Key Stats
Revenue (2024): $31.80 billion
Market Cap: $60 billion (as of November 2025)
Active Accounts: 434 million worldwide
Employees: 24,400
Headquarters: San Jose, California, USA
PayPal operates as a global digital payments platform that allows consumers and businesses to send and receive money online. The company processes payments in over 200 markets and supports 25 currencies.
PayPal owns several well-known brands including Venmo, Braintree, Xoom, and Honey. The platform serves both individual users and merchants through online checkout, peer-to-peer transfers, and business payment solutions.
Founded in 1998 as Confinity, the company launched its money transfer service in 1999. eBay acquired PayPal in 2002 for $1.5 billion. PayPal became an independent public company again in 2015 when it separated from eBay.
PayPal History
1998
Max Levchin, Peter Thiel, Luke Nosek, and Ken Howery founded Confinity in Palo Alto, California. The company initially developed encryption software for handheld devices.
1999
Confinity launched the PayPal money transfer service, allowing users to send money via email. The service gained traction among eBay auction sellers and buyers.
2000
X.com, founded by Elon Musk, acquired Confinity in March. The merged company focused on PayPal and reached over 1 million users on eBay by April.
2001
X.com was renamed PayPal Inc. The company expanded rapidly as the dominant payment method for online auctions. About 70% of eBay auctions accepted PayPal payments.
2002
PayPal went public in February, becoming the first company to IPO after September 11, 2001. eBay acquired PayPal in October for $1.5 billion in stock.
2013
PayPal acquired Braintree for $800 million, which included the peer-to-peer payment app Venmo. This purchase positioned PayPal strongly in mobile payments.
2015
PayPal separated from eBay and became an independent publicly traded company on July 20. The spin-off allowed PayPal to partner with other e-commerce platforms.
2019
PayPal acquired Honey Science for $4 billion, its largest acquisition. The deal added coupon-finding and price-tracking tools to PayPal’s consumer offerings.
PayPal Co-founders
Max Levchin
Ukrainian-American entrepreneur who co-founded Confinity in 1998. Levchin served as Chief Technology Officer and developed PayPal’s security and anti-fraud systems.
Peter Thiel
Co-founded Confinity and served as PayPal’s CEO until the eBay acquisition. Thiel later became a prominent venture capitalist and co-founded Palantir Technologies.
Luke Nosek
Co-founded Confinity and later became a partner at Founders Fund. Nosek focused on marketing and business development during PayPal’s early growth phase.
Ken Howery
Co-founded Confinity and served as PayPal’s Chief Financial Officer. Howery later co-founded Founders Fund with Thiel and served as U.S. Ambassador to Sweden.
PayPal Acquisitions
PayPal has grown through strategic acquisitions that expanded its payment capabilities, geographic reach, and product offerings. The company has completed more than 20 acquisitions since separating from eBay in 2015.
The 2013 acquisition of Braintree for $800 million remains one of PayPal’s most important purchases. Braintree processed over $4 billion in mobile payments annually when acquired. The deal included Venmo, which Braintree had purchased for $26.2 million in 2012. Venmo now processes over $60 billion in annual transactions and serves millions of users for peer-to-peer payments.
PayPal bought Xoom in 2015 for $890 million to strengthen international money transfers. Xoom allows users to send money, pay bills, and reload phones in countries across Latin America, Asia, and Africa. The acquisition gave PayPal a stronger position in cross-border payments.
The 2018 purchase of iZettle for $2.2 billion brought in-store payment capabilities to PayPal. iZettle, sometimes called the Square of Europe, provides card readers and point-of-sale systems for small businesses. The acquisition expanded PayPal’s presence in physical retail across Europe and Latin America. In the same year, PayPal acquired Hyperwallet for $400 million to improve payout capabilities for marketplace platforms.
Honey Science joined PayPal in 2019 for $4 billion. Honey’s browser extension automatically finds and applies discount codes for online shoppers. The company had 17 million monthly active users when acquired. PayPal integrated Honey’s price-tracking and rewards features into its ecosystem.
PayPal purchased Paidy in 2021 for $2.7 billion to enter Japan’s buy now, pay later market. Paidy allows Japanese consumers to make purchases and pay later through convenience stores or bank transfers. The acquisition positioned PayPal in one of Asia’s largest e-commerce markets.
PayPal Revenue
PayPal generated $31.80 billion in revenue during fiscal year 2024. This represented a 6.81% increase from the previous year’s $29.77 billion. Transaction revenue accounts for about 91% of total revenue.
PayPal Market Cap
PayPal holds a market capitalization of approximately $60 billion as of November 2025. The company reached a peak valuation exceeding $345 billion in July 2021 before declining amid increased competition and changing market conditions.
PayPal Competitors
PayPal competes against payment processors, digital wallets, and fintech companies across consumer and merchant services. Stripe leads in developer-focused payment processing, while Square (Block) dominates point-of-sale systems for small businesses. Apple Pay and Google Pay capture mobile wallet market share.
| Company | Headquarters | Primary Focus |
|---|---|---|
| Stripe | San Francisco, USA | Online payment processing, APIs |
| Block (Square) | San Francisco, USA | POS systems, Cash App |
| Apple Pay | Cupertino, USA | Mobile wallet, contactless payments |
| Google Pay | Mountain View, USA | Digital wallet, P2P transfers |
| Adyen | Amsterdam, Netherlands | Enterprise payment processing |
| Klarna | Stockholm, Sweden | Buy now, pay later |
| Zelle | Scottsdale, USA | Bank-to-bank P2P transfers |
| Mastercard | Purchase, USA | Card networks, payment processing |
| Amazon Pay | Seattle, USA | E-commerce checkout |
| Wise | London, UK | International money transfers |
FAQs
Who founded PayPal?
Max Levchin, Peter Thiel, Luke Nosek, and Ken Howery founded Confinity in 1998. The company launched the PayPal service in 1999 and merged with X.com in 2000.
When did eBay acquire PayPal?
eBay acquired PayPal in October 2002 for $1.5 billion in stock. PayPal operated as an eBay subsidiary until spinning off as an independent company in July 2015.
What companies does PayPal own?
PayPal owns Venmo, Braintree, Xoom, Honey, Zettle (formerly iZettle), Hyperwallet, and Paidy. These subsidiaries handle peer-to-peer payments, merchant processing, and international transfers.
How many people use PayPal?
PayPal has 434 million active accounts worldwide as of 2024. The platform operates in over 200 markets and processes transactions in 25 currencies.
What is PayPal revenue?
PayPal generated $31.80 billion in revenue during fiscal year 2024. Transaction revenue from payment processing fees accounts for approximately 91% of total revenue.