PayPal - Empowers Digitalization with its Secured Online Payments!

Himaya Presthitha Himaya Presthitha
Feb 5, 2021 5 min read
PayPal - Empowers Digitalization with its Secured Online Payments!

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Transaction is the heart of the developing business world. It revolutionizes the global economy with its circulatory nature. Safety and Reliability are the main factors that define what the best transaction is, and thus it describes the company PayPal evidently.

PayPal is a company based in the United States, which provides online money transaction services. PayPal is gonna shut down its Domestic Business in India effective from April 1, 2021 to focus on International Sales.

Let's go through the Amazing Journey of PayPal, which increased its Active New Accounts by 95% in 2020. Along with get a glance on PayPal Business Model, Founders, Revenue, Growth, Competitors and more..

PayPal โ€“ Company Highlights

Startup Name PayPal
Headquarters California,United States
Sector E-Commerce
Founders Ken Howery, Peter Thiel, Max Levchin, Luke Nosek
CEO & President Dan Schulman
Founded December 1998
Revenue $21.45 billion (FY20)
Parent Organization PayPal Payments Private Limited

PayPal - Latest News
PayPal - About
PayPal - Founders and Team
PayPal - Vision and Mission
PayPal - Name, Tagline, and Logo
PayPal - Growth and Revenue
PayPal - Business and Revenue Model
PayPal - Competitors
PayPal - Achievements
PayPal - Future Plans

PayPal - Latest News

February 5, 2021 - PayPal Holdings Inc will shut down its domestic payments business in India from April 1, 2021.

"From 1 April 2021, we will focus all our attention on ย enabling more international sales for Indian businesses, and shift focus away from our domestic products in India" PayPal said in a Statement.

PayPal - About

PayPal was established as โ€˜Confinityโ€™ in December 1998 by Max Levchin, Peter Thiel, and Luke Nosek. The company functions as a payment processor in many e-commerce sites, and auction sites. PayPalโ€™s first electronic payment was launched in 1999. Being as the PayPal platform, Braintree, Venmo, and Xoom enables the users in flexible transactions with different currencies. The company was acquired by eBay in 2002 and got separated in 2015. PayPal India Development Center is located in Chennai.

PayPal 2020

PayPal - Founders and Team

PayPal was founded in 1999 by Max Levchin, Peter Thiel, and Luke Nosek.

Dan Schulman is the President and CEO of PayPal. He did his Bachelorโ€™s from Middlebury College and an MBA from New York University Stern School of Business. He was the former president of Sprintโ€™s Prepaid Group and he was also the CEO of Virgin Mobile. He now works towards democratizing the financial services of the billions of people.
The core team of PayPal are as follows

  • Mark Britto - EVP, Chief Product Officer
  • John Rainer - CFO and EVP, Global Customer Operations
  • Louise Pentland - EVP, Chief Business Affairs and Legal Officer
  • Jonathan Auerbach - EVP, Chief Strategy, Growth and Data Officer
  • Peggy Alford - EVP, Global Sales
  • Aaron Karczmer - Chief Risk Officer and EVP, Risk and Platforms
  • Sri Shivananda - SVP, Chief Technology Officer
  • Franz Paasche - SVP, Corporate Affairs
  • Gabrielle Rabinovitch - VP, Investor Relations

PayPal - Vision and Mission

PayPalโ€™s vision is to democratize financial services and empower people and businesses to prosper in the global economy.

Paytm or PhonePe : Which One Is Better?
When ATM revolutionized the way we exchange and handle money, would you believethat with the advent of digital wallets you will be able to do your transactionswithout cash or card in our pockets. Digital wallet or UPI (United PaymentsInterface) was launched in 2015 by the state owned National payโ€ฆ

โ€˜Paying your Palโ€™ is the focus of the company, which gave rise to the name โ€˜PayPalโ€™. โ€˜Because you have toโ€™ and โ€˜Safe Haiโ€™ are the taglines that PayPal used before.

PayPal - Logo

PayPal - Growth and Revenue

In FY20, PayPal recorded revenue of $21.45 billion & TPV of $936 billion,

PayPal currently has 305 million active users with more than 200 markets around the world. In Q4 of FY19, the companyโ€™s revenue grew 17% to $4.96 Billion. A total of $200 Billion of TPV was processed only in Q4 and engagement grew 10% to 40.6 transactions per active account. 9.3 million new accounts were added during the fourth quarter of 2019.

PayPal - Funding and Investors

PayPal has raised a total of $216M over six different funding rounds.

Date Stage Amount Investors
January 1999 Seed Round Undisclosed -
July 1999 Series A $3M BlueRun Ventures
January 2000 Series B $23M Clearstone Venture Partners, Goldman Sachs
April 2000 Series C $100M Madison Dearborn Partners
February 2001 Series D $90M -
September 2015 Secondary Market Undisclosed -

Best Indian Payment Gateways in 2020 | Payment Gateways for Business
A payment gateway is a merchant service that connects the usersโ€™ bank accountwith the platform where the users need to transfer their money. A bank mayprovide payment gateway to its customers, there is also a specialized financialservice provider such as payment service provider which provides paโ€ฆ

PayPal - Business and Revenue Model

PayPal charges its customers and merchants with net transaction fees which are based on Total Payments Volume. It also makes money through other value-added services such as from interest and fees earned on loans.

PayPal - Competitors

Google Wallet, Skrill, Wepay, and 2checkout are some of the biggest competitors of PayPal.

PayPal - Achievements

PayPal has been named one of the top companies JUST Capital and Forbesโ€™ JUST 100 List. The company has also been recognized as a Fortune Change the World company for its resilience in tackling the challenges.

The Rise Of Digital Contactless Payments Post Pandemic.
The fast spread of the novel coronavirus has led to a global lockdown hithertounfathomed. The on-going situation has now become one of the biggest threats toeconomies and financial markets all over the world, and is leading us towards aglobal recession. The spread of the coronavirus has impacted โ€ฆ

PayPal - Future Plans

PayPal plans a multi-featured mobile app which garners in-store shopping with personalized marketing features.

โ€œThis initiative could see it introduce a digital wallet for physical stores and utilize NFC and QR code technology to enable in-store payments, and follows it removing the ability to make in-store payments via its mobile app in March 2018โ€, said Dan Schulman, CEO of PayPal.

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