PayPal American multinational monetary science comy

"PYPL" and "Pay Pal" redirect here. For the method, see Measuring programming language popularity. For The Simpsons episode, see Pay Pal (The Simpsons).

PayPal Holdings, Inc. is an American multinational economic science organisation working an on-line repayments machine in the majority of nations that aid on line cash transfers, and serves as an digital choice to usual paper strategies such as tests and cash orders. The business enterprise operates as a price processor for on-line vendors, public sale websites and many different business users, for which it costs a fee.

 

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eBay, PayPal, Kijiji and StubHub, five hundred King Street West, Toronto, April 2014

Established in 1998 as Confinity, PayPal went public thru an IPO in 2002. It grew to become a thoroughly owned subsidiary of eBay later that year, valued at $1.5 billion. In 2015 eBay spun off PayPal to its shareholders, and PayPal grew to become an unbiased corporation again. The corporation used to be ranked 143rd on the 2022 Fortune five hundred of the greatest United States firms through revenue.

 

History

For a chronological guide, see Timeline of PayPal.

Early history

What would later grow to be PayPal used to be firstly set up via Max Levchin, Peter Thiel, and Luke Nosek in December 1998 as Confinity, a corporation that developed safety software program for hand held devices. Having had no success with that commercial enterprise model, however, it switched its focal point to a digital wallet. The first model of the PayPal digital repayments gadget used to be launched in 1999.

 

In March 2000, Confinity merged with x.com, an on line monetary offerings organization established in March 1999 by way of Elon Musk, Harris Fricker, Christopher Payne, and Ed Ho. Musk was once positive about the future success of the cash switch enterprise Confinity used to be developing. Musk and Bill Harris, then-president and CEO of X.com, disagreed about the possible future success of the cash switch enterprise and Harris left the organisation in May 2000. In October of that year, Musk determined that X.com would terminate its different web banking operations and focal point on payments. That equal month, Elon Musk used to be changed by means of Peter Thiel as CEO of X.com, which used to be renamed PayPal in June 2001 and went public in 2002. PayPal's IPO listed underneath the ticker PYPL at $13 per share and generated over $61 million.

 

eBay subsidiary (2002–2014)

Shortly after PayPal's IPO, the business enterprise was once obtained through eBay on October 3, 2002, for $1.5 billion in eBay stock. More than 70 percentage of all eBay auctions well-known PayPal payments, and roughly 1 in four closed public sale listings have been transacted through PayPal. PayPal grew to be the default charge approach used by way of the majority of eBay users, and the provider competed with eBay's subsidiary Billpoint, as properly as Citibank's c2it, Yahoo!'s PayDirect, and Google Checkout.

 

In 2005, PayPal received the VeriSign charge answer to furnish introduced protection support. In 2007, PayPal introduced a partnership with MasterCard, which led to the improvement and launch of the PayPal Secure Card service, a software program that lets in clients to make repayments on web sites that do now not be given PayPal directly. By the give up of 2007, the corporation generated $1.8 billion in revenue.

 

In January 2008, PayPal received Fraud Sciences, a privately held Israeli start-up that developed on-line threat tools, for $169 million. In November 2008, the organization obtained Bill Me Later, an on line transactional credit score company.

 

By 2010, PayPal had over one hundred million lively person money owed in one hundred ninety markets via 25 distinctive currencies. In July 2011, fourteen alleged individuals of the Anonymous hacktivist team have been charged with trying to disrupt PayPal's operations. The denial of carrier assaults took place in December 2010, after PayPal stopped processing donations to WikiLeaks. On five December 2013, thirteen of the PayPal 14 pleaded responsible to misdemeanor and criminal fees associated to the attacks.

 

The organisation persevered to construct its Merchant Services division, offering e-payments for outlets on eBay. In 2011, PayPal introduced that it would start transferring its commercial enterprise offline so that clients can make repayments by using PayPal in stores.

 

In August 2012, the organisation introduced its partnership with Discover Card to enable PayPal repayments to be made at any of the seven million shops in the Discover network. By the stop of 2012, PayPal's whole price quantity processed used to be US$145 billion. and accounted for 40% of eBay's revenue, amounting to US$1.37 billion in the third quarter of 2012.

