SUCCESSFUL E-BUSINESS SYSTEMS - PAYPAL
ABSTRACT
PayPal is an account-based system that allows anyone with an email address to send and receive online payments. This service is easy
to use for customers. Members can instantaneously send money to anyone. Recipients are informed by email that they have received a
payment. PayPal is also available to people in 38 countries. This paper starts with introduction to the company and its services. The
information about the history and the current company situation are covered. Later some interesting and different technical issues are
discussed. The Paper ends with analysis of the company and several future recommendations.
KEYWORDS
PayPal, Payment Systems, E-business, Money Transactions, PayPal Analyses.
TABLE OF CONTENTS
1. Introduction
2. PayPal as e-Business
3. Technical Issues
4. Analysis (of PayPal as e-Business)
5. Conclusion
6. References
1. INTRODUCTION
1.1 - PayPal –A Popular Company
This paper is about a company called PayPal. First I will touch the general information about the company, then provide
information about several details and finish with several useful future recommendations.
PayPal (formerly X.com) that was founded in 1998 belongs to an Electronic Payment Systems, more precisely to
Generic Systems subgroup. It is located in San Jose and carries out services that provide the possibility of sending and
receiving money by means of computers in an easy, secure and fast way using an account-based system. This can be
done by anyone (a private person or legal entity) who has an email address. When the money is transferred, a message is
sent to the recipient’s email address notifying about the transaction. At the same time certain security measures are taken
during these operations. One can still charge his or her account without having an electronic card, using the bank
transfer or a paycheck. Transferring money is as easy as sending an email for customers.
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(Fig.1, What is PayPal, retrieved on February 15
th
, 2004 From: PayPal Developer Conference Keