History Of Paypal

PayPal Inc. is a company in a network that provides money transfer services through electronic mail, replacing the old method that still use paper, such as checks and money orders. PayPal also provides services to the owners of e-commerce sites, auction, and other business types. Corporate headquarters is located in San Jose, California, United States.

Early establishment

PayPal Corp. is actually a result of a merger between companies with X.com Confinity conducted in 2000. Confinity was established in December 1998 by Peter Thiel and Max Levchin with the original purpose as a corporate intermediary payment service provider of Palm Pilot and cryptography. The X.com was founded by Elon Musk in March 1999 as a provider of financial planning services. Headquarters of both companies originally located at 165 University Avenue, Palo Alto, California, United States.

Acquisition by ebay

Seeing the promising future of PayPal, eBay's PayPal concluded suitable for use as their online auction payment intermediaries. Previously, ebay has bought Billpoint in May 1999 and became the sole intermediary payment approved by eBay, although the option to use other payment methods are still allowed. In February 2000, on average there are around 200,000 per day of supply that uses PayPal, while the use Billpoint bidding only reached 4000 only. Even in April 2000, there were already more than one million bids using PayPal.

Finally, in 2002, eBay acquired PayPal for $ 1.5 billion. ebay later remove services Billpoint payment through PayPal to enhance potency. Many of the major competitors of PayPal which eventually went bankrupt or sold, such as Citibank C2IT which closed in late 2003, Yahoo! PayDirect which closed in late 2004, and Western Union's BidPay service which closed in 2005. Another PayPal competitor who still survive until now, among others, AlertPay, Liberty Reserve, Kagi, and Moneybookers.

In the first quarter of 2006, total transactions made through PayPal to reach USD 8 billion, up 41% from year to year.

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