 

In 2013, PayPal obtained IronPearl, a Palo Alto startup presenting engagement software, and Braintree, a Chicago-based price gateway, to similarly product improvement and cellular services. In June 2014 David Marcus introduced he was once leaving his position as PayPal President; Marcus joined PayPal in August 2011 after its acquisition of Zong, of which he was once the founder and CEO. David Marcus succeeded Scott Thompson as president, who left the function to be part of Yahoo. PayPal introduced that Marcus would be succeeded by means of Dan Schulman, who earlier served as CEO of Virgin Mobile and Executive vice president of American Express.

 

Spin-off from eBay (2014–present)

It was once introduced on September 30, 2014, that eBay would spin off PayPal into a separate publicly traded company, a cross demanded in 2013 through activist hedge fund magnate Carl Icahn. The spin-off was once performed on July 18, 2015. Dan Schulman is the modern president and CEO, with former eBay CEO John Donahoe serving as chairman. On January 31, 2018, eBay introduced that "After the present eBay-PayPal settlement ends in 2020, PayPal will stay a charge alternative for buyers on eBay, however it might not be prominently featured beforehand of debit and deposit card picks as it is today. PayPal will give up to technique card repayments for eBay at that time." The corporation will "instead start working with Amsterdam-based Adyen".

 

On July 1, 2015, PayPal introduced that it was once obtaining digital cash switch corporation Xoom Corporation. PayPal spent $25 a share in money to collect the publicly traded Xoom, or about $1.09 billion. The deal was once closed in the fourth quarter of 2015. The cross reinforced PayPal’s global business, giving it get admission to to Xoom’s 1.3 million lively U.S. clients that sent about $7 billion in the 12 months ending on March 31, to humans in 37 countries.

 

On September 1, 2015, PayPal launched its peer-to-peer price platform "PayPal.Me", a provider that permits customers to ship a customized hyperlink to request dollars by means of text, email, or different messaging platforms. Custom hyperlinks are set to be structured as PayPal.me/username/amount requested. PayPal.Me was once launched in 18 international locations consisting of the United States, United Kingdom, Germany, Australia, Canada, Russia, Turkey, France, Italy, Spain, Poland, Sweden, Belgium, Norway, Denmark, Netherlands, Austria and Switzerland. PayPal had a hundred and seventy million users, as of September 2015, and the focal point of PayPal.Me was once to create a mobile-first consumer ride that permits quicker charge sharing than PayPal's usual tools.

 

On May 17, 2018, PayPal agreed to buy Swedish charge processor iZettle for $2.2 billion. This used to be PayPal's biggest acquisition till late November 2019 and the enterprise claims that it is the in-store information and digital advertising energy that will complement its personal on line and cellular fee services.

 

On March 19, 2019, PayPal introduced its partnership with Instagram as section of the company's new checkout feature, "Checkout on Instagram".

 

In June 2019, PayPal said that Chief Operating Officer Bill Ready would be leaving the organization at the cease of the year, transitioning into the position of commerce chief for Google.

 

In October 2019, PayPal pronounced a loss of $228 million on investments, mostly due to a failed return from a $500 million funding in Uber.

 

On January 6, 2020, PayPal received Honey for over $4 billion. This is PayPal's greatest acquisition to date, and its most recent. It extra these days signed a deal with NBCUniversal.

 

In June 2020, PayPal introduced a $530 million dedication to aid Black-owned organizations and minority communities in the United States.

 

In January 2021, PayPal grew to become the first overseas operator with one hundred percent manage of a fee platform in China, gaining an superior function in the neighborhood on-line fee market.

 

In an worldwide survey carried out in March 2021 by using Morning Consult, PayPal was once discovered to be the 2nd most relied on manufacturer globally.

 

On October 20, 2021, Bloomberg mentioned that PayPal is involved in obtaining Pinterest, with a attainable fee round $70 a share, there’s no sure bet the talks will lead to an agreement.

 

In June 2022, Shopify partnered with PayPal to provide Shopify Payments to retailers in France.

 

In February 2023, PayPal introduced layoffs for 2,000 of its workers, or 7% of its complete workforce.

 

It used to be stated in February 2023, that CEO Dan Schulman will step away from his function with the aid of the give up of 2023. Schulman will proceed to serve on the board of administrators after vacating the position.

 

Acquisitions

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Finances

The fiscal 12 months for Paypal is from January 1 to December 31. For fiscal 12 months 2019, Paypal stated profits of US$2.459 billion, with an annual income of $17.772 billion, an amplify of 15% over the preceding fiscal cycle. PayPal's shares traded at over $108 per share, and its market capitalization was once valued at over $127.58 billion in December 2019.

