First up in this series of tools for the Young Entrepreneur is Paypal. When it comes to the internet, the first thing you need (apart from a computer, mouse and internet connection) is a means of sending and receiving money. For every single eBay user out there, and most small entrepreneurs, the easiest and most acknowledged form of payment is Paypal. To quote from their website,

"PayPal allows any business or consumer with an email address to securely, conveniently and cost-effectively send and receive payments online. Our network builds on the existing financial infrastructure of bank accounts and credit cards to create a global, real-time payment solution. We deliver a product ideally suited for small businesses, online merchants, individuals and others currently underserved by traditional payment mechanisms."

As a result, almost anyone can open up a Paypal account. The tricky part for us youngsters is that we will have to have an adult credit card and bank account for us to be verified on Paypal. This is essential, as by being verified, you can form a trustful relationship with whoever you may be dealing with. For me, I just got my Dad to give in his details, and then I added my own bank account, so I didn't have to rely on anyone else to help me get started on the net, and so I could use my own cash.

Although sending money requires no fee, there is a small charge for receiving. At the highest tier, Paypal charges a fairly small 3.4% + 20p for us Brits. However this can be lowered if you increase the amount of transactions you do.

The reason I started with Paypal, is that everything you do will require the use of sending or receiving money if you want to make it big on the net. Stuff like hosting and domain names can be bought "the Paypal way", and receiving advertising or money for jobs can also come in through this method.

Paypal allows you as a starting young entrepreneur to connect with other people, without you having to meet them face to face. What's more, there's no need for you to rush off to the bank, as you can withdraw your Paypal balance straight to your bank account.

Unfortunately, Paypal have degraded their name in the few recent years. Many people have complained about "chargebacks" for items bought with a stolen credit card from eBay, and Paypal appearing to place their account on hold and take their earnings. As this has not happened to me, I don't know how bad the situation is, but there have been some "hate-sites" setup, including PaypalWarning.com and PaypalSucks.com. Bear in mind though, that Paypal does have over 100 million accounts. You decide who to believe!

I would definitely recommend you open a Paypal account with an adult or sibling who is over 18 years old. It will help you establish yourself in the WorldWideWeb, and so long as you are sensible and take all the necessary precautions, there's not much that can go wrong. Young entrepreneurs need to have a payment system, and I doubt that there are any as cheap, easy-to-use and effective as Paypal.

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