Use Case Diagram of PayPal
A Use Case Diagram helps visualize how various users (actors) interact with the system and what functionalities the system provides. In the case of PayPal, both individual users and external systems interact with the payment platform for various financial operations.
Actors in PayPal System
(These interact directly or indirectly with the system and are shown outside the system boundary in the use case diagram.)
- Registered User (Customer)
- Merchant (Seller)
- System Administrator
- Banking System
- Guest User
- Dispute Resolution Agent
- API Consumer / Payment Gateway
Main Use Cases in PayPal
(These are the core functionalities provided by the PayPal system. Each use case is depicted inside the system boundary.)
Register an Account
- Users can create a PayPal account with personal or business information.
Login to Account
- Required for accessing the account and performing transactions.
Send Money
- Registered users can transfer funds to another PayPal account or email address.
Receive Money
- Users and merchants receive payments for goods/services.
Withdraw Funds
- Move funds from PayPal balance to a linked bank account.
Link Bank or Card
- Users connect their financial institutions for transactions.
Make Payment as Guest
- Non-registered users can checkout via PayPal.
Generate Invoice
- Merchants can create and send invoices to customers.
File a Dispute
- A buyer can raise a complaint against a transaction.
Resolve Dispute
- The Dispute Agent investigates and resolves the issue.
Verify Identity (KYC/AML)
- The system verifies identity and compliance data of users.
Manage Account Settings
- Update email, password, notification preferences, etc.
Integrate with External App (API)
- E-commerce or mobile apps connect to PayPal using APIs.
Monitor Fraud or Risk
- System Admin tracks suspicious activity for security.
How to Explain to Students
- Start by explaining what a Use Case Diagram is.
- Describe each actor and their real-world counterpart.
- Walk through each use case, who initiates it, and what it accomplishes.
- Emphasize the interactions between actors and use cases.
- Optionally, draw this in a diagramming tool like Lucidchart, StarUML, or manually on the board.
