PayPal is an online business in which money transaction take place through internet. It facilitates clients for online money transaction and frees them from traditional paper work for this purpose. It was founded in March 2000 as the result of fusion between Confinity and X.com. Confinity and X.com has launched their services in late 1999. Confinity was established for cryptography and Palm Pilot Payments. However X.com was established for online financial transactions.
PayPal is registered in many countries. The European headquarter is located at Luxembourg. The international headquarter of PayPal is residing in Singapore at San Jose. It has over 2,000 employees since 2007. PayPal has many other hubs at Arizona, India and Scottsdale. PayPal has to go through many competitors throughout its career. It was bought by eBay on 2002. They have paid US$1.5billion for the deal.
Huge numbers of eBay clients had been requested by PayPal for money transaction. This service was competed by other services like Billpoint, c2it by Citibank which were seized by 2003. One more service was clogged in late 2004 that was Yahoo’s PayDirect. Then Western Union showed up in 2005 but later on their service BidPay was bought by CyberSource. Then again BidPay was stopped in late 2007. However few competitors like Moneybookers, WireMap, and Google checkout are still in business and offering competition to PayPal. Regardless of this face that still every site of eBay require PayPal for money transaction especially in Britain and Australia.
PayPal was enhanced by eBay as they have bought the software of “Fraud Sciences” in 2008. Fraud Sciences is an Israeli company privately run by experts to improve security issues in Internet. They have improved PayPal with their specialized security tools for the amount of US$ 169 Million. The main objective of this deal was to develop efficient management system and to improve the security issues regarding frauds.
The growth rate in services of PayPal has determined to be very high. As it is shown by statistics that in 2008 the transaction through PayPal has increased up to 27% from last year and in 2009 it was about 19% that was US$ 71Billion. PayPal is focus to expand throughout the world and especially for it services like Merchant services that provide transaction for eBay merchants. PayPal is currently working in 194 markets around the world with account of 232 million. PayPal deals in about 24 currencies like US Dollar, Euro, and Pounds etc.
PayPal has also initiate student accounts in which parents can transact money for their children.