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Popmoney vs PayPal

Different Payment Options


Which service should you use when you want to pay somebody -- Popmoney or PayPal? It may seem like the two are identical, but there are a few differences. Learn what makes each one unique and why you might care.

Gone are the days when you have to pay somebody with cash or a check. The benefits are numerous, including:

  • No need to write checks and reorder more when you run out
  • No dealing with exact change and breaking large bills
  • Easy to prove to forgetful types that you really did pay
However, there are several choices out there. Two popular options are Popmoney and PayPal. Depending on what you need, there may be little difference, but there are a few things to consider.

Another option for sending money is Square Cash, which we describe elsewhere on the site.

Fees at Popmoney vs PayPal

Fees are generally modest using Popmoney and PayPal, and they’re probably worth the benefits. Just make sure you know what the fees are and choose your payment method accordingly.

  • PayPal may be free for personal payments as long as you draw from your bank account (as opposed to funding with a credit card)
  • PayPal should be free for business payments (when you’re the customer)
  • PayPal costs money when you’re getting paid as a business
  • Popmoney is generally free when receiving money
  • Your bank may charge a small fee for sending money via Popmoney ($1 or so per payment)
  • Sending money from your account at Popmoney.com costs $0.95


Just about anybody with a bank account can use PayPal or Popmoney. For a while, sending money with Popmoney was only available to customers at certain banks. Now, anybody can sign up and create a profile at Popmoney (using a payment account at any bank). Checking, money market, and direct deposit accounts will all work with Popmoney, whether sending or receiving money; savings accounts do not work. You can also send money from a debit card account.

Note that if your bank works with Popmoney, life is a little easier -- you don’t have to set up a profile or provide bank information at Popmoney.com; it’s already done for you by your bank.

Funding Methods

Popmoney will only pull funds from your bank account (checking, savings, and money market accounts). PayPal, on the other hand, will also link to credit cards and debit cards.

Popmoney Reviews

Want to know what others think about Popmoney's service? We've collected a number of reviews from customers, and you can also add your own to the list.

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