Paypal Holdings Inc.

Definition

PayPal Holdings Inc. is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders.

Analogy

Think of PayPal as a digital wallet. Just like how you use your physical wallet to store cash and cards for transactions, PayPal stores your financial information securely and allows you to make or receive payments online without having to re-enter your details each time.

Related terms

Online Money Transfers: The process of sending money from one person or institution to another via the internet.

Electronic Funds Transfer (EFT): A transaction that takes place over a computerized network, either among accounts at the same bank or to different accounts at separate financial institutions.

Digital Wallet: A system that securely stores users' payment information and passwords for numerous payment methods and websites.