PayPal allows any business or consumer with an email address to securely, conveniently and cost-effectively send and receive payments online. Our network builds on the existing financial infrastructure of bank accounts and credit cards to create a global, real-time payment solution. We deliver a product ideally suited for small businesses, online merchants, individuals and others currently underserved by traditional payment mechanisms.
The size of our network and widening acceptance of our product have helped us become one of the leading payment network for online auction websites, including eBay. PayPal is also being increasingly used at other e-commerce sites for the sale of goods such as electronics and household items, the sale of services such as web design and travel, and the sale of digital content. Offline businesses, including lawyers, contractors and physicians, have increasingly begun to receive payments online through PayPal. PayPal’s service, which lets users send payments for free, can be used from PCs or web-enabled mobile phones.
PayPal (Europe) S.à r.l. & Cie, S.C.A is duly licenced as a Luxembourg credit institution in the sense of Article 2 of the law of 5 April 1993 on the financial sector as amended and is under the prudential supervision of the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier, with registered office in L-1150 Luxembourg. Since the service is limited to E-money, which does not qualify as a deposit or an investment service in the sense of the Law, customers of PayPal are not protected by the Luxembourg deposit guarantee schemes provided by the Association pour la Garantie des Dépôts Luxembourg (AGDL).
PayPal Inc. (which is a parent company of PayPal (Europe) S.à r.l. & Cie, S.C.A) was acquired by eBay in October 2002, and is located in California, USA.”
PayPal developed after Internet financial services company X.com acquired Confinity in March 2000. Confinity was founded in December 1998 by Max Levchin, Peter Thiel, Luke Nosek, and Ken Howery and in 1999 launched a money transfer service called PayPal. The PayPal money-transfer system was only months old at the time X.com acquired Confinity, but X.com founder Elon Musk was optimistic about its future success. Musk and then-president and CEO, Bill Harris, disagreed on this point and Harris left the company in May 2000. In October, Musk made the decision that X.com would terminate its other Internet banking operations and focus on the PayPal money service. The X.com company was then renamed PayPal and expanded rapidly in 2001 primarily as a result of its use on eBay.
The newly renamed company was offered as a publicly traded company in February 2002 and PayPal was able to turn the corner and become the first dot-com to IPO after the September 11 attacks. The company was acquired by eBay for $1.5 billion later that year. By April 2000, more than 1,000,000 eBay auctions used the PayPal service. 70% of all eBay auctions accepted PayPal payments, and roughly 1 in 4 closed auction listings were transacted via PayPal. As of 2008, PayPal’s total payment volume, the total value of transactions, was US$60 billion, an increase of 27 percent over the previous year, and US$71 billion in 2009, an increase of 19 percent over the previous year.
PayPal became the payment method used by a majority of eBay users (it was also the default choice), and the service competed with eBay’s subsidiary Billpoint, as well asCitibank’s c2it, Yahoo!’s PayDirect, Google Checkout, and Western Union’s BidPay service, all of which closed in subsequent years. PayPal’s present competitors includeWirecard and Moneybookers. eBay Australia was forced to offer PayPal payment alternatives by the Australian Competition & Consumer Commission including bank deposit, cheques and money orders, escrow, and credit cards.
In January 2008, PayPal acquired Fraud Sciences, a privately held Israeli start-up company with expertise in online risk tools, for $169 million, in order to enhance PayPal’s proprietary fraud management systems. In November 2008, the company acquired Bill Me Later, an online payments company offering transactional credit at over 9000 online merchants in the US.The company continued to focus on international growth and growth of its Merchant Services division, providing e-payments for retailers on eBay. In 2011, PayPal announced that it would begin moving its business offline so that customers can make payments via PayPal in stores. As of 2012, PayPal’s total payment volume processed was US$145 billion. and accounted for 40% of eBay’s revenue, amounting to US$1.37 billion in the 3rd quarter of 2012.
In June 2014 David Marcus announced he was leaving his role as PayPal President; Marcus joined PayPal in August 2011 after its acquisition of Zong, of which he was the founder and CEO. David Marcus succeeded Scott Thompson as president, who left the role to join Yahoo.”
*Informations from Paypal.com and Wikipedia.org
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