PayPal: Difference between revisions
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eBay acquired PayPal on October 2002 for $1.5 billion and became its subsidiary. PayPal continued to offer its services to its costumers independently, however eBay decided to discontinue PayPal's online gaming business.eBay's Chief Financial Officer explained that the decision was due to the uncertain legal situations of online gaming. At that time the Congress was on the process of legislating a bill to ban oline gambling.<ref>[http://news.cnet.com/2100-1017-941964.html eBay picks up PayPal for $1.5 billion]</ref> | eBay acquired PayPal on October 2002 for $1.5 billion and became its subsidiary. PayPal continued to offer its services to its costumers independently, however eBay decided to discontinue PayPal's online gaming business.eBay's Chief Financial Officer explained that the decision was due to the uncertain legal situations of online gaming. At that time the Congress was on the process of legislating a bill to ban oline gambling.<ref>[http://news.cnet.com/2100-1017-941964.html eBay picks up PayPal for $1.5 billion]</ref> | ||
==International Expansion== | |||
==References== | ==References== | ||
{{reflist}} | {{reflist}} | ||
Revision as of 22:57, 2 December 2011
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| Type: | Subsidiary of E-bay |
| Industry: | e-Commerce |
| Founded: | 1998 |
| Founder(s): | Ken Howery Max Levchin Elon Musk Luke Nosek Peter Thiel |
| Ownership: | Owned by E-Bay |
| Headquarters: | 2211 North First Street San Jose, CA 95131 |
| Country: | USA |
| Employees: | 618 [1] |
| Revenue: | $3.4 billion as of 2010 [2] |
| Website: | www.paypal.com |
| Blog: | PayPal Blog |
| Facebook: | PayPal |
| LinkedIn: | PayPal |
| Twitter: |  @PayPal
|
| Key People | |
| Scott Thompson, President | |
PayPal is a global payment service provider and a subsidiary of eBay, Inc, one of the leading e-Commerce company based in the United States. PayPal is compose of two other billing services called Payflow Gateway and Bill Me Later. Consumers with PayPal accounts can securely send and receive payments electronically using credit cards and bank accounts. The company is serving more than 103 million accounts within 190 markets and 25 currencies around the world. Its headquarters is located in San Jose California.[3]
History
Max Levchin, an online security specialist and Peter Thiel, a hedge fund manager co-founded PayPal. In 1998, they met at conference at Stanford University where Thiel provided a lecture. Levchin and Thiel agreed to become partners and created the company known as Field Link which produced encyption software for wireless devices such as cellphones and palm pilots. Their idea was to make the handheld devices of consumers as a secure digital wallet. Field Link did not click and the company was re-organized as Confinity. The name of the company was derived from the words confidence and infinity. The company offered money transfer services using palm pilot and other Personal Digital Assistants (PDAs). In 1999, Confinity launched PayPal when its engineer developed a software enabling consumers to pay electronically. [4]
In 2000, PayPal became popular among e-Bay users and offered $10 sign-up bonuses to increase its customer base. During the same year, Confinity merged with its competitor X.com. PayPal was retained as the name of the company. By that time PayPal had already 1 million user accounts.[5]
In February, 2002, PayPal went public and offered 5.4 million shares. Its opening price was $15.41 per share. It was 18 percent higher than the price set by under writers at $13 per share. PayPal enjoyed a 54.5 percent gain at the end of the trading day with its stock price valued at $20.09 per share.[6]
eBay acquired PayPal on October 2002 for $1.5 billion and became its subsidiary. PayPal continued to offer its services to its costumers independently, however eBay decided to discontinue PayPal's online gaming business.eBay's Chief Financial Officer explained that the decision was due to the uncertain legal situations of online gaming. At that time the Congress was on the process of legislating a bill to ban oline gambling.[7]