How to pay someone with Paypal – with or without an account
Adam Rozsa
PayPal can offer a convenient way to send money to friends and family, and also to make payments for goods and services.
In this article, we’ll show you how to send money to someone with PayPal – with or without an account.
It’s worth noting, however, that PayPal can be an expensive choice if you need to make payments internationally, whether or not you have an account with them.
For international payments, in particular, you could save a lot of money if you choose an alternative provider, such as Wise. More on that later.
With that said, here’s all you need to know about making a payment with PayPal — with or without an active PayPal account.
Using PayPal to pay internationally? There are a few catches.
Through PayPal Friends and Family, PayPal allows users to send and receive payments more or less anywhere in the world whether if you want to pay back a friend or family member; and with PayPal Goods and Services you get paid as a freelance worker, or simply indulge in a little online shopping. However, different services with PayPal come with different costs. It’s well worth understanding the PayPal fee structure before you decide if PayPal is the right way to make your payment.
Some of the costs depend on how you choose to fund the payment.
PayPal International transfer fees
Cost
Paying by balance or linked bank account
This is the cheapest — costing you between 0.3%-2% depending on where the payment is headed.¹
Paying by credit or debit card
If you fund your transfer partially or fully with a card, the fees are much higher — coming in at 3.4%-3.9% of the transaction amount.¹
Currency conversion fee
You’ll be charged a fee of 2.5 to 3%, depending on the situation. The fees are usually removed from the transfer amount as it’s processed.²
Payments for goods or services
These international fees can be even higher — more on that in a moment.
For many customers, when you’re making an international money transfer, it’s most likely better value to use an alternative provider like Wise. There’s just a small transparent fee, and the exchange rate used is the real, mid-market rate. That means there’s no currency conversion fee to worry about, and you’ll be able to see upfront exactly how much cash your recipient will get. What’s more, Wise charges the same fee, whether you’re sending money to a friend, or paying a supplier for a business transaction.
Sending money to a business through PayPal? You’ll want to be informed
As mentioned above, PayPal fees are typically higher if you’re paying for goods and services, and especially so if you’re making an international payment. That means that it’ll cost more to make a payment to a business than it would do to a friend — and it’ll be much more expensive to send money in a foreign currency than it would be to use US dollars.
Independent research found that using an alternative provider such as Wise Business can be up to 19x cheaper for sending business payments compared to paying using PayPal. You can also create and send your invoices by using our downloadable free invoice templates or invoice generator.
In most cases, the costs are charged to the person creating the invoice. This can mean that businesses using PayPal choose to roll up these costs into the invoice amount to make sure they finish up with the right amount in the end.
If this is the case, you might find that both you and the person you’re paying are better off if you choose an alternative way to pay your bill.
How to send money through PayPal using your account
You can make a payment easily using PayPal if you’ve received a money request or invoice. Or you can set up the payment yourself, as long as you have the email address or telephone number of the person you want to pay. Here’s how.
Step 1: Start the payment
If you’ve been emailed an invoice or money request, you’ll simply need to click on the ‘Pay now’ button to get started. Depending on the device you’re using, you might then be asked to log into your PayPal account before progressing.
If you need to start the payment yourself, you’ll need to log into your PayPal account and then click the ‘Send and request’ button.⁵
Step 2: Select whether you’re making a personal or business payment
If you’re structuring the payment yourself, PayPal will ask you to confirm if you’re paying for goods and services, or making a payment to a friend or family member, either in the US or internationally.⁵ Remember, the fees and charges could be different for each service, so make sure you pick the right one for your needs.
Step 3: Enter the details for the recipient
You’re asked to input the email address or phone number of the person you wish to pay.⁵ Make sure you’ve got this information correct before you proceed.
Step 4: Confirm the amount and currency
You’ll then need to confirm the amount you want to pay, and the currency to use. This is done using the drop-down boxes — just click on the currency you want.⁵
Step 5: Hit confirm, and choose a funding source
Confirm that the payment has been entered correctly, and choose how you wish to pay. You can usually choose between a few different funding sources at this stage — using PayPal balance, a linked bank account, or a credit or debit card.⁵
There are pros and cons to each payment option. So it’s a good idea to know what you’re getting into.