 

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The COVID-19 pandemic has accelerated the boom of digital fee platforms, which includes PayPal, at the fee of the standard banking sector. As a result, Paypal has viewed an enlarge in its inventory to up to 78% in 2020 as of October. In addition, complete charge extent has extended 29% amounting to $220 billion growing tremendous investor sentiment.

 

Offices

 

PayPal Operations Center in La Vista, Nebraska

PayPal's company headquarters are positioned in the North San Jose Innovation District of San Jose, California, at North First Street campus. The company's operations core is positioned in La Vista, Nebraska, which used to be opened in 1999. Since July 2007, PayPal has operated throughout the European Union as a Luxembourg-based bank. The PayPal European headquarters are positioned in Luxembourg and the global headquarters are in Singapore. PayPal opened a technological know-how core in Scottsdale, Arizona in 2006, and a software program improvement middle in Chennai, India in 2007. In October 2007, PayPal opened a statistics carrier workplace on the north facet of Austin, Texas, and additionally opened a 2nd operations core in La Vista, Nebraska that identical year. In 2011, becoming a member of comparable patron guide operations placed in Berlin, Germany; Chandler, Arizona; Dublin and Dundalk, Ireland; Omaha, Nebraska; and Shanghai, China; PayPal opened a 2d patron aid core in Kuala Lumpur, Malaysia, and started the hiring process. In 2014, PayPal opened a new international middle of operations in Kuala Lumpur.

 

Services

PayPal's offerings permit human beings to make monetary transactions on line by means of granting the capacity to switch dollars electronically between men and women and businesses. Through PayPal, customers can ship or get hold of repayments for on line auctions on web sites like eBay, buy or promote items and services, or donate cash or acquire donations. It is no longer imperative to have a PayPal account to use the company's services. PayPal account customers can set forex conversion alternative in account settings.

 

The PayPal app is on hand on line or at the iTunes App Store and Google Play. One yr after obtaining Braintree, PayPal added its "One Touch" service, which approves customers to pay with a one-touch alternative on collaborating retailers web sites or apps.

 

In 2007, PayPal obtained the on-line savings product Bill Me Later, Inc., which has in view that been rebranded as PayPal Credit and supplied offerings for Comenity Capital Bank, the lender of PayPal Credit accounts. Founded in 2000, Bill Me Later is headquartered in Timonium, Maryland. PayPal Credit gives consumers get admission to to an on the spot on line revolving line of deposit at hundreds of carriers that receive PayPal, concern to deposit approval. PayPal Credit approves customers to store on line in lots the equal way as they would with a ordinary credit score card. The rebranding of Bill Me Later as PayPal Credit additionally potential that shoppers can use PayPal Credit to fund transactions definitely somewhere PayPal is accepted. In 2015 PayPal agreed that PayPal Credit would pay a $25 million nice to settle a grievance filed in Federal Court by using the Consumer Financial Protection Bureau.

 

From 2009 to 2016, PayPal operated Student Accounts, permitting dad and mom to set up a scholar account, switch cash into it, and acquire a debit card for scholar use. The application supplied equipment to educate how to spend cash wisely and take accountability for actions. PayPal discontinued Student Accounts in August 2016.

 

In November 2009, PayPal partly opened its platform, permitting different offerings to get get right of entry to to extra APIs and to use its infrastructure in order to allow peer-to-peer on line transactions.

 

On November 28, 2011, PayPal stated Black Friday introduced file cell engagement, along with a 538% expand in international cellular fee extent when in contrast with Black Friday 2010.

 

In 2012, the organization launched "PayPal Here", a small enterprise cell fee device that consists of a mixture of a free cellular app and a small card-reader that plugs into a clever phone.

 

PayPal launched an up to date app for iOS and Android in 2013 that improved its cell app skills through permitting customers to search for nearby retail outlets and eating places that take delivery of PayPal payments, order beforehand at taking part venues, and get right of entry to their PayPal Credit money owed (formerly recognized as Bill Me Later).

