As Filed with the Securities and Exchange Commission on October 14, 2010

File Nos. 333-80205

811-09381

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Post-Effective Amendment No. 21

and

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 22

PAYPAL FUNDS

(Exact name of Registrant as specified in charter)

2211 North First Street

San Jose, CA 95131

(Address of Principal Executive Offices)

Registrant's Telephone Number, including Area Code: (408) 967-7000

Dana E. Schmidt

PayPal Funds

2211 North First Street

San Jose, CA 95131

(Name and address of agent for service)

Please send copy of all communications to:

David A. Hearth

Paul, Hastings, Janofsky & Walker LLP

55 Second Street, 24th Floor

San Francisco, California 94105-3441

(415) 856-7000

 It is proposed that this filing will become effective:

	immediately upon filing pursuant to paragraph (b)
X	on November 12, 2010 pursuant to paragraph (b)
	60 days after filing pursuant to paragraph (a)(1)
	on (date) pursuant to paragraph (a)(1)
	75 days after filing pursuant to paragraph (a)(2)
	on (date) pursuant to (a)(2) of Rule 485

If appropriate, check the following box:

x The post-effective amendment designates a new effective date for a previously filed post-effective amendment.

Explanatory Note

This Post-Effective Amendment No. 21 to the Registrant’s Registration Statement on Form N-1A is being filed pursuant to paragraph (b)(1)(iii) of Rule 485 of the Securities Act of 1933, as amended (the “1933 Act”), solely for the purpose of delaying, until November 12, 2010, the effectiveness of the registration statement for the PayPal Fund for Good (the “Fund”), filed in Post-Effective Amendment No. 18 on June 8, 2010, Post-Effective Amendment No. 19 on August 20, 2010 and in Post-Effective Amendment No. 20 on September 16, 2010, each pursuant to paragraph (a) of Rule 485 of the 1933 Act.

This Post-Effective Amendment No. 21 incorporates by reference the information contained in Parts A, B and C of Post-Effective Amendment No. 18.

 SIGNATURES FOR THE REGISTRANT

Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all the requirements for the effectiveness of this Registration Statement pursuant to Rule 485(b)(1)(iii) of the Securities Act of 1933, as amended, and has duly caused this Post-Effective Amendment No. 21 to the Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of San Francisco and the State of California on the 14th day of October 2010.

PAYPAL FUNDS

(Registrant)

By:           /s/ Dana E. Schmidt  

Name:           Dana E. Schmidt

Title:           President and Principal Executive Officer

Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 21 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature                                                               Title                                                                              Date

/s/ Dana E. Schmidt                                         President and Principal Executive Officer          October 14, 2010

Dana E. Schmidt

/s/ Omar J. Paz                                                  Treasurer and                                                        October 14, 2010

Omar J. Paz                                                         Chief Financial Officer

              *                             Trustee                                                                  October 14, 2010

Richard D. Kernan

             **                             Trustee                                                                October 14, 2010

John P. McGonigle

              *                             Trustee and Chairman                                         October 14, 2010

Kevin T. Hamilton

*,** By: /s/ David A. Hearth

                David A. Hearth,

                As Attorney-in-Fact

________________________

* Pursuant to Powers of Attorney, each dated February 25, 2003, for Richard D. Kernan and  Kevin T. Hamilton are incorporated herein by reference to PEA No. 7.

** Pursuant to Power of Attorney, dated September 18, 2008, for John P. McGonigle is incorporated herein by reference to PEA No. 15.