PayPal payment option
Pros
Cons
PayPal balance
Fully funded domestic payments: fee-free⁶
Funding domestic payment with balance and linked bank account: free⁶
International payments carry fees⁶
Payments in currencies other than USD carry fees
Partially funding with credit/debit card also carries fees⁶
Fully funded domestic payments: fee-free⁶
Funding domestic payment with balance and linked bank account: free⁶
International payments carry fees⁶
Payments in currencies other than USD carry fees
Partially funding with credit/debit card also carries fees⁶
Debit/credit card
Possible to make a payment on PayPal without an account if you pay with credit/debit card
Paying with card brings much higher fees than paying with balance or linked bank account
International payments cost even more
Step 6: Review the payment and you’re done
Once you’ve added your funding source, you’re more or less done. Click the button to confirm the payment, and you’ll receive an emailed receipt showing the payment has been processed.
How to send money through PayPal without an account
To make a payment through PayPal without opening an account yourself, you’ll have to have the recipient send you an invoice or money request. This means you’ll receive an email with either a detailed invoice — usually if you’re paying a business — or a simple note explaining what the money is needed for.
Embedded in the email will be a ‘Pay now’ button, which is all you need to make the payment without opening a PayPal account yourself.
Step 1: Click on ‘Pay now’ in the email or invoice you’ve received
Assuming you’ve received the email detailing the payment, simply click on the ‘Pay now’ button.⁴ If you can’t see the email, it’s worth checking your trash or spam folders, in case it has been sent there.
Step 2: Enter your credit or debit card details
You’ll now be given the option to open a PayPal account yourself and pay that way. However, if you don’t want to do that, you just select the credit or debit card option and enter the details for the card you wish to use.⁴
It’s worth remembering, however, that payments through PayPal using a credit or debit card are much more expensive than payments made using a PayPal account with balance or a linked bank account.¹ You can look at the table in the previous section to get more of an idea of the cost differences.
Step 3: Confirm the payment
Here you’ll get a final chance to review the payment and make sure everything’s in order. If it’s all as you want it, just click confirm and the payment will be processed. You’ll receive an emailed receipt of your payment for your records.⁴
If you need to make a payment — whether to pay back a friend who bought you dinner, or to cover a supplier invoice for your small business — you have choices. PayPal can be convenient for some transaction types, but there are fees to take into consideration.
And if you’re making an international payment, the costs can be pretty steep. Before you make your decision, it could save you money to check all the options available to you to make sure you’re not paying too much for your particular transaction.
You could consider using Wise as an alternative, and if you need to make international payment regularly, opening a multi-currency account for free could also be a good option for you. You can also get the Wise multi-currency debit card, which you can use to pay for goods and services all over the world.
See how much you can save with Wise:
The true cost of sending USD to GBP
All sources checked on 16 December 2021
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
Send money in a few seconds.
You can send money to almost anyone with an email address, without sharing your financial information with the recipients. Use their email address and they’ll get the money in a simple, faster and more secure way.
Enter the seller’s email address.
Enter an amount and send your money more securely.
Track your transactions in your account activity.
Ways to pay.
Add a card to your PayPal account and simply login with your email address whenever you’re sending money online.
Anytime, anywhere.
You can send money to almost anyone, in just a few easy clicks. All they need is an email address.
“With PayPal, money is sent in a few moments. It’s nice to pay this way.”
Keeping you safer.
Sending payments with PayPal is safer than carrying cash or sharing your financial information with the seller. Every eligible transaction is protected by advanced encryption and 24/7 fraud monitoring.
No hidden costs, no surprises.
When you send money with PayPal there are no hidden costs or processing fees. Currency conversion fees may apply. In addition, your card issuer may charge you separately.
Your money is on its way in a few clicks.
PayPal Pte. Ltd. (“3PL”) has applied for a license under the Singapore Payment Services Act (“PS Act”) with the Monetary Authority of Singapore. During this statutory transitional period, 3PL is operating under an exemption from holding a license and is allowed to continue to provide specific payment services.
Make a Payment in a few seconds.
You can send payments to almost anyone in exchange for goods and services, without sharing your financial information with the sellers. Use their email address and they’ll get the payment in a simple, faster and more secure way.
Enter the seller’s email address.
Enter an amount and make your payment more securely.
Track your transactions in your account activity.
