Difference between revisions of "PayPal"
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==History== | ==History== | ||
| − | PayPal initially was founded under the name Confinity in 1998 as a company which developed cryptography services used for making Palm Pilot payments. It was not until 1999 when the company officially launched and adopted the name PayPal as a money transfer service. The following year, Confinity merged with Elon Musk’s company X.com, adopted its name and began solely focusing on further research and development into the PayPal product. After a corporate restructuring in 2001, the company decided to change its name one last time to PayPal Inc. since many of its surveyed consumers found the name X.com to be vague. With only 600 employees and $50 million in revenues during the final quarter of 2001, PayPal Inc. decided to file for an IPO and was taken public in 2002 with share prices of $13. Upon becoming a public company, PayPal Inc. was soon acquired by the online auction and shopping website eBay and quickly grew to become the primary method of payment used on the site as eBay gradually phased out its own competing payment service Billpoint. PayPal Inc. remained a subsidiary of eBay until 2014, when eBay and its board decided to separate the two companies allowing PayPal Inc. to become its own individual public company. | + | PayPal initially was founded under the name Confinity in 1998 as a company which developed cryptography services used for making Palm Pilot payments. It was not until 1999 when the company officially launched and adopted the name PayPal as a money transfer service. The following year, Confinity merged with Elon Musk’s company X.com, adopted its name and began solely focusing on further research and development into the PayPal product. After a corporate restructuring in 2001, the company decided to change its name one last time to PayPal Inc. since many of its surveyed consumers found the name X.com to be vague. |
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| + | With only 600 employees and $50 million in revenues during the final quarter of 2001, PayPal Inc. decided to file for an IPO and was taken public in 2002 with share prices of $13. Upon becoming a public company, PayPal Inc. was soon acquired by the online auction and shopping website eBay and quickly grew to become the primary method of payment used on the site as eBay gradually phased out its own competing payment service Billpoint. PayPal Inc. remained a subsidiary of eBay until 2014, when eBay and its board decided to separate the two companies allowing PayPal Inc. to become its own individual public company. | ||
==Services== | ==Services== | ||
Revision as of 00:03, 21 February 2017
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PayPal is an American e-commerce service which enables users around the world to send and receive payments and money transfers over the internet. Initially founded in 1998 by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery, the company was then taken public in 2002 and was bought by eBay later the same year. In addition to servicing online financial transactions between individuals, PayPal also operates as an intermediary between online businesses and customers. As of 2017, PayPal has nearly 200 million registered users and allows transactions in 25 different currencies. The company is currently headquartered in San Jose, California and has 18,000 employees.
History
PayPal initially was founded under the name Confinity in 1998 as a company which developed cryptography services used for making Palm Pilot payments. It was not until 1999 when the company officially launched and adopted the name PayPal as a money transfer service. The following year, Confinity merged with Elon Musk’s company X.com, adopted its name and began solely focusing on further research and development into the PayPal product. After a corporate restructuring in 2001, the company decided to change its name one last time to PayPal Inc. since many of its surveyed consumers found the name X.com to be vague.
With only 600 employees and $50 million in revenues during the final quarter of 2001, PayPal Inc. decided to file for an IPO and was taken public in 2002 with share prices of $13. Upon becoming a public company, PayPal Inc. was soon acquired by the online auction and shopping website eBay and quickly grew to become the primary method of payment used on the site as eBay gradually phased out its own competing payment service Billpoint. PayPal Inc. remained a subsidiary of eBay until 2014, when eBay and its board decided to separate the two companies allowing PayPal Inc. to become its own individual public company.
Services
Since its initial inception as the payment service used for eBay transactions, PayPal Inc. has vastly expanded and branched out into multiple other product lines offering an array of different and more advanced services. Using the $60 million raised during its first IPO, PayPal Inc. launched an aggressive and unique marketing campaign to expand its user base. The company created a referral program which offered $10 to each new user who signed up for PayPal and added a credit card to their account as well as $10 to the person who referred them. This strategy used until late 2003 was a tremendous success and led to a 7-10% daily growth rate in customers and ultimately increased the PayPal user base from 100,000 members to over 100 million by 2010. Over this time period, PayPal began offering numerous new services including:
- Peer-to-peer services – Providing the option of online payment transactions between individuals
- PayPal Credit – a virtual line of credit for consumers to all online vendors that accept PayPal
- PayPal Here – a mobile payment system similar to Square Reader intended for small businesses
- PayPal Mobile – provides users a way to make and receive payments via text messages
- PayPal MasterCard – debit card used to withdraw PayPal funds from any MasterCard ATM
- PayPal App – allows users the ability to make mobile payments to each other around the world as well as to participating vendors
PayPal also provides PayPal Digital Gifts, a system to buy and send gift cards online for hundreds of brands.
Ethical Concerns
Fraud
Security
Privacy
References
- [1]https://www.cnet.com/news/ebay-picks-up-paypal-for-1-5-billion/
- [2]https://www.ebayinc.com/stories/news/ebay-inc-and-carl-icahn-settle-proxy-fight/?utm_source=301Redirect&utm_medium=301Redirect&utm_campaign=301Redirect
- [3]http://www.businessinsider.com/the-paypal-mafia-is-even-more-powerful-2011-11?op=1
- [4]http://www.referralcandy.com/blog/paypal-referrals/
- [5]https://www.paypal.com/us/webapps/mpp/about-paypal-products
