PayPal Holdings, Inc. is an American company that operates a worldwide online payments system, which permits online money transfers and consequently serves as an electronic alternative to the traditional paper payment methods such as cheques and money orders. PayPal is almost the world's most popular Internet payment company.The company acts as a kind of payment processor for online vendors, auction websites and other commercial users, a service it renders for a fee.
The company Paypal was founded in December 1998 as Confinity, a company that developes security software for handheld devices, founded by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery. PayPal was however later developed and launched as a money transfer service at Confinity in 1999, funded by John Malloy from BlueRun Ventures. It had its IPO in the year 2002, and later that year, became a wholly owned subsidiary of eBay.
In 2014, eBay announced plans to make PayPal stand alone as an independent company by mid-2015, a plan that was eventually completed on July 18, 2015. On July 20, 2015, PayPal had the second IPO that valued the company at $46.6 billion.
Can Nigerians Use Paypal?
Nigerian Biography has been receiving questions from Nigerians who wants to know whether PayPal is available for Nigerians.
For quite a number of years, PayPal had basically shut-out Nigeria due to Internet-related fraud. However, as fraud detection technnology improved, coupled with Nigeria's assumption as the largest economy in Africa during the regime of former president Goodluch Jonathan PayPal lifted their restrictions on Nigeria. Today, a Nigerian can owe a PayPal account and the process is quite simple and can be done in two ways:
1. Sign-Up With PayPal website.
1. Sign-Up With PayPal website.
First thing you do is to go to www.paypal.com/ng, Click on signup, select personal or business. Personal, if the purpose is to use your personal debit card and business if you want to use your company's debit card assuming you have one.
After selecting, click continue, at this point you will see “Nigeria” in the drop down menu, your email address and password. Fill in your email address. Then type in your password and make sure it is one you can remember Go to the next page and type other details such as names, date of birth, address and phone number.
Note tha when filling in your address, make sure that it matches the same address details you filled when you opened a bank account It takes you to a page where you fill in your debit card details. There, fill in your card number, expiry date and the last three digits behind your debit card.
Go to your email account and click on verify, Your account is created.
2. Using a wallet
This option is offered by First Bank through an exclusive arrangement they have with PayPal.
If you choose this option, simply login into your Internet banking account using your password and token if you are already a first bank customer. Choose the option, “PayPal wallet” in the main tab and click “create PayPal wallet”. On the drop down menu, choose which of your cards you wish to link to your PayPal account and also, which of them want to be the default card.
Having done that, use your online token button to confirm accordingly. Create your password in the pop up window that appears, check the “agree and create account” box. Go to your registered email account with the bank and confirmthat you have created a PayPal account
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In March 2000, Confinity merged with X.com, an online banking company founded by Elon Musk. Musk was optimistic about the future success of the money transfer business Confinity was developing. Musk and then-president and CEO of X.com, Bill Harris, disagreed on this point and Harris left the company in May 2000. In October of that year, Musk made the decision that X.com would terminate its other Internet banking operations and focus on the PayPal money service. The X.com company was then renamed PayPal in 2001, and expanded rapidly throughout the year until company executives decided to take PayPal public in 2002. Paypal's IPO listed under the ticker PYPL at $13 per share and ended up generating over $61 million.
eBay subsidiary (2002–2014)
Shortly after PayPal's IPO, the company was acquired by eBay in July 2002 for $1.5 billion. More than 70 percent of all eBay auctions accepted PayPal payments, and roughly 1 in 4 closed auction listings were transacted via PayPal. PayPal became the payment method used by a majority of eBay users (it was also the default choice), and the service competed with eBay's subsidiary Billpoint, as well as Citibank's c2it, Yahoo!'s PayDirect, Google Checkout and Western Union's BidPay service, all of which closed in subsequent years.
PayPal acquired the VeriSign payment solution in 2005 to expand its e-commerce business and provide added security support. In 2007, PayPal announced a partnership with MasterCard that led to the development and launch of the PayPal Secure Card service, a software that allows customers to make payments on websites that do not accept PayPal directly by generating a unique, single-use MasterCard number for each checkout. By the end of 2007, the company generated $1.8 billion in revenue.
In January 2008, PayPal acquired Fraud Sciences, a privately held Israeli start-up company with expertise in online risk tools, for $169 million, in order to enhance PayPal's proprietary fraud management systems. In November 2008, the company acquired Bill Me Later, an online payments company offering transactional credit at over 9000 online merchants in the US. PayPal revenues for Q1 2009 were $643 million, up 11 percent year over year. 42 percent of revenues in Q1 2009 were from international markets. PayPal's Total Payment Volume (TPV), the total value of transactions in Q1 2009 was nearly $16 billion, up 10 percent year over year.
By 2010, PayPal had over 100 million active user accounts in 190 markets through 25 different currencies. In July 2011, fourteen alleged members of the Anonymous hacktivist group were charged with attempting to disrupt PayPal's operations. The denial of service attacks occurred in December 2010, after PayPal stopped processing donations to Wikileaks. On December 5, 2013, 13 of the PayPal 14 pleaded guilty to misdemeanor and felony charges related to the attacks.
The company continued to focus on international growth and growth of its Merchant Services division, providing e-payments for retailers on eBay. In 2011, PayPal announced that it would begin moving its business offline so that customers can make payments via PayPal in stores. In August 2012, the company announced its partnership with Discover Card to allow PayPal payments to be made at any of the 7 million stores in Discover Card's network. By the end of 2012, PayPal's total payment volume processed was US$145,000,000,000. and accounted for 40% of eBay's revenue, amounting to US$1,370,000,000 in the 3rd quarter of 2012.
In 2013, PayPal acquired IronPearl, a Palo Alto startup offering engagement software,[41
As of 2016, PayPal operates in 202 markets and has 188 million active, registered accounts. PayPal allows customers to send, receive and hold funds in 25 currencies worldwide.
PayPal's services allow people to make financial transactions online by granting the ability to transfer funds electronically between individuals and businesses. Through PayPal, users can send or receive payments for online auctions on websites like eBay, purchase or sell goods and services, or donate money or receive donations. It is not necessary to have a PayPal account to use the company's services. PayPal account users can set currency conversion option in account settings, instructions.
From 2009 to 2016, PayPal operated Student Accounts, allowing parents to set up a student account, transfer money into it and obtain a debit card for student use. The program provides tools to teach how to spend money wisely and take responsibility for actions. PayPal discontinued Student Accounts in August 2016.
In November 2009, PayPal opened its platform, allowing other services to get access to its code and to use its infrastructure in order to enable peer-to-peer online transactions.
In 2008, PayPal acquired the online credit product Bill Me Later, Inc. which has since been rebranded as PayPal Credit, and provides services for Comenity Capital Bank, the lender of PayPal Credit accounts. Founded in 2000, Bill Me Later is headquartered in Timonium, Maryland, with additional offices in Hunt Valley, Maryland, Chandler, Arizona and San Francisco, California. PayPal Credit offers shoppers access to an instant online revolving line of credit at thousands of vendors that accept PayPal, subject to credit approval. PayPal Credit allows consumers to shop online in much the same way as they would with a traditional credit card. The rebranding of Bill Me Later as PayPal Credit also means that consumers can use PayPal Credit to fund transactions virtually anywhere PayPal is accepted. In 2015 PayPal agreed that PayPal Credit would pay a $25 million fine to settle a complaint filed in Federal Court by the Consumer Financial Protection Bureau.
The PayPal app is available online or at the iTunes App Store and Google Play. One year after acquiring Braintree, PayPal introduced its "One Touch" service, which allows users to pay with a one-touch option on participating merchants websites or apps.
On November 28, 2011, PayPal reported Black Friday brought record mobile engagement including a 538% increase in global mobile payment volume when compared with Black Friday 2010.
In 2012, the company launched "PayPal Here," a small business mobile payment system that includes a combination of a free mobile app and a small card-reader that plugs into a smart phone.
PayPal launched an updated app for iOS and Android in 2013 that expanded its mobile app capabilities by allowing users to search for local shops and restaurants that accept PayPal payments, order ahead at participating venues, and access their PayPal Credit accounts (formerly known as Bill Me Later).
Business model evolution
PayPal's success in users and volumes was the product of a three-phase strategy described by former eBay CEO Meg Whitman: "First, PayPal focused on expanding its service among eBay users in the US. Second, we began expanding PayPal to eBay's international sites. And third, we started to build PayPal's business off eBay."
In the first phase, payment volumes were coming mostly from the eBay auction website. The system was very attractive to auction sellers, most of which were individuals or small businesses that were unable to accept credit cards, and for consumers as well. In fact, many sellers could not qualify for a credit card Merchant account because they lacked a commercial credit history. The service also appealed to auction buyers because they could fund PayPal accounts using credit cards or bank account balances, without divulging credit card numbers to unknown sellers. PayPal employed an aggressive marketing campaign to accelerate its growth, depositing $10 in new users' PayPal accounts.
Until 2000, PayPal's strategy was to earn interest on funds in PayPal accounts. However, most recipients of PayPal credits withdrew funds immediately. Also, a large majority of senders funded their payments using credit cards, which cost PayPal roughly 2% of payment value per transaction.
To solve this problem, PayPal tailored its product to cater more to business accounts. Instead of relying on interests earned from deposited funds, PayPal started relying on earnings from service charges. They offered seller protection to PayPal account holders, provided that they comply with reimbursement policies. For example, PayPal merchants are either required to retain a traceable proof of shipping to a confirmed address or to provide a signed receipt for items valued over $750.
After fine-tuning PayPal'