Ways to pay.
Add a card to your PayPal account and simply login with your email address whenever you’re buying something online.
Anytime, anywhere.
You can send payments to almost anyone in exchange for goods and services, in just a few easy clicks. All they need is an email address.
“With PayPal, payments are sent in a few moments. It’s nice to pay this way.”
Keeping you safer.
Sending payments with PayPal is safer than carrying cash or sharing your financial information with the seller. Every eligible transaction is protected by advanced encryption and 24/7 fraud monitoring.
Send money abroad with ease.
With PayPal, it’s easy to send money to friends and family abroad. And thanks to our new Xoom service, you can send money directly to international bank accounts, cash pick up locations, and more.
No hidden costs, no surprises.
When you make a payment with PayPal there are no hidden costs or processing fees. Currency conversion fees may apply. In addition, your card issuer may charge you separately.
Your payment is on its way in a few clicks.
This content is for general information purposes only and does not form financial or professional advice.
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Send money to friends and family.
Send money to almost anyone. If they don’t have a PayPal account, we’ll send them a link to sign up so they can access the money. Stop sharing sensitive financial information. PayPal’s the safer way.
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Send money to almost anyone. If they don’t have a PayPal account, we’ll send them a link to sign up so they can access the money. Stop sharing sensitive financial information. PayPal’s the safer way.
Don’t have a PayPal account? Sign up for free
How it works.
Log in to your account. Enter your friend’s email or mobile number and an amount to send.
Choose the bank account or card to use, and send your money securely.
They’ll receive the money into their PayPal account or a link to sign up to access it.
A safer way to send and receive money.
When you tell someone your BSB and account number, you’re trusting that they won’t draw from your bank account, or write the numbers down where someone else might find them. When you send money with PayPal, all you need is their email address or mobile number – details you probably already have. Plus, you can rely on PayPal’s security measures to keep your financial information safer.
Send money for free.
When you send money to friends and family within Australia from your linked bank account or PayPal balance, it’s free for you and your recipient. You can also send money from your credit or debit card, or to someone overseas, but that’ll incur a small fee.
Send money on your mobile.
The new PayPal app makes it even faster and easier to send money on your mobile to almost anyone around the world.
Join more than 7 million happy PayPal Australian shoppers.
The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds Australian Financial Services Licence number 304962. Any information provided is general only and does not take into account your objectives, financial situation or needs. Please read and consider the Combined Financial Services Guide and Product Disclosure Statement before acquiring or using the service. PayPal credit services are provided by PayPal Credit Pty Limited (ACN 600 629 258).
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Send payments securely.
Now you can send local or international payments from anywhere you happen to be, at home or on the go. All you need is the recipient’s email address or mobile number and the money will go to their account. If they’re new to PayPal, they can create an account quickly for free.
Sign up for an account to start sending payments
How to send an online payment?
Enter the recipient’s email address or mobile number, and the amount and currency to send.
Choose your preferred way to pay and send it securely.
Track your spending easily. You’ll be notified whenever you make a transaction.
It’s free to send payments.
You don’t need to pay a transaction fee when you send payments with PayPal. The recipient covers that. If you send a payment overseas in a different currency, a small conversion fee applies.
It’s a safer way to pay.
We keep your financial information securely encrypted, so you can pay online with confidence. Plus, your eligible transactions are safeguarded with Buyer Protection.
Every payment is rewarding.
Link your credit or debit card once and continue earning reward points the same way you do when you shop.
“PayPal One Touch TM is perfect to me because I don’t have to enter my password over and over again. It safely remembers my details and makes checkout a lot faster.”
Send payments from your mobile.
Download the PayPal app and you can send payments anytime, anywhere, and keep track of all your transactions in one single place.
Send payments anywhere, to anyone.
PayPal Pte. Ltd. (“3PL”) has applied for a license under the Singapore Payment Services Act (“PS Act”) with the Monetary Authority of Singapore. During this statutory transitional period, 3PL is operating under an exemption from holding a license and is allowed to continue to provide specific payment services.
When you visit or interact with our sites, services, applications, tools or messaging, we or our authorised service providers may use cookies, web beacons, and other similar technologies for storing information to help provide you with a better, faster and safer experience and for advertising purposes. Learn more here.
