The exchange of Amazon gift card balances for PayPal funds represents a transaction where an individual transfers the value of an Amazon gift card to another party in return for payment via the PayPal platform. For instance, someone might offer a $100 Amazon gift card and receive $80 in their PayPal account.
This practice addresses the need for liquidity. Individuals may possess gift cards they do not intend to use personally, while others might prefer the flexibility of PayPal funds over restricted spending options. Historically, informal exchanges occurred between individuals, but the rise of online platforms has formalized and expanded this activity.