PayPal

The Foundation

The company PayPal as we know it today goes back to the merger of the companies Confinity and X.com in March 2000. With PayPal being the most popular payment method for more than half of eBay users, the company was eventually bought by eBay in October 2002. On July 2, 2007, PayPal received a banking license for Europe from the Luxembourg Banking Authority and has been a bank ever since.

The business model

PayPal is an online payment system that can be used for buying and selling online. With around 143 million member accounts in 106 nations, PayPal is the world`s largest online payment service provider. PayPal`s goal is to make payments as easy as possible. PayPal members can send money to anyone in supported countries as long as they have an email address. Participant information is protected with SSL encryption for every transfer.

There are four ways to send money to another participant with PayPal:

• It is possible to send money directly from the PayPal credit account.
• Credit card can be used for payment.
• Payments can be made via direct debit.
• Payments by bank transfer.

Countries where PayPal can be used: