PayPal’s Business Model by Slide share



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PayPal is the world’s most popular and frequently used digital payment network, with over 100 million operational identities in 25 international exchange rates. The components of this business were established in 1998 as Confinity. Company purchased the business in 2000, and its digital financial method was initially launched in 1999. PayPal rebranded Confinity, and the company had an official launch (IPO) just on NASDAQ in 2001. eBay bought PayPal worth US$1.5 billion in 2002 after its inability to settle all its digital money transfer work. The main office is found in San Jose, California. However, it has other offices in Asia and Europe.

Paypal’s growth took place in progressive phases. The very first phase took place between 1999 and 2000. During this time, most of PayPal’s earnings came from eBay buyers looking for a fast and convenient method to settle. PayPal launched an intensive advertising strategy in response to slow economic growth, putting $10 in new customers’ pay pal’s Digital wallets as well as an additional $10 for every new customer they attracted.

From 2000 to 2002, the second phase took place. The advertising strategy was inherently untenable at this era; therefore, PayPal considered reducing processing fees to nil in the hopes of earning income on users’ floats, but this tactic backfired since users quickly fell back their floats. Paypal also absorbed a more significant portion of the costs of arbitration and forgery. eBay purchasers who used PayPal gained up to $1,000 in fraudulent charges, and E sellers received extra charge-back coverage.

From the year 2000, the third phase began. PayPal shifted its focus after being acquired by eBay to the non-eBay market by cutting trading costs for high-volume customers. They successfully convinced direct debit processing operators to accept PayPal and slashed rates for music streaming transactions and micromanagement.’ Non-eBay entrepreneurs who were recruited received a higher bonus (up to US$1000, up from the prior US$100 ceiling). Payments were also made using text messaging on mobile phones and cloud technology.

PayPal’s SWOT analysis reveals that the business faces some strengths, limitations, potential, and challenges. It has some advantages, including low trading costs instead of other Online Payment Systems. It is effortless to use because internet retailers do not require an Online Payment Processor, which can be costly to obtain. One of its flaws is that it has been the focus of numerous scams. This is a concern that PayPal faces; PayPal’s detection of fraud can be harsh, blocking transactions for lengthy stretches of time. Despite these threats, Pay Pal has the potential to reach a wider audience and thrive beyond the United States, particularly in Asia.

The sender and the recipient can use PayPal’s encrypted wallet technology to conduct financial transactions. All of them should create a PayPal account and submit information about commercial, card payments, or banking information that will be used if there are limited funds in the PayPal wallet (‘float’) to process transactions. The account is accessed using an email id and a login. PayPal is a remarkable digital bright spot and a prime illustration of first-mover advantage. Despite fierce competition and a slew of articles criticizing PayPal’s policies, the firm’s statement total income flow has consistently increased, notably from eBay orders, which accounted for 51% of gross sales in 2008.



Anghel Oleg. (2008) PayPal’s Business Model by Slide share; Slide show in English and Italian. 

Geoffrey Fowler, Russell Adams. (October 2011)  Digital goods; PayPal unveils a payment system aimed at digital goods. 

Kenneth C. Laudon and Carol Guercio (2010). Ecommerce Pearson

Steve Henn. . (June 2012). In The Cloud But Still Tethered To Fees Your New Digital Wallet.



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