PayPal's Service “Payments without a PayPal account” is provided to on-line merchants and other PayPal account holders (who would like to receive money in their PayPal account) by PayPal Pte. Ltd. (“PayPal”) which is licensed by the Monetary Authority of Singapore as a Major Payment Institution under the Payment Services Act 2019.
This service allows on-line merchants to sell goods or services to persons who do not hold a PayPal account (and therefore are not PayPal's customers) (“third party” or “you”). It involves PayPal crediting the on-line merchant' PayPal's account in the equivalent amount of the payment for goods or services being purchased by the third party, when PayPal receives funds from the third party (through its credit or debit card issuer).
Similarly, in certain jurisdictions, the service allows other PayPal account holders (such as for example holders of personal accounts) to request a payment from a third party. In this case, the third party will pay the requested amount to PayPal and PayPal will credit the account holder’s PayPal account in the equivalent amount.
In case the merchant or other account holder is obliged to pay PayPal fees for this payment, the fees will be automatically deducted.
PayPal will not open a PayPal account for you when you pay as a third party and we credit merchants or other PayPal account holders, as detailed above. PayPal will keep the information you provide in accordance with our Privacy Policy to (1) allow payments to be made in this way in the future, (2) enable us to monitor the use of PayPal’s service “Payments without a PayPal account” for risk management and compliance purposes and (3) make it easier for you to open a PayPal account in the future.
PayPal will monitor the number and amount of transactions made by you to merchants or other PayPal account holders using the Payments without a PayPal account service. If these transactions are regular or exceed certain thresholds, we may require you to open a PayPal account with us and become a PayPal customer. At this point, you will need to enter into our standard user agreement to govern your newly-created relationship with us, as our customer.
You should note that PayPal’s service “Payments without a PayPal account” does not entitle you to the benefits of having a PayPal account. You will not be eligible to take advantage of our Buyer Protection Policy or any other benefits which we offer under the user agreement to our customers. You may have additional rights through your agreement with your credit or debit card issuer.