Is a company allowed to send winnings through Paypal?

[jokim]

I'm currently helping the company I work for with a contest and the current prize distribution of money.

Some of the winners were skeptical when we asked for personal information, such as routing number, and I understand why; however, our company thought it was appropriate because they are required for direct bank transfer.

A few of the winners asked if they could receive money through Paypal instead of direct bank transfer. Was wondering if there were any issues my company may face when doing this.

Also what would be the fees and how would taxes be applied?

Any information upon this topic that helps is much appreciated

[PayPal_Marissa]

Hi @jokim,

Thank you for posting and welcome to the PayPal Community. I understand you have concerns on how to send money through PayPal. If the company you work for has a PayPal account, they can send payments as "Goods and Services" or "Friends and Family" to any PayPal user through their email address. Here's how you can send payments. There's no fee for sending a payment unless there's a currency conversion involved or if the payment is sent as "Friends and Family" through a debit or credit card. You can learn more information about our fees here. I hope this information helps. - Marissa