Have you just heard that it is not possible to send money from Zelle to PayPal and you are ready to believe that? Wrong! Although the process can not be carried out directly, you can conveniently send money from Zelle to PayPal by indirect methods which may differ when compared to sending money from Zelle to Cash App, Venmo, or internationally .
- You can send money from Zelle to PayPal by first transferring it to a linked bank account and then moving funds from bank to PayPal.
- In comparison, Zelle money transfers work faster than PayPal.
- Nonetheless, PayPal has more security features and offers better buyers/sellers protection.
…and Much More!
Can I Send Money From Zelle To PayPal?
If you are a Zelle user then you would have a major advantage of being able to send money to any bank in the US. You can utilize this feature to send funds indirectly to PayPal as well.
Lets talk about how to use the free and fast service of Zelle and the business model it uses to send funds to your linked bank account and then to PayPal account where you need them.
You might be interested in reading: Zelle Canada.
Step 1: Link Your Zelle Account To Your Bank
Majority of the banks in the US have started accepting Zelle online banking services and therefore you can link this app to your bank without any hassle.
- If you already have created an account and you are opening a new bank account then it is best to confirm from their staff whether the bank supports Zelle or not.
You can send money from Zelle to PayPal as long as you have a bank account that support Zelle money transfer services. If not, you would have to look for a different bank account or forget about sending funds to PayPal.
The first thing is to connect Zelle to your bank account. This is easy and can help you streamline all your future bank transfers. Moreover, keep in mind that for any kind of transaction, you have to consider Zelle transfer limits.
Step 2: Connect Your PayPal To The Same Bank Account
The next step is to connect PayPal to the same bank account with which you had previously linked your Zelle account. This is necessary because, as we mentioned before, PayPal does not accept Zelle transfers and therefore the money exchange can not take place directly.
To add a bank to PayPal account you first have to visit its My Money section. Then click on the Account menu and tap on Update. Here another option of Bank Account would show. Enter the details of the account such as the account number and routing number and then confirm the connection.
After this you can easily send money from one app to another using your bank account.
Step 3: Use The Bank as A Middle Party To Exchange Funds
Now that you have linked both the apps to same account, it is time to transfer the funds between them.
- You can first use Zelle to send the money to your bank and then transfer it to PayPal account. Hopefully, the funds will be made available within a short period of time.
When you have to pay for a service through PayPal such as at a gas station, hotel, etc, there are multiple ways of doing so. Most people like to utilize the funds appearing as PayPal balance while others prefer using the linked bank account or debit card.
You can choose to do either as long as you have sent money from Zelle to the bank account.
Method To Send Money From Your Zelle To Someone Else’s PayPal Account
In the example that we talked about above, our aim was to show you how to use your own Zelle account to send money to your own PayPal account. This leaves a room to discuss whether the same is possible with someone else’s PayPal account or not.
Well, the answer to this question is that money transfer from Zelle to someone else’s PayPal account is only possible if you have a PayPal account of your own. Moreover, if you don’t currently then you can sign-up immediate and for FREE.
You would have to visit PayPal.com for this task and click on Sign-up. This would open a new page where you need to choose whether you want a personal account or a business account.
Creating PayPal account requires you to enter your email ID which must be valid and then choose a password. Furthermore, information such as name, phone number, and contact address would also be required.
You might be interested in reading: How to Borrow Money From PayPal.
Zelle vs PayPal – In a Nutshell
When choosing a money transfer services, newbies are often confused about which one to go for. Similar comparisons have been done in case of Zelle and PayPal as well although it is quite difficult to draw a final verdict.
Zelle takes extra points for being quick with money transfers. Moreover, it can be integrated with large large of banks in the US or even accounts for bad credit, making it an ideal choice for those who frequently need to share funds.
PayPal, however, is a safer platform with all layers of security set in place. Compared to this, Zelle does not have a buyer protection feature which means you can not return a product if it does not match the description upon delivery. PayPal also supports refund requests made within 6 months.
Therefore, the final choice is dependent on what exactly you are looking for. However, to make things easier for you, we have discussed some of the main comparative points below.
The Process of Money Transfer With Zelle Is Easy and Straightforward
Zelle is meant for quick money transfer. The app takes out funds from your bank and send them to the recipients bank with no obstacle in between.
On the other hand, PayPal users needs to share their PayPal balance instead. This means that the transfer does not take place directly from the bank instead it proceed using either the money in your app or linked debit card/bank accounts.
Moreover, PayPal charges a fee when using credit card or debit card before it makes the money available as the recipient’s PayPal balance.
You might be interested in reading: How To Transfer Money From Bank to PayPal.
Zelle Transfers Are Instant
Obviously, Zelle again takes the lead here by allowing instant sharing of funds. With PayPal you have to look out for many additional steps. Especially if you wish to transfer them to a bank account then you have to separately file this request.
Any transfer made in the evening would arrive on the next day. If there is a weekend or a holiday, you can expect further delays. However, the option of instant transfer is open with $0.25 fee per request. In this way, you can send the money within 30 minutes.
PayPal Offers Better Buyer and Seller Protection
There is no doubt that PayPal is a safer platform that offers complete protection for the transactions made online. Although you can not utilize these for sharing funds with friends and family just like Zelle, it is quite helpful when making transactions with merchants.
PayPal is further guarded by username and password that is compulsory for login. Moreover, it can be protected by SMS verification. Zelle can easily by logged in by just providing the phone number. As you can see, there is a major different on the level of security that they provide.
PayPal Has Higher Additional Fees
Zelle considerably has lower fees. PayPal, on the other hand, charges $0.25 for instant transfers. For those who wish to make credit card transactions need to pay 2.9% and $0.30 per transfer. If you are using PayPal to send money to a bank account then that would not incur any additional costs.
International transactions carry fees as well. However these can vary so you have to check with the service and confirm the rate for the currency under use.
The Bottom Line
It looks like sending money from Zelle to PayPal is not a big deal after all. You simply need to own a bank account that is linked to the both apps. Moreover, you can use the same method to send money from PayPal to Zelle as well.
Hopefully, this article has summed up everything that you needed to know about swift and easy money transfer between Zelle and PayPal. If there are any queries left, drop them in the comment section below so can get back to you as soon as possible.
Frequently Asked Questions
Can you receive money on Zelle without having a bank account?
Yes. It is possible to send and receive money on Zelle without an account. You only need to download the app and create an account. Then you can transfer money between any account.
Who owns Zelle service?
Zelle is owned by Early Warning Services. The financial service is basically a US-based digital payment platform that works with Bank of America, Capital One, Chase, PNC Bank, Wells Fargo, etc.
Is PayPal safer than Zelle?
There is no doubt that PayPal is a safer platform that offers complete protection for the transactions made online. Although you can not utilize these for sharing funds with friends and family just like Zelle, it is quite helpful when making transactions with merchants.
PayPal is further guarded by username and password that is compulsory for login. Moreover, it can be protected by SMS verification.
Does Zelle take fee for money transfer?
No. Zelle does not charge any fee for sending or receiving money. There are no additional fees when unless you want to send over the money instantly.
Jamie Johnson is very enthusiastic Kansas City – based freelance writer, and her core expertise are finance and insurance. She has been endorsed on several personal finance, insurance & business website to share her thoughts. Her publications can be found on famous sites like Bankrate, The Balance, Business Insider, Chamber of Commerce and many others.
From many years, she served more than 10,000 hours of research and writing to more than 2000 articles related to personal finance, credit building, mortgages, and personal and student loans.
