How to Use PayPal Goods and Services in 5 Steps (with Photos)

How to Use PayPal Goods and Services in 5 Steps (with Photos)

With the goods and services option, PayPal has revolutionized sending and receiving money worldwide. The giant online payment platform allows users to transact using goods and services and friends and family methods. These features have made the platform incredibly popular with online buyers and sellers due to its convenience and safety.

The friends and family method is designed for individuals familiar with each other, such as friends or family members. When using this method, you only send money to someone you know. PayPal goods and services allow people to pay for online items they need from strangers or businesses.

Let’s look at how to use PayPal goods and services method and make your online transactions as smooth as possible. 

Understanding the PayPal Goods and Services Method

Before covering the goods and service option, let us first understand what we mean by goods and services.

  • Goods are tangible, physical products that we acquire from sellers, like clothes and jewelry.
  • Services are the assistance, advice, or intangible actions you receive from someone, including but not limited to courses, coaching, or consulting.

Friends and family members use personal accounts. PayPal allows us to pay for goods and services to online sellers. Most online sellers of goods and services have PayPal business accounts. 

Using the friends and family payment method, PayPal does not allow its users to pay for goods and services acquired from a business account. The goods and services method is for those paying for an item or service they acquire from an online business of some sort.

Once you have the PayPal email address of the online seller, follow these steps on how to use PayPal goods and services method.

Steps to Use PayPal Goods and Services

Paying using goods and services differs slightly from the friends and family option. Only a small step separates the two.

Follow the below steps when transacting with PayPal goods and services.

Step 1:Log in to Your PayPal Account

Go to the official PayPal website here.

Once the official PayPal website homepage opens, click Log In at the top right corner if you have an account. If you don’t, Sign Up by clicking that button and setting up your account. Fill in your credentials and sign in.

Once entered in, you will be taken to the dashboard of your PayPal account.

paypal goods and services
Click the Log In option.


paypal goods and services
Then, fill in your credentials.


Step 2: Click the Send and Request Button at the Top of the Dashboard

At the top of the dashboard, you will notice the primary tabs written horizontally. These main tabs include:

  • Dashboard
  • Send and Request
  • Wallet
  • Activity
  • Help

Click on the Send and Request tab.

paypal goods and services
Click on Send and Request.


Step 3: Enter the Recipient’s PayPal Email, Username, or Mobile Number

On the dialog box that appears, fill in the username, email, or mobile number of the business you want to send funds to buy a good or service. As you enter any of these details, PayPal will scan its database to see whether there is a match. An incorrect entry will be detected immediately. 

Once you enter the correct details, click the Next button at the bottom of the page.

paypal goods and services
Enter in the recipient’s username, email, or mobile number.


Step 4: Enter the Amount You Intend to Send to the Recipient

After entering the recipient’s details in the PayPal system, you will be prompted to enter the amount you wish to send. So, fill in the amount you want to send in the dialog box. The default currency is usually United States Dollars (USD).

The next step is to state the reason for the payment. You will click on the dialog box labeled  What’s this payment for? Here, you will differentiate between sending to friends and family or paying for goods and services. Mention that you are paying for goods and services

The dialog button named Continue will turn blue after filling in your reasons. Now, click on it to go to the next step.

After the step above, PayPal will combine these details and display another dialog box. In this new dialog box, PayPal mentions its purchase protection feature.

The feature states that you will get a full refund if your items get damaged or lost. This purchase protection applies because you are paying for goods and services.

paypal goods and services
Add in the amount you want to send.


Step 5: Submit the Request to Pay for Goods and Services.

After pressing the Send Payments Now button and completing the details and verification, you have successfully completed the steps to send a payment via PayPal goods and services. This ensures that your online transaction is secure and swift.

Final Thoughts

PayPal is acclaimed all around the world, with many confidently sending and receiving money using PayPal everyday. The company understands that it needs to safeguard people’s transactions by establishing two payment categories. The friends and family option only allows you to send money to close associates and relatives, while goods and services is a convenient and secure way to send or receive payments. It’s easy to use and fast with just a few steps involved. Be sure to review the payment information carefully before you send money to ensure that everything is accurate.

PayPal in the News

On May 17, 2023, PayPal announced that it was launching “Pay with PayPal in Microsoft Teams,” a new feature that allows users to request payments through Microsoft teams. The payments are processed through PayPal and the funds are deposited into the recipient’s PayPal account.

PayPal announced on June 21, 203 that it was expanding its Tap to Pay feature to Venmo and PayPal Zettle businesses in the U.S. Tap to Pay is a contactless payment technology that allows customers to pay for goods and services with a tap of their credit or debit card.

On July 1, 2023, PayPal announced that the company would be offering crypto transfers to external wallets and exchanges. This means that users will be able to move their cryptocurrencies out of their PayPal accounts and into other wallets or exchanges. This feature, which is currently in beta testing, is expected to roll out to all users in the coming months.

Frequently Asked Questions

Do you need a PayPal account to transact using PayPal goods and services?

To use this method, you must create and verify your PayPal email account because PayPal’s protection policy only applies to users who have verified their PayPal account.




What is the difference between sending money to friends and family and paying for goods and services on PayPal?

PayPal does not offer buyer protection to someone sending money to their friends and family. PayPal only protects you when sending money for goods and services. However, the receiver will not pay a fee to receive the funds. In transactions involving goods and services, the transaction is protected by PayPal’s buyer protection and there are also charges for the transaction.

What is the cost of using PayPal's goods and services?

PayPal charges a certain fee to use its goods and services transaction method. The platform will charge users a fee of 2.99%. This is only for the regional transaction. For international money transactions, PayPal will add a 1.5% fee.



Is it necessary to use goods and services to pay for goods bought in the marketplace?

Using the goods and services method to pay sellers on marketplaces is a must. Earlier, PayPal allowed people to use the friends and family feature to pay for marketplace transactions.

However, this was rescinded to protect buyers and sellers under PayPal’s policy of Purchase Protection. As of now, marketplace transactions will only be allowed for business accounts. 

What are the advantages of using PayPal's goods and services?

The goods and services feature of PayPal benefits online buyers and sellers who need to send and safely receive money. It comes with significant advantages, including that the transaction is safeguarded under PayPal’s Purchase Protection. Online buyers and sellers can be confident that PayPal will promptly address any issues and that their money will be safe when using this method.

Will PayPal's Purchase Protection safeguard me from online scammers?

PayPal does its best to help protect customers from fraudulent transactions by allowing them to dispute the charge if they feel it wasn’t legitimate. If PayPal finds this in favor of the customer, the disputed amount will be returned to their account.

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