Many people have asked the difference between WebMoney and PayPal. Here is a brief comparison. WebMoney is an electronic money and online payment system wherein transactions are made through WebMoney Transfer. It has been in existence since 1998 and currently has over 9 million users. WebMoney supports several types of e-currency, and each e-currency has its own electronic wallet called a Purse. For example, WMZ is equivalent to USD or a Z Purse; WME is equivalent to EUR or an E Purse. You can only transfer funds between purses of equal e-currency such as: R to R-Purse only; Z to Z-Purse only. WebMoney transactions are safe because they do not require a credit card or bank account, and cannot be purchased through PayPal or other means. You can cash out WebMoney, send it to other WebMoney accounts, pay incoming invoices, and wire out funds.

Conversely, PayPal is an e-commerce third-party system in which you can purchase items, goods, or services via the Internet. PayPal accounts can be funded either through a credit card, debit card, savings or checking account. None of the methods of payment are revealed to online merchants. eBay, a subsidiary of PayPal, is a prime example of how PayPal works. You choose an item, click on Commit to Buy, and you are immediately taken to the PayPal site where, if you already have an account, you can then make your payment using the methods described. PayPal also allows you to send money and also invoice customers if you own a business. You can also withdraw money and have it deposited into your bank account.

Unlike WebMoney, you are not held to one type of currency exchange with PayPal. You can purchase items from anywhere in the world and pay for it in your own currency. Similarly, you can sell items or services to anyone in the world and receive payment in your own currency. Currently, PayPal has over 70 million users worldwide.