Paypal was established in 1998, and it was purchased by eBay a few years later in 2002. It cost eBay a whopping $1.5 billion dollars to acquire the payment processing company. Paypal is now located in Mountain View, California.
PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to traditional paper methods such as checks and money orders.
A PayPal account can be funded with an electronic debit from a bank account or by a credit card. The recipient of a PayPal transfer can either request a check from PayPal, establish their own PayPal deposit account or request a transfer to their bank account.
It was started by two men named Max Levchin and Peter Thiel. Levchin is a computer programmer from Kiev, Ukraine. He and his family moved to the United States and he received his formal education at the University of Illinois. He received his Bachelor degree in the field of Computer Science.
Levchin's greatest contribution to the Internet company has been his intense desire and wide knowledge of secure electronic transactions by using encryption. He is the CTO of Paypal.
Besides being the main payment system for eBay, Paypal also handles a variety of other Internet transactions as well. Once a customer who has an email address (a requirement at Paypal), signs up, they have a choice of acquiring one of three types of accounts.
The Personal Account is for people who need to either send a payment or receive a payment. This account is limited in that the holder can't receive credit card or debit card payments. However, there are no charges associated with this type of account.
The next step up is the Premier Account. This account has the same ability to send or receive monetary payments as the Personal Account does. However, payments can be sent for free. while the company charges a transaction fee for accepting money.
And finally, a Business Account is designed for the online merchant. As a merchant, you can send money for free, but Paypal charges a transaction fee for every payment they process for you.Not everyone is eligible to open a Business Account at Paypal, though. A customer must have a calendar month of sales that reaches a certain level, and they must also fill out an application.
They include easy refunds, dispute arbitration, invoice services, packing slips, a shopping cart, a debit card with a cashback feature, seller protection policy, automatic payments, a shipping calculator, and logos and other tools for the person who sells.
Currently, PayPal operates in 190 markets, and it manages more than 228 million accounts, more than 73 million of them active. PayPal allows customers to send, receive, and hold funds in 19 currencies worldwide
While Paypal has been growing every day, it has also been receiving awards and accolades along the way too. The company has won the Peopleâ€™s Voice Award and the Webby Award for the Best Finance Site. It has also been named one of The Top 100 Web Sites by PC Magazine, one of the Top 25 Companies by Fortune Small Business, and Forbes' Favorite Email Payment Processor, just to name a few of the company's achievements.
At an analyst day on March 11, 2009, eBay CEO, John Donahoe announced that PayPal could be a larger driver of revenue than the eBay marketplaces business. RIM announced that PayPal will be the only payment mechanism for its Blackberry App World, which launched on April 1, 2009.
PayPal launched Student Accounts for teens in August 2009 allowing parents to set up a student account, transfer money into it, and obtain a debit card for student use. The program provides tools to teach teens how to spend money wisely and take responsibility for their actions.
In November 2009 PayPal opened its platform, allowing other services to get access to its code and to use its infrastructure in order to enable peer-to-peer online transactions.
Although PayPal's corporate headquarters are located in San Jose, PayPal's operations center is located near Omaha, Nebraska, where the company employs more than 2,000 people as of 2007.PayPal's European headquarters are in Luxembourg and international headquarters in Singapore. The company also recently opened a technology center in Scottsdale, Arizona, and Chennai, India.
PayPal. The world's most-loved way to pay and be paid.