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‡ PayPal is an e-commerce business allowing
payments and money transfers to be made
through the Internet.
‡ PayPal is an example of a payment intermediary
service that facilitates worldwide e-commerce.
‡ PayPal performs payment processing for online
vendors, auction sites, and other commercial
users, for which it charges a fee
‡ It sometimes also charges a transaction fee for
receiving money (a percentage of the amount
sent plus an additional fixed amount).
‡ The fees charged depend on the currency used,
the payment option used, the country of the
sender, the country of the recipient, the amount
sent and the recipient's account type.
‡ In addition, eBay purchases made by credit
card through PayPal may incur a "foreign
transaction fee" if the seller is located in another
country,
Beginnings

‡ The current incarnation of PayPal is the result of


a March 2000 merger between Confinity and
X.com.
‡ Confinity was founded in December 1998 by
Max Levchin, Peter Thiel, Luke Nosek, and Ken
Howery, initially as a Palm Pilot payments and
cryptography company.
‡ X.com was founded by Elon Musk in March
1999, initially as an Internet financial services
company.
‡ eBay watched the rise in volume of its online
payments and realized the fit of an online
payment system with online auctions.
‡ eBay purchased Billpoint in May 1999, prior to
the existence of PayPal. eBay made Billpoint its
official payment system,dubbing it "eBay
Payments
‡ eBay cut the functionality of Billpoint by narrowing it to
only payments made for eBay auctions.
‡ PayPal service had an average of approximately
200,000 daily auctions while Billpoint (in beta) had only
4,000 auctions.
‡ By April 2000, more than 1,000,000 auctions promoted
the PayPal service. PayPal was able to turn the corner
and become
‡ the first dot-com to IPO after the September 11 attacks.
Business Today
‡ Currently, PayPal operates in 190 markets, and it
manages over 184 million accounts, more than 73 million
of them active.
‡ PayPal allows customers to send, receive, and hold
funds in 19 currencies worldwide.
Business Today
‡ 42 percent of revenues in q1 2009 were from
international markets
‡ PayPal's Total Payment Volume (TPV), the total value of
transactions in Q1 2009 was nearly $16 billion, up by 10
percent .
‡ In 2008, PayPal's TPV off eBay exceeded volume on
eBay for the first time. PayPal's Total Payment Volume
in 2008 was $60 billion representing nearly 9 percent of
global e-commerce and 15 percent of US e-commerce.
Criticism and limitations:
‡ Several PayPal gripe sites have been created
complaining of frozen accounts and various other
problems.
‡ PayPal has limited functionalities for multi-country users,
most notably the impossibility to have bank accounts in
several countries, or to have a shipping address in a
different country than oneµs bank account / credit card.
Some Features

‡ To block potentially fraudulent access by automated


systems, PayPal used a system (CAPTCHA)
(Completely Automated Public Turing test to tell
Computers and Humans Apart) of making the user enter
numbers from a blurry picture, which they coined the
Gausebeck-Levchin test..
Some Features

‡ PayPal presents anti-Phishing advice on their website for


identifying and reporting phishing. PayPal encourages
consumers to report all phishing emails to them.
Thank you..

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