PayPal has made a revolution in the world of online payments. It is an online financial service and digital payment system that allows individuals and businesses to securely make and receive payments. Launching in 1998, PayPal has revolutionized the way people transfer money, from person-to-person payments to convenient payment processing for merchants. With its global presence, PayPal is a trusted payment provider for people in more than 200 countries.
Today, buying stuff and paying online anywhere in the world has become even easier, than paying at the local store. You can make it with a few clicks, without even leaving your home. And using PayPal.com is not only fast and convenient, but it is also safe. You, as a buyer, are protected to some extent from fraudulent activities having the option to get your money back if something goes wrong.
History of PayPal
PayPal was founded back in 1998 by two guys – Max Levchin and Peter Thiel, initially under the name “Confinity“. It began as a security-focused business, allowing users of PDA (personal digital assistant) devices to have a digital wallet. This way it was impossible for their money to be stolen because it was even not real – just encoded digital information which only the owner of the wallet could use. In 1999 the e-mail online payments technology was born, transforming PayPal into what it is today. Its users were able to pay online instantly and easily. This made it the preferred payment method for both merchants and buyers on the big and very popular auction site – eBay.com. The sellers there began placing the logo of PayPal on the pages with their offers, which really boosted its popularity – it was free advertising. Its founders spotted this trend and made some improvements, making the payments there even easier. In January 2000, the number of registered users of PayPal reached 100 000. In March of the same year, Confinity merged with its rival company – x.com, taking advantage of its brand and popularity. This turned out to be a very smart move… Just two months later, the registered user accounts grew 10 times to 1 000 000. In the middle of 2001, Confinity changed its name officially to PayPal.
The huge and fast success attracted the attention of some organized crime groups and hackers, who used the service for fraudulent activities and money laundering. That brought some serious troubles for the company, which was even banned in some states like Louisiana. FBI and some government authorities started investigating PayPal’s business. Since then, the company made some significant security improvements. Despite all of this, the company’s image stayed intact, and its users continued to grow. Initially, a $10 bonus was offered for new accounts, as some other bonuses for referring friends. This was an expensive marketing strategy but turned out to be really effective. Soon, PayPay became the standard and the most usual way of paying online.
Paypal’s IPO – Going Public…
In February 2002, PayPal launched a very successful initial public offering (IPO), offering 5,4 million shares at $13. The trading session started at $15,41 per share, but buyers quickly drove the price up bringing it to over $20 at the end of the trading day.
eBay’s Purchase
In 2002 more and more eBay users were choosing to make their payments via PayPal, than using the payment system of the auction called “Bullpoint”. Beating their own system was a clear sign for eBay’s management about the potential of the new company. And they wanted to take control over this… On the 8th of July, 2002, eBay announced, that they were buying PayPal for $1,5 billion. This way they got something that had already been a big part of their business – their payment system.
What is Venmo
In 2013, PayPal made its next cool acquisition – a mobile payments company named Venmo!
Venmo is an increasingly popular mobile peer-to-peer payment system developed and owned by PayPal. For the millions of people using Venmo and other mobile payment systems, sending money to friends and family has never been easier. With Venmo, a user can easily link a bank account or credit card to transfer money to anyone or any business with a valid email address or cell phone number.
Described as a “social payments app” by its developers, Venmo also has some features that make it stand out from other payment systems. It allows users to message friends when sending and requesting money, essentially putting a post in the newsfeed between users which can be liked or commented on. Additionally, to ensure the security and privacy of money transactions, all records of transfers are hidden from public view unless the user opts out of this feature. In addition, Venmo doesn’t charge fees for personal payments made in US dollars, making it a convenient tool for everyday use. It also provides an escrow-like service so that customers can accept payments from other businesses without having to provide bank information.
Venmo is currently one of the top digital payment services in the USA. As the system is slowly taking over traditional methods of paying for goods, and services and sending money worldwide.
- 77.7 million active accounts used Venmo only in the US in 2022
- Venmo processed $230 billion in total transaction volume in 2021 which was a 44% increase compared to 2020
- Venmo $850 million in revenues in 2021, an 88% increase from 2020 figures
Interesting facts about PayPal
- It Started as an Online Bank – Paypal was founded in 1998 as an online banking service and money transfer system. It quickly became popular, due to its convenient and secure features, and soon became one of the most popular banking services around the world.
- It Has Over 429 Million ACTIVE Users (2022) – According to Paypal’s latest financial report, it has 429 million active accounts and processes more than 15,4 billion transactions in 2020. This makes it one of the world’s largest online payment services.
- 87% of online shoppers used PayPal in 2021, and 93% of Italian stores accept payments via PP.
- 58% of Americand had an account with the company in 2018
- There’s a Physical Card – The Paypal Cash Card is a physical card linked to your Paypal account which allows you to make payments at stores that accept VISA cards (as well as online). This gives you more flexibility in how you use your funds since you don’t have to use your bank account or debit/credit card information on unfamiliar websites or apps
- It Can Be Used To Donate Money – Paypal has also been used to donate money to charities around the world in order to help those most affected by crises like natural disasters or financial meltdowns
What Is PayPal Today?
Today PayPal is the ultimate leader in online payments worldwide. It operates in more than 200 countries and makes it possible for users from all around the world to make quick, easy, and secure payments in 25 different currencies. The registered user accounts were more than 430 million by the end of 2022, and the active ones were more than 100 million. The company made payments possible across different locations, currencies, and languages and is definitely one of the greatest inventions of our century. The service also allows everyone to pay in any way she would prefer, including through bank accounts, PayPal Smart Connect, credit cards, or simply account balances without sharing important and sensitive financial and personal information.
As a payment processor, PayPal has become a go-to choice for business owners who sell goods and services online. Business owners can use PayPal to streamline payments from customers and possibly save time on administrative tasks related to accepting payments. For the consumer, it means a safe and familiar way to pay for purchases.
The benefits of using PayPal as a payment method include fast deposit times, no additional fees when sending funds between friends or family members, and buyer protection service with eligible purchases made through merchants. These consumer-oriented features are appealing to many online shoppers who want peace of mind at prices when making purchases online.
For business owners and merchants looking to reduce checkout friction, speed up cash flow and automate paperwork associated with accepting payments, PayPal offers an array of services to fit their needs. This includes everything from invoicing customers through email to running full-scale point-of-sale activities in physical stores. On the back end, businesses can access all of their transaction data quickly and easily through an online account dashboard or mobile app too.
Essentially, PayPal is a secure financial intermediary that seamlessly takes care of all the transfers of funds that occur during any transaction – either in person or over the Internet. It’s become indispensable in today’s world where quick money transfers are necessary for both day-to-day activities and major business operations alike. Whether you’re sending funds across the world or buying an item at your local store, PayPal will help make sure your financial transactions take place as securely as possible.
How Does It Work?
For more details about what is Paypal, how exactly the payments work, and some more interesting information, you can visit: What Is Paypal
If you enjoyed the story, please press one of the cool social buttons below and share it with friends. Thanks for supporting our site!
Check some other cool startup articles:
The History Of Amazon.com – How Jeff Bezos Started Up The Company
The History of Reddit – How Alexis Ohanian and Steve Huffman Started The Company
How George Eastman Started The Kodak Company – History
How BMW Was Started – The History Of Bayerische Motoren Werke Company
A History of Tumblr – See How David Karp Founded The Company
Alphabet Inc’s (Google) History – The Start Up Story of Sergey Brin And Larry Page
The History of eBay – Pierre Omidyar And His Amazing Start Up Story
What Is Mad Mimi’s Start Up Story – An E-mail Marketing Company Started 100% From the Ground
