Should I Use a Paypal Business or Personal Account?

Published: | By Gaukhar Murzagaliyeva

Nearly everyone who buys or sells online has a PayPal account. Most PayPal users have a standard PayPal Personal account and use it to pay for online purchases or transfer funds to friends and family.

PayPal is also useful for business owners who deal with a great number of transactions for ecommerce products. So which one is best? PayPal Business or Personal?While small-time entrepreneurs can get away with using PayPal Personal to receive payments, bigger businesses greatly benefit from a PayPal Business account.

It allows payment integration (like with our PayPal Button Generator), flexible payment options, finance management, and more.

So what exactly are the differences between the two types of PayPal accounts—and which one should you choose for your business?

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The Difference Between PayPal Personal and Business Accounts


  • PayPal Personal

PayPal Personal is the account most people have on the platform. It’s what they use for personal payments, sending and receiving money between family and friends, and for online shopping and other online transactions.

With PayPal Personal, you can link your bank account for easy transfers and connect your credit or debit cards. This way, it can automatically fill in your details when you buy from shops that support PayPal payments.

Small business owners, freelancers, or casual sellers (like small-batch entrepreneurs or artists) can also use PayPal Personal to accept payments from customers or clients.

However, since you’d be using a personal account that includes your personal details, this could have privacy implications.

Additionally, using PayPal Personal for business limits the payment options you can offer and incurs a fee for credit and debit card transactions, so it's best you apply for a business credit card that gives you the most flexibility.

  • PayPal Business

PayPal Business is a step up from PayPal personal, designed to cater to small and medium businesses that process multiple payments. If you’re wondering, “does PayPal business cost money?” know that it does.

Transactions incur a small fee, and if you want full access to the platform’s wealth of features, you’ll have to upgrade to a paid plan.

That said, if you’re gunning for the most seamless transaction experience for both you and your customers, the price is well worth it.

screenshot of paypal business account homepage setupSource: Paypal

PayPal Business offers the same services as PayPal Personal accounts, but it’s packed with much more powerful features, including:

Payment Integration

Businesses can integrate the PayPal payment system into their e-commerce shops. With a designated PayPal button, customers can complete transactions, whether via PayPal, debit, or credit card, in just a few clicks.

If the business also has a brick-and-mortar shop, it can integrate the same platform into its point-of-sale (POS) system.

Flexible Payment Options

PayPal is available in over 200 markets online, and with a PayPal Business account, merchants can accept payments in a wide variety of international currencies.

Customers can use PayPal to pay via a number of payment options, even if they don’t have a PayPal account. They can also pay for several shipments in a single transaction.

Finance Management

PayPal Business is more than just a bulked-up payment processing method.

It also comes with a suite of finance management features, helping business owners to easily keep track of payments and perform basic bookkeeping, oversee inventory, view marketing insights, and more.

If the included tools aren’t enough for you, feel free to use a third-party invoice app to request payment for your product/ services and monitor incoming sums.

Account Sharing

Up to 200 people can access a single PayPal Business account. This is helpful for large businesses that require multiple people to monitor transactions at the same time.

Account owners can provide unique logins and levels of access to relevant employees for an added layer of security.

Subscription Services

PayPal Business allows businesses to set up subscription services. This enables customers to conveniently pay for services in recurring bills instead of all in one go. 

paypal homescreen on mobile deviceSource: Paypal


Which PayPal Account is Best For Me?

Choosing between PayPal Personal and PayPal Business depends on the size of your business and its specific needs.

For small businesses, freelancers, and casual sellers, the features of PayPal Personal may suffice for receiving payments.

But for businesses that transact with many customers in several currencies, upgrading to a PayPal Business account allows for more seamless transactions and makes finance management much simpler.

With a PayPal payment button from POWR integrated into your site, you make the checkout process more effortless with multiple payment options.

This can give your customers a better shopping experience, leading to more completed transactions and helping you generate more sales.

The additional features that come with PayPal Business also make managing orders, numbers, and insights much easier, allowing you to focus on the bigger picture and scaling up your ecommerce business.

Regardless of which PayPal account you choose, just be mindful when making PayPal payments, as identity theft and fraudulent debt are often tied to such transactions.

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