You need to register with pay-pal first. Once youve done that its pretty simple. If you win an auction on ebay, you just follow the on-screen instructions. If you want to pay using pay-pal, youll be prompted for your pay-pal password and the payment is transfered from your bank account automatically.

You can also use it as like another bank account, where you can transfer funds from your bank account into your pay-pal account if you want.

You can also transfer funds through it to someone else by just using their email address providing they have a pay-pal account too. Its very simple once you set it all up.