PayPal
 | |
| 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]
International Expansion
In 2004, PayPal was introduced as payment option for eBay consumers in United Kingdom. Following in 2005, PayPal opened its first office in China and introduced its website under the simplified Chinese Name BeiBao 贝宝在中国推出。. By 2006, the company expanded in 103 markets and started accepting payments in different currencies.By 2007, PayPal introduced the VISA debit or credit card as a new method to withdraw money for users in 23 countries. PayPal users in the Philippines, Indonesia and India are able to withdraw their money through their local bank account. In 2008, the company have been operating different sites in Asia using 8 different languages. At present, PayPal has 153 million accounts within 173 countries and accepting transactions in 24 currencies around the world.[8]
Leadership
- Scott Thompson, President
- Ranjana Clark, Senior Vice President, Chief Customer & Marketing Officer
- Patrick Dupuis, Chief Financial Officer
- Ed Eger, Senior Vice President and General Manager of North America, Core Payments and Emerging Markets
- Rupert Keeley, Senior Vice President of Asia Pacific
- Mark Lavelle, Vice President of Strategy and Business Development
- Renier Lemmens, Vice President of PayPal Europe
- David Marcus, Vice President of Mobile
- Gary Marino, Senior Vice President of Credit Products & Risk
- John McCabe, Senior Vice President of Worldwide Operations
- Dianne Mills, Senior Vice President of Human Resources
- John D. Muller, Vice President of Legal, General Counsel
- Leonard Shen, Chief Compliance Officer
- Sam Shrauger, Vice President of Global Product and Experience