Is PayPal safe?
Bonus terms
As of November 2, 2026 · paypal.com
- Fee on a $1,000 buy
- $18by bank transfer
- Bank withdrawal time
- Not published
- Coins
- Not published
A New York licence is held by PayPal Digital, Inc, which handles PayPal's US customers. FDIC insurance doesn't cover crypto kept on PayPal. No hack or enforcement action against PayPal appeared in the primary sources we reviewed.
Licences and registrations for PayPal
PayPal Digital, Inc runs PayPal's US business.
PayPal holds licensing approval in New York through a NYDFS licence or charter.
State licences for PayPal appear on PayPal's licences page.
The way your money is held
The pages we read had no proof-of-reserves attestation from PayPal.
For PayPal custody, Paxos Trust Company, N.A. handles custody, trading and transfer. Whether cold storage is used isn't clear.
PayPal users may face text scams and other fraud attempts
No one should receive your PayPal password or 2FA code. Never transfer funds into a "safe wallet" on instructions from a text or call. Contact PayPal only through its app or website.
Is PayPal FDIC insured or uninsured?
FDIC or SIPC insurance doesn't cover crypto held on PayPal.
We earn a commission if you open an account through our links. It does not change the fees you pay or our score.
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What people ask
Is PayPal legit or not?
Yes, PayPal operates as a real business. In the US, PayPal Digital, Inc serves its customers.
Are crypto holdings on PayPal FDIC insured?
Not for crypto. FDIC or SIPC insurance doesn't cover crypto held on PayPal.
If I get a PayPal code I didn't request, what should I do?
See it as a warning. Your PayPal password and 2FA code must not be shared with anyone. Never move funds into a "safe wallet" on instructions from a text or call. Contact PayPal only through its app or website.