PayPal is a company that offers online payment services. It is based in the United States. However, the services offered by PayPal are available to people from all parts of the world. You will be able to use the online money transfer service offered by PayPal instead of paper currency. It has the most popular payment processor for auction sites and vendors as well. Numerous commercial users are accessing it. One of the best things about PayPal is that it could transform the way people make transactions.
PayPal was established as a company back in the year 1998. It went through an initial public offering in the year 2002. Along with that, the company became a fully owned subsidiary of eBay. However, eBay and PayPal became separate companies by the year 2015. It was able to get into the list of Fortune 500 companies back in 2019.
History of PayPal
PayPal was established in the year 1998 by three founders, named Luke Nosek, Peter Thiel, and Max Levchin. The initial name of the company was Confinity. It was a company that developed handheld devices and security software for the people. However, the company went through a rapid transformation in 2000, where it got merged along with X.com. X.com was an online banking platform, which was developed by Elon Musk.
Musk was too optimistic with regards to future success. Along with that, he didn’t think twice before acquiring the company. That’s where PayPal was born. The company was officially named PayPal back in the year 2001. It became a public company by the year 2002. The initial public offering of PayPal took place in the year 2002. From that, the company could earn $61 million.
PayPal was able to take its operations to the next level when it was purchased by eBay back in 2002. In fact, eBay decided to purchase PayPal for a price of $1.5 billion. Along with that, eBay was able to use PayPal as the payment method on their auctions. By that time, more than 70% of the auctions that were completed in eBay used PayPal as the payment method. That’s where PayPal was able to become the default payment method for eBay. Along with that, the other subsidiaries of eBay started using PayPal as well.
In the year 2005, PayPal was able to become a VeriSign payment solutions provider. This provided added security support to the services offered by PayPal. After two years, PayPal could get into a partnership with MasterCard. This resulted in the development of PayPal Secure Card Service. It provided the customers’ support to make payments on the website, which is accepting PayPal payments directly. The company was able to earn billions of dollars in revenue with this.
The spin-off of PayPal from eBay took place in the year 2014. Along with that, PayPal is operating as a standalone company. This spinoff was completed in the year 2015.
Services offered by PayPal
PayPal is one of the most preferred methods among people to accept payments. There is a high demand for the services offered by the company as well. In fact, PayPal is currently offering its solutions in 202 different markets. Moreover, the company has got 305 million registered and active accounts.
While using PayPal, people are provided with the opportunity to send and receive funds. The services offered by PayPal are available in 25 different currencies across the world as well.
The services of PayPal provide an opportunity for people to go ahead and make financial transactions on the internet with minimum struggles. That’s because they have the freedom to complete fund transfers electronically. They can send funds electronically to other people as well as businesses. The convenience of fund transfers associated with PayPal contributed heavily towards its popularity within a short period of time.
It is also possible for people to purchase from websites with ease while using PayPal. In other words, they are provided with the chance to send payments and receive payments from online auctioning websites such as eBay. Moreover, they will be able to sell goods or purchase goods by using PayPal as the payment method. They are also provided with the chance to receive donations or donate money to a worthy cause while using PayPal as the payment option.
A person doesn’t need to have a PayPal account to keep on using the services offered. That’s because PayPal can be used only as a payment gateway. If you have an online store and are looking forward to getting a payment gateway integrated into it, PayPal will be one of the best options available out there to consider. However, people who have PayPal accounts will be able to make payments in different currencies with ease.
Up until the year 2016, PayPal was offering student accounts. Parents were able to create accounts for their kids and allow them to transfer money with ease. In addition to that, the students were provided with the chance to set up a debit card and start using it. However, this service is no longer available through PayPal.
Digital marketing with PayPal
PayPal provides various marketing activities through multiple channels. This provides freedom for people to use the services offered by PayPal in many different ways. PayPal’s marketing activities include outdoor advertising, TV commercials, display advertisements, and Facebook marketing.
People who start using PayPal for digital advertising will be able to receive fee analytics. Then the traders will be able to use PayPal for managing their online payments as well. The free tracking services offered by PayPal provide all the support needed by the target consumers and traders to get their work done at the end of the day. The code of PayPal is gathering all consumer information on the website. Hence, both traders and PayPal can obtain benefits.