Difference Between Similar Terms and Objects

Difference Between PayPal and Credit card

PayPal vs Credit card

Paypal and credit cards are electronic money transactions. They have become so convenient to use that there is no need for checks or money orders. Let us look at the two.

Paypal is a method of sending and receiving money on the Internet. Instead of sending cheques and money orders for shopping, you can use Paypal. In case you want to recharge your Paypal account, you can easily do it using your credit card or bank account. While using Paypal, you can either transfer the money directly or use a Paypal cheque. A minor fee is levied for payments made or received. Though Paypal is operational in most countries and applicable to about 19 currencies, this paperless transaction has yet to reach some countries.

A Credit Card is just a plastic card that is used instead of ‘real’ money. Just like Paypal, you can do shopping and also receive payments using credit cards. Unlike Paypal however, there is a credit limit, which means that you are borrowing money from the bank. If you have a credit card, there is no need to worry about your actual bank balance as you can buy anything by borrowing money from the bank. In the case of Paypal, there is no borrowing as you can make the transactions only if you have money in your Paypal account.

When using a credit card, there is a due date by which you have to make the payments. If the amount is remitted within the period, there is no interest charged. However if payments are late,  you have to pay interest on the debt.

Paypal originated in 2000 after Confinity and X.com merged to develop their email payments. In 2002, Paypal was popularized with more of the eBay customers using Paypal for shopping.
The history of credit cards goes back to 1890, when certain European merchants gave their customers credit card as a  method for mproving the irbusiness. Credit cards become so popular in the 1940s and New York businessman Frank McNamara is credited with popularizing it.


  1. Unlike the paypal, there is a limit on credit cards for the money thaanuld be borrowed from the bank.
  2. If you have a credit card, there is need ng to worry about the balance of your bank account; you can buy anything by borrowing money from the bank. In the case Pf paypal, there is no borrowing as you can make the transactions only if you have money yourtPe paypal account.

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