

Step 3: Enter the recipient's email address, mobile number or name and click Next

You need to have the valid email address or mobile number of the person to whom you wish to send money. PayPal validates the email address before proceeding. You can also turn on ‘PayPal Search’ or sync your phone contacts for easy searching.

Step 4: Enter the amount and select your desired currency

Type the amount you wish to send. Then select the currency in which you want to send the money from the drop-down list. You can include a brief note to the recipient if you like. If the option is available, select: Sending to a friend or Paying for an item or service.

Step 5: Review your funding source

You can send money via PayPal Balance or your linked bank account or debit/credit card. Domestic payments are generally free. International payments are chargeable at different rates depending on your funding source. A currency conversion fee is also applicable for payments in other currencies.

Choose your shipping address from the drop-down list. The addresses from your linked bank accounts and debit/credit cards will be displayed in the list.

Step 6: Click Send Payment Now

Review all the details you have entered, click Send Payment Now and Voila! your payment is done.

The recipient will receive an email message about the transferred money. To receive the money, they need to login to their PayPal account or create a new account if they don’t have one. (You do need to have a PayPal account to receive money. It’s mandatory.)

How to Send Money via PayPal without an account?

Yes, you can make payments with PayPal without opening an account. All you need is an email from the recipient (the person to whom you wish to pay), containing an invoice or money request.

The recipient will have to send you an email with either a detailed invoice (if you’re paying a business) or a simple note (if you're sending money to a family member or friend) explaining what the money is needed for. A Pay Now button will be embedded in the email. Clicking it will redirect you to the PayPal page from where you can make the payment by using your debit or credit card. (Payment via bank account is not possible in this process.)

Of course, the recipient will need to have their own PayPal account to generate the invoice/request.


From being a simple digital wallet to operating a worldwide online payments system, PayPal sure has come a long way. So much so, the name PayPal has become synonymous with online transfers in the same way that Xerox is to photocopying or Colgate is to toothpaste. What’s more is that PayPal has spawned a whole new generation of peer-to-peer money transfer solutions like Payoneer, TransferWise, Stripe and many others, offering similar and at times better digital payments solutions. Happy PayPal-ing!

See also: How to Receive Money on PayPal?