How does PayPal Make Money?

Hi,
If you know what is PayPal and how does it work, good for you. However, if you don't, the fundamentals are pretty easy. If you know how a local bank in your area earns money, you will easily understand how does PayPal work. However, if you don't know even that (this is bad!), then allow me to explain. Akin to any other bank, PayPal earns from managing the funds their users receive. Now, a user won't sign up for fun on PayPal, would he? He would definitely entertain some transactions in to and from his account. Hence, PayPal earns interest against the money that the users have put into their account. Even with an interest rate of as low as 1.5% annually, PayPal manages to earn wonders even from the money that's not been touched by the users(thanks to its popularity among world masses!). What's more, it charges you a sum every time you receive money, doesn't it? PayPal fees for receiving money varies for different types of PayPal accounts.

So, this is all about PayPal, and a slight idea of PayPal fees for receiving money as well as sending it to a third party. PayPal acts as an effective mediator for online money transactions, and is, undoubtedly, a supreme power. The best thing about PayPal is its name. It has gained eminence across the globe to such an extent, that now you can put money into your account from anywhere, and forget it. PayPal will take care of the rest!