The Growing Importance of PayPal in the Freelance World

One of the primary tools of many freelancers is PayPal. Why is the service so popular? For one thing, the fees are low. Additionally, anyone can pay you with it whether they have PayPal or not. And dealing with international taxes and exchange rates is also easy, as currency is converted automatically for you.

As more people choose to work a freelance career, many for the benefit of being able to work anytime, anywhere they have an internet connection, PayPal has taken on a very significant role.

Here are a few of the reasons for the growing importance of PayPal in the freelance world:

●       Accepting Payments

The simplest thing about PayPal, and what started its popularity, is the easy way to accept payments. If a person has your email address, they can send you money from their account or their bank account. If you send them a simple PayPal Me link, clicking on it will take them to a portal where they can pay you.

“PayPal here” is a credit card reader and app that work in tandem to allow freelancers to take payments on the spot from any credit card. The same kind of payment system can be set up on a website, enabling a user to pay electronically, and the seller to receive the funds directly in their PayPal account.

Freelancers need to be able accept any form of payment anywhere. This makes PayPal an obvious and easy choice.

●       Invoicing

Many businesses who are hiring freelancers prefer to pay by invoice. Not a problem. It is easy to create and send invoices with PayPal. Adding business information is easy, and all you need is the recipient’s email.

To the recipient, this is like any other invoice. Any form of debit or credit card payment will do, and they can get a receipt just like they would from any other vendor. This also makes it easy for your records. You can see invoices you have sent, unpaid invoices, and when they are due. You can also send them according to client preferences.

You can even add common items to your inventory, so that you can select them from a drop-down menu or just start typing, and you will be given the option to autocomplete it.

PayPal invoicing is powerful, simple, and the rest of the site allows you to print various reports: an excellent way to track client spending.

●       PayPal Business Debit

If you have a PayPal business account, you can get a debit card that is tied to that account. It means you do not have to wait for balances to transfer to your bank but can use a debit card for purchases wherever MasterCard is accepted.

Because it is a debit card, you can use it even at places like Costco, where credit cards are not accepted. This also enables the cardholder to get cash back at many businesses as well. It also provides access to ATMs, although you will often have to pay a fee to check your balance or withdraw funds..

With some business debit cards, you get cash back for using them. This means you can make money from your purchases if you are careful to avoid fees at ATMs and other places. The PayPal business debit works the same as a debit card from any bank, except that it takes funds from your PayPal balance instead of your checking account.

●       PayPal Working Capital

Another relatively new feature of PayPal business is a PayPal working capital loan. This is similar to a line of credit but differs in that the borrower pays an origination fee up front on the amount they are borrowing, but no interest. The loan is paid back one of two ways: either from a percentage of the borrower’s sales or via minimum payments.

Most freelancers will get enough revenue that they will easily exceed the minimum payment requirement, but even if the borrower does not, the payments are reasonable. The purpose of this loan is to help your business grow in some way by having more capital on hand for a specific purpose.

This can be anything, from purchasing new equipment or hiring and training a new employee, to marketing and product development. The only limit is that you must use the funds for business and not for personal use.

The application process is easy, and if you have a consistent cash flow in your PayPal account, you will usually qualify.

●       PayPal Credit

Another popular service with freelancers is PayPal Credit. This works like any other card: there is a credit limit, your current balance (which you pay interest on), and a minimum payment structure.

Of course, the best idea is to use this card wisely. Do not carry a balance, pay it off monthly to avoid interest, and use it to boost your business credit score. You can also use PayPal credit to check out wherever PayPal is accepted.


PayPal offers a versatile set of tools, not only for accepting payments but also for funding your business and building your credit. Therefore, it is vital to those in the freelance world.

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