 

On October 21, 2020, PayPal introduced a new provider permitting clients to use cryptocurrencies to keep at 26 million retailers on the community beginning in 2021. Paypal has been the use of Paxos Trust to grant the returned give up infrastructure permitting customers to manipulate and change cryptocurrencies in accordance to records privacy policies and monetary regulations. Paxos has been in cost of obtaining the indispensable regulatory approvals for Paypal to facilitate cryptocurrency assets. As phase of the announcement, PayPal secured the first conditional cryptocurrency license from the New York State Department of Financial Services, which will permit clients to buy cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. In March 2022, PayPal delivered a flat-fee shape for cryptocurrency transactions below $200; transactions over $200 incur a 1.8% rate for purchases or income up to $1,000, and 1.5% for any transaction quantity higher than $1,000.

 

As of 2022, PayPal operates in 202 markets and has 426 million active, registered accounts. PayPal approves clients to send, receive, and maintain cash in 25 currencies worldwide.

 

Business mannequin evolution

PayPal's success in customers and volumes was once the product of a three-phase method described by way of former eBay CEO Meg Whitman: "First, PayPal centered on increasing its provider amongst eBay customers in the US. Second, we commenced increasing PayPal to eBay's worldwide sites. And third, we started out to construct PayPal's commercial enterprise off eBay."

 

Phase 1

In the first phase, price volumes had been coming normally from the eBay public sale website. The machine used to be very appealing to public sale sellers, most of which had been persons or small corporations that had been unable to take delivery of deposit cards, and for buyers as well. In fact, many agents may want to now not qualify for a deposit card Merchant account due to the fact they lacked a business savings history. The carrier additionally appealed to public sale customers due to the fact they ought to fund PayPal bills the use of credit score playing cards or financial institution account balances, besides divulging savings card numbers to unknown sellers. PayPal employed an aggressive advertising and marketing marketing campaign to speed up its growth, depositing $10 in new users' PayPal accounts.

 

Phase 2

Until 2000, PayPal's method was once to earn activity on money in PayPal accounts. However, most recipients of PayPal credit withdrew cash immediately. Also, many senders funded their repayments the use of deposit cards, which price PayPal roughly 2% of charge fee per transaction.[citation needed]

 

To clear up this problem, PayPal tailor-made its product to cater extra to commercial enterprise accounts. Instead of relying on pursuits earned from deposited funds, PayPal commenced relying on salary from carrier charges. They presented vendor safety to PayPal account holders, supplied that they comply with repayment policies. For example, PayPal retailers are both required to preserve a traceable proof of delivery to a verified tackle or to furnish a signed receipt for objects valued over $750.[citation needed]

 

Phase 3

After fine-tuning PayPal's commercial enterprise mannequin and growing its home and international penetration on eBay, PayPal started out its off-eBay strategy. This was once based totally on growing improved boom in active customers with the aid of including users throughout a couple of platforms, notwithstanding the slowdown in on-eBay boom and low-single-digit consumer boom on the eBay site. A late 2003 reorganization created a new enterprise unit inside PayPal—Merchant Services—to grant charge options to small and giant e-commerce retailers backyard the eBay public sale community. Starting in the 2nd half of of 2004, PayPal Merchant Services unveiled various initiatives to join on line retailers backyard the eBay public sale community, including:

 

Lowering its transaction rate for high-volume retailers from 2.2% to 1.9% (while growing the month-to-month transaction extent required to qualify for the lowest price to $100,000)

Encouraging its customers to recruit non-eBay retailers by way of growing its referral bonus to a most of $1,000 (versus the preceding $100 cap)

Persuading savings card gateway providers, such as CyberSource and Retail Decisions USA, to consist of PayPal amongst their choices to on line merchants.

Hiring a new income pressure to collect massive retailers such as Dell, Apple's iTunes, and Yahoo! Stores, which hosted lots of on-line merchants

Reducing costs for on-line tune purchases and different "micropayments"

Launching PayPal Mobile, which allowed customers to make repayments the use of textual content messaging on their mobile phones

Global reach

PayPal can be used in extra than 2 hundred countries/regions.

 

Different nations have extraordinary conditions: Send solely (Package Service approves sending only, legitimate in ninety seven countries), PayPal Zero (package suggests the opportunity of enrollment, entry, and withdrawal of cash in overseas currency, however the person can now not keep the stability PayPal account, operates in 18 countries), SRW Send – Receive – Withdrawal (the opportunity of enrollment, input-output and the capability to hold your PayPal account stability in the forex and to switch to the card when the consumer sees fit, operates in forty one countries) and Local Currency (SRW plus chance to habits transactions in the neighborhood currency, 21 countries).

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