Is there a downside to paying with PayPal?

Yes, there can be downsides. PayPal may charge fees for certain funding methods, business payments, or instant transfers. Account holds, disputes, and limited access can also frustrate users when transactions trigger fraud reviews. Some sellers dislike the risk of chargebacks or the complexity of compliance. Privacy can be another concern because PayPal stores a lot of payment history and personal information. On the other hand, PayPal can provide useful buyer protection in many purchase scenarios. The downside is not that it is bad, but that it is better suited to some transactions than others. For trusted peer-to-peer payments, simpler options may be easier.