A merchant account is a bank account that accepts payments in several ways.

Mostly used for businesses, merchant accounts can accept payments through several means, from debit and credit cards to cash deposits and transfers.

This makes it easier for customers to make purchases and pay through whichever means is most suitable or comfortable for them.

Even though Paypal is an online payment processor, it has found a way to process payments using credit and debit cards, just like a merchant account, making it easier for its entrepreneur users to get payments from their customers.