History of paypal company , which is an American company, operating the online payments of almost every country which support the online money transfer. It also acts as an alternative to the traditional paper method such as money orders and money checking.
PayPal operates as a payment process for money companies, vendors, auction sites and many more commercial users. It charges a small fee in exchange of operations such as password memory and one-click transactions.
The company was established in the year 1998 and has its initial public offering in the year 2002.
The company valued at $1.5 billion and wholly owned subsidiary of eBay later that year but in the year 2015, PayPal was spun off to eBay’s shareholder by eBay. In the year 2019, PayPal was at 204th rank on the 2019 fortune 500 of the biggest United States co-operation by revenue.
History of paypal company,The company, PayPal, was actually established in December 1998 by Max Levchin, Luke Nosak and Peter Thiel as Confinity, which is a company that produce security software for the handheld devices.
The plan did not work and it had no success with that business idea, so it changed its focus towards a digital wallet and in the year 1999, the first version of PayPal electronic payment system was launched.
The company, Confinity merged with X.Com in March 2000, which is an online banking company founded by Elon Musk in January 1999. Elon Musk was really confident about the future success of the money transfer business which Confinity was developing.
Elon Musk and Bill Haris was the president and CEO of X.Com respectively in which Bill Haris disagreed the future thinking of Elon Musk and left the company in May of the year 2000.
Then Musk decide that X.Com will terminate its other internet banking and focus only on PayPal in October of that year and on same month Elon Musk was replaced by Peter Thiel as the CEO of X.Com which changed its name to PayPal in the year 2001 and in 2002 it went public. Initial public offering (IPO) of PayPal was listed under the ticker PYPL at $13 per share and generated more than $61 million.
On October 3, 2002, eBay acquired PayPal just after PayPal’s Initial Public Offering (IPO) for $1.5 billion. Over 70 percent of all eBay auctions accepted the payment of PayPal and roughly 1 in 4 closed auctions were transacted through PayPal.
It became the default payment method and majority of eBay users used it.
The service finalized with eBay’s subsidiary bill point as well as Google checkout, Citibank’s c2it and Yahoo’s PayDirect.
To provide added security, PayPal acquired the VeriSign payment solution in the year 2005 and in 2007, PayPal decleared its partnership with MasterCard.
This enables PayPal to launch the PayPal secure card service which is a software that allows the customers in making payments on websites which do not accept PayPal directly.
The company generated amount of $1.8 billion in revenue by the end of 2007.
Based on the History of paypal company ,PayPal had more than 100 million active user accounts through 25 different currencies in 190 markets.
In the year 2011, fourteen alleged were charged who were the member of the Anonymous hacktivist for attempting to disrupt PayPal’s operations.
In December of the year 2010, the denial of service attacks occurred when PayPal stopped processing donations to Wikileaks and on December 5, 2013, the 13 member out of the PayPal 14 pleaded guilty to felony charges related to the attacks.
On September 30 of year 2014, it was decleared that PayPal would be spin off from eBay into a separate publicly traded company which is a more demanded by the activist hedge fund magnate Carl Icahn and on July 18 of year 2015 the spin off was completed.
The present president and CEO is Dan Schulman and the former eBay John Donahoe is the chairman. eBay announced that after the completion of eBay – PayPal agreement in the year 2020, it will not be prominently featured ahead of credit and debit card options as it is today.
PayPal decleared that it was acquiring digital money transfer company, Xoom Corporation on July 1 of the year 2015 and it spend $25 per share in cash to obtain the publicly traded Xoom, or about almost $1.09 billion.
This step strengthened PayPal’s international trading and also gave it an access to Xoom’s 1.3 million active United States customers who spent about $7 billion in the 12 months ending on 31st March, to people in 37 other countries.
Recently PayPal signed a deal with NBCUniversal. obtained Honey for more than $4 billion on January of the year 2020 and it is PayPal’s larges acquisition up to date.
become the first foreign operator with full control of payment in January, 2021, in China aiming to come in an advanced position as to the online payments.
The year 2019 is the economical year for PayPal. On that year PayPal announced a total earnings 0f US $2.459 billion with an annual profit of US $17.772 billion which is an increase of almost 15% over the previous economical cycle.
In December 2019, PayPal shares increased to a rate of $108 per share and its market capitalization was valued at more than $127.58 billion.
The quarantine and lockdowns for the novel corona virus helped the digital payment platform to grow a lot, including PayPal, at the expanse of the traditional banking sector.
This result in increase of PayPal’s stock up to 78% of year 2020 and in addition the total value has also increased to 29% amounting to $220 billion increasing positive investor sentiment.
The headquarters of PayPal’s corporated are situated in the north San Jose innovation district of San Jose, California, at the north of first street campus.
The operation centre of the company is situated in Omana, Nebraska was opened in the year 1999 which the company has operated across the European union as a Luxembourg based bank since July of the year 2007.
The European headquarters of PayPal’s is present on Luxembourg and the international headquarters is located on Singapore. In 2006, the company, PayPal, opened a technology centre is a Scottesdale, Arizona and in 2007 a software development centre in Chennai, India.
PayPal also opened a data service office on the north side of Austin, Texas in October of year 2007 and a second operation centre in La Vista, Nebraska. In the year 2011, with the same customer support operation situated in Chandler, Arizona; Berlin, Germany; Dublin and Dundalk, Ireland; Shanghai, China; and Omaha, Nebraska; the company opened a second customer support centre in Kuala Lumpur, Malaysia and began the appointing process and PayPal opened a new global centre operation in the year 2014 and in Kuala Lumpur.
The company always focus on launching different marketing activities in various channels and make sure that consumers can use it in different ways.
Its marketing includes Facebook, TV commercials, Outdoor advertising and Display advertisement. The company also gives free analytics to the traders so that they can use to the ways in which consumers untilize online payments. Using online tracking system, PayPal assist traders in targeting consumers.
Its code takes the consumer information which also can be installed on the trader’s website by which PayPal as well as trader gets benefit from the free service.
PayPal got into partnership with Synchrony financial so that it can provide the PayPal cashback offers. This offers 2% cashback to the customers who use the card to make payment for purchasing online as well as in physical stores. The company’s cashback offers promotes the number of potential customers.
Apple company allow PayPal as a mode of payment for iTunes, Apple books, App store and Apple music. PayPal helps in increasing the number of apple users and on return, it receives a revenue from services, especially from app store. You can make purchase using PayPal by linking your PayPal account to your Apple ID.
The company, PayPal, introduced an optional security key so that the security used as a precaution against fraud in early of year2006. The user account will be tied to a security key and has a modified login process.
The account holders will login by entering their login ID.
password as normal but then they will have to enter a 6-digit code provided by a credit card sized hardware security key or a text message will be sent to the account holder’s mobile number.
For satisfaction users may opened the code generated by the hardware key to their password present in the login screen.
In this way they will not be able to go to another page but this method required some services like which using PayPal through the eBay application on iphone devices.
This process makes difficult for the third party access into another’s page without access to the physical security key but it does not prevent the attack known as Man In The Browser (MITB) attack.
If you want to transfer money globally then you must try PayPal. It will make your work easy.
This was the complete History of paypal company
PayPal is an online money payments application,
PayPal is really a safe application and provide you full safety on your money.