PayPal scores 4/5 for encryption, 3/5 for privacy, and 3/5 for track record. Overall safety score: 4/5.

What are the privacy concerns with PayPal?

PayPal security review covering encryption, buyer protection, and data privacy. Learn how PayPal protects your money.

Has PayPal been hacked before?

See our detailed analysis of PayPal's past security incidents and track record at The Opt-Out Project.

Is PayPal Safe? Security Review

Name: Is PayPal Safe? Security Review
Item: PayPal
Rating: 4
Author: The Opt-Out Project

Category: Payment App Company: PayPal Holdings, Inc. Reviewed February 10, 2026

4/5

Overall Safety Score

★ ★ ★ ★ ★

Verdict: PayPal is one of the safer payment platforms available thanks to its buyer protection and mature security infrastructure. However, its extensive data collection and occasional breaches warrant caution.

PayPal is one of the longest-running digital payment platforms with over 400 million active accounts worldwide. It offers buyer and seller protections that most peer-to-peer apps lack, making it a more robust option for online transactions.

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Security Ratings Breakdown

Category	Score	Rating
Encryption	4/5
Privacy	3/5
Track Record	3/5

Security Features

End-to-end encryption for all transactions (TLS/SSL)
Two-factor authentication via app or SMS
Buyer and seller protection programs
Fraud monitoring with machine learning
Optional PayPal Security Key hardware token
PCI-DSS Level 1 compliance

Privacy Concerns

Extensive data collection including browsing habits and device info
Shares data with over 600 third-party partners per privacy policy
Controversial 2022 misinformation policy update (later retracted) damaged trust
Account freezes and holds can lock funds with limited recourse

Past Security Incidents

In January 2023, PayPal disclosed a credential stuffing attack that exposed personal data of approximately 35,000 accounts including SSNs and dates of birth
Multiple phishing campaigns consistently target PayPal users
2020 security vulnerability allowed attackers to steal money via Google Pay integration

How to Stay Safe Using PayPal

Enable two-factor authentication
Use a unique, strong password
Review and limit third-party app permissions
Monitor account activity regularly
Never click PayPal links in emails; go directly to paypal.com
Set up login notifications

Safer Alternatives

Stripe (for merchants)
Apple Pay (better device-level privacy)
Wise (for international transfers)

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Last updated: February 10, 2026