Difference Between PayPal Friends And Family And Goods And Services

Online payments make money transfer a lot easier. With the advent of UPI methods and other ways to transfer money in a cashless manner, various money transfer applications have become popular.

Among those, PayPal is also a quite popular household name.

PayPal Friends And Family vs PayPal Goods And Services

The main difference between PayPal Friends And Family and PayPal Goods And Services is that the former is predominantly used to transfer money to known people while the latter finds use in making commercial payments, mostly to unknown vendors in the marketplace (online as well as offline). Both these services have separate standard operating procedures.

PayPal Friends And Family vs PayPal Goods And Services

PayPal Friends And Family is predominantly used for personal payments. The custom list includes only the people known to the person making payments regularly.

Some of the other ways to identify it include PPFF and PayPal FnF. It does not allow any commercial transactions, even in family businesses.

PayPal Goods And Services is eligible for traders and people who need to buy commodities day in and day out. The provision of PayPal Buyer Protection makes it much more useful than its counterparts.

In case of default, a relay of steps is undertaken to ensure that the vendor followed all the guidelines.

Comparison Table Between PayPal Friends And Family And PayPal Goods And Services

Parameters of ComparisonPayPal Friends And FamilyPayPal Goods And Services
DefinitionPayPal Friends And Family allows electronic transfer of funds between two individuals (acquainted with each other in most cases)PayPal Goods And Services allows electronic transfer of funds between two businesses in line with company contracts and other purchase parameters.
Protections OfferedNo protection is offered unless the payment is converted to Goods and Services. Transactions are completed protected under the PayPal Purchase protection.
Terms of ReferenceThe person asking for money is the “requester” while the person receiving is known to be a part of the “close network” (friends, family, etc). The “sender” and “buyer” are the same as that of a normal business.
Types of Payments SupportedIt allows users to make a single-click payment in addition to outsourcing requests. It allows users to make in-store payments as well as online payments.
International RatesA 4% exchange rate is applied in non-commercial transactions. A 24.5% exchange rate is applied in commercial as well as non-commercial transactions.

What is PayPal Friends And Family?

PayPal Friends And Family come to the rescue when a user needs to send gift cards or a small amount to near and dear ones.

Even though the name includes the terms “friends” and “family”, other financial associates and business partners are also covered under this ambit.

Irrespective of the relation the sender and receiver share, this mode of money transfer was created to facilitate non-commercial transactions. It is less complicated in comparison to GnS.

PayPal Friends And Family is mainly associated with personal accounts on PayPal. On selecting the business option, the user cannot get access to the features listed herein.

This demarcation came up earlier to ensure that the commercial and non-commercial transactions are handled separately, avoiding any sort of defaults in payment.

Thus, the Friends and Family version does not allow the user to save payments for later. In addition, people forming a part of the close network get to control the family members’ accounts if need be.

PayPal Friends And Family is widely revered for its “Send and Request” feature. It allows the user to manage funds in line with the others’ needs. The sender on the other side can transfer it with just one click.

What is PayPal Goods And Services?

PayPal Goods And Services, abbreviated as PayPal GnS, is known to be a breakthrough in the finance industry, thanks to the ease with which the sender can opt for various modes.

By goods, the company implies the purchase of commodities (that can be seen, touched, or felt by human sensory organs) of different monetary values.

On the other hand, services cover essential as well as non-essential services that might be needed at different times.

PayPal Goods And Services allows users to make transactions in two helpful ways – as a buyer or as a seller. In the former category, it is not necessary to pay the amount instantly.

This is because these transfers are aptly covered by PayPal Purchase Protection. A better relay of funds is ensured as it can be broken into parts or be substituted with some bonds in the future.

Contrarily, the sellers have to make sure the money (complete or partial amount, as per the deal) is transferred then and there. A dedicated cash account is also made in furtherance of this objective.

PayPal Goods And Services calls forth higher levels of security as the amounts transferred are mostly huge, owing to the persistence of bulk purchases.

Main Differences Between PayPal Friends And Family And PayPal Goods And Services

  1. PayPal Friends And Family covers non-commercial transactions while PayPal Goods And Services covers commercial transactions.
  2. FnF offers lower degress of protection in comparison to the strict PayPal Business Protection associated with GnS.
  3. The requester requests for money from people in the close network during FnF transactions while sellers and buyers trade seamlessly with GnS.
  4. Payment options include single-click for FnF while GnS can be used for online as well as in-store payments.
  5. The average exchange rate is 4% for FnF and 24.5% for GnS.


Once the user begins handling transactions through the online mode, a lot of security measures need to be kept in mind. Every time an online transaction is successful, keeping a track of the transaction id might help in the long run.

In addition, sharing confidential information is strictly prohibited. For instance, the pin should never be shared with anyone.

All trusted vendors including PayPal come up with occasional offers so that the users keep on searching for more products. The tie-ups with online marketing giants for EMI payments also serve both ventures equally.

Overall, indulging in online money transfers is convenient yet risky.


  1. https://www.atlantafed.org/-/media/documents/banking/consumer-payments/research-data-reports/2018/the-2016-and-2017-surveys-of-consumer-payment-choice-summary-results/rdr1803.pdf
  2. https://www.ingentaconnect.com/content/hsp/jpss/2011/00000005/00000003/art00007

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