Paper wallets are physical items or documents that have a private address printed out and a new public address. It allows its users to receive bitcoin from another wallet for improved security.

Paper wallets, also known as non-custodial "cold storage", are used because users can control their private keys and print them out. This eliminates the risk of hackers gaining access to the information through an internet connection.

It's only possible for an attacker or malicious actor to physically get hold of the piece of paper that contains your private key in order to steal your funds.