First you have to register in PayPal, during which you have to give your email address. All transactions are done through this email.
When you want to take money from a Paypal user, you tell him your registered email address. The person making the payment logs into Paypal's website or app and makes the payment to your email.
With this the money comes to your Paypal account. You withdraw money from PayPal account and that money is transferred to your bank account. Yes, some charges are taken by Paypal in every transaction.
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