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How to use PayPal’s Friends and Family feature

Uncover PayPal Friends and Family: how it works, fees, and more.

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PayPal enjoys immense popularity in the realm of online shopping. However, were you aware that it can also serve as a means for conducting personal money transfers? If your experience with this online payment platform is relatively recent, keep reading to learn more.

It’s safe to say that most people using online payment methods are familiar with PayPal. Known for its swift and seamless transactions, the nature of PayPal is appreciated by millions. Taking things one step further, the payment platform has launched a Friends and Family function to make payments even more simple.

In this guide we’re divulging the details of the new function, exploring how it works and the fees they charge. After all, who doesn’t want to know a more convenient and secure way to send money to your loved ones?

However, keep in mind that PayPal isn't the sole option for online shopping and sending digital payments.

Check out at the Tap account and Tap card – they offer a convenient blend of minimal fees, advantageous exchange rates, and ease of use. This solution is perfectly tailored for handling international payments and has the potential to significantly reduce your expenses.

How does the PayPal Friends and Family feature work?

The PayPal Friends and Family feature works by enabling users to send money to their friends and family swiftly. 

According to the website, users need to have a PayPal account and select the "Send Money" option when wanting to make use of the function. Then, choose the "Sending to a friend " option, entering the recipient's email or phone number, and the payment amount. 

Once confirmed, the funds are transferred securely, and the recipient can receive the money in their PayPal account. It's a straightforward and convenient way to share money with loved ones, making transactions fee-free (if conducted with GBP) and creating a closer connection within your inner circle.

Note that the transactions are only fee-free if they are done without a currency conversion and you use your bank account or PayPal balance. If you execute the transaction using a debit or credit card or to another currency, a fee will be applicable (see below). 

PayPal’s Friends and Family vs. Goods and Services

When using PayPal, it's important to know the differences between PayPal's Friends and Family feature and the Goods and Services feature.

Friends and Family is best for casual, non-commercial transactions, like sending money to family or splitting the bill with friends, as it's mostly fee-free. However, it lacks buyer and seller protections. 

Goods and Services, on the other hand, is for commercial transactions, offering added security, buyer protection, and seller protection. These payments are subject to a fee, incurred by the seller of the item you’re purchasing. 

The pros and cons of using PayPal Friends and Family

The advantages of using the feature

Firstly, fee-free transactions make it an economical choice for sending money to loved ones or splitting expenses with friends. The Friends and Family feature allows users to save on unnecessary fees, maximising the value of their transfers. 

Secondly, PayPal ensures enhanced security measures, safeguarding users' transactions through encryption and fraud prevention tools. This instils confidence in users, knowing their funds are protected from unauthorised access. 

Lastly, the convenience and speed of PayPal Friends and Family make it an attractive option for quick and seamless money transfers, ensuring that recipients receive the funds promptly. 

The limitations of the feature

While PayPal Friends and Family offers numerous benefits, it also has certain limitations and requires responsible use. 

Firstly, it's important to be aware of the restrictions on payment types allowed in Friends and Family transactions, as certain purchases, such as for goods or services, should be conducted through the Goods and Services option for added protection. Using PayPal Friends and Family for business-related transactions violates PayPal's terms of service, potentially leading to account limitations. 

Secondly, following best practices ensures secure transactions, such as only sending money to people you trust, verifying recipient information, and keeping communication open. 

As mentioned above, it’s important to note that when sending funds to friends and family in other currencies there are fees involved. This fee is 5% of the amount being sent (a minimum of £0.99 and a maximum of £2.99). Then, there’s an additional 3% charge on the currency exchange that senders are liable for. We explore these fees in a comparison table below, using a clear example. 

Tap’s money transfer solution

Tap is a fully regulated fintech platform, offering a similar money-sending service, streamlining the process of converting currency and sending funds abroad. From the app, these funds can be sent to any bank account, whether an individual, a municipality bill, or a business account. 

Whether you’re sending funds to a friend overseas for their birthday or paying an electricity bill from your holiday villa, Tap provides a secure and fool-proof transfer option. 

When your transaction involves a change in currency, there will be a small charge determined by the account that the sender holds. Note that at Tap there are three tiers of accounts: the standard account, the Black account, and the Titanium option. You can learn more about the Tap accounts and how they work here. 

Based on the three account options, the following fees will be incurred when sending money that requires a currency conversion:

Standard: €2.00 (+ exchange markup of 1.5%)

Black: €1.00 (+ exchange markup of 1%)

Titanium: Free of charge with an exchange markup of 0.6%

Sending money abroad fee comparison: PayPal vs Tap 

Taking these fees into account, let’s compare expenses. 

*based on the current exchange rate, prices fixed in Euros as stated in the paragraph above. 

Should you send GBP from your Tap GBP wallet to a GBP bank account, the exchange markup fee is wavered, costing €0 - €2 depending on your account. This remains true no matter where in the world you might be. 

For example, if you’re sending funds from Spain to your British municipality, you can select to send GBP from your Tap wallet. 

Tap2Tap payment solution

With the Tap2Tap feature, you can enjoy fee-free and limitless money transfers, offering instant and secure transactions without any restrictions. The real-time payment network supports both crypto and fiat currencies, that’s GBP, EUR, USD, and 40+ cryptocurrencies. All you need to do is have a positive balance and the recipient must simply have an account. 

When using this service but changing currencies, there is a fee involved, which we’ll clearly outline below. 

For example:

Say you want to send £50 to your mom for Mother’s Day. If you both have Tap accounts, this transaction is free of charge. You simply need to have the available balance and execute the transaction using the Tap2Tap feature. 

If your mom lived outside the country and required a different currency, Euros for example, you can still send her the money for a small fee, used to execute the currency conversion. This fee structure is determined by the Tap account that you have, either Standard, Black or Titanium. 

How to use the Tap2Tap feature

Making use of Tap’s free transactions is easy. All you need to do is create an account and load the currencies you wish to use. In order to send the instant payments, the recipient of the funds must also have a Tap account. 

In order to open a Tap account, you and your recipient will need to:

  1. Download the Tap app
  2. Create an account
  3. Complete the KYC identity verification process

You will then need to load your account with EUR or GBP, or one of the over 40 different cryptocurrencies. Then simply open the wallet you wish to transfer the funds of, select Send, and choose the relevant option. 

Final thoughts

In conclusion, PayPal Friends and Family provides a convenient way to send money to loved ones, but it's essential to be aware of the associated fees and limitations. While it offers fee-free transactions within the UK, international transfers and debit/credit card payments incur charges. Additionally, the lack of buyer and seller protections makes it best suited for casual, non-commercial transactions. 

To take money transfers to the next level, Tap offers fee-free and limitless transactions within the same currency, supporting both crypto and fiat currencies, and also offers cost-effective transactions when converting currencies. By making informed choices and utilising the Tap app, users can enjoy seamless and economical money transfers.


  1. PayPal: What's the difference between Friends and Family or Goods and Services
  2. PayPal fees
  3. Tap Connect Network, please read alongside the Terms and Conditions
  4. Tap account options
  5. All of the above is subject to customers’ passing an identity verification process.


This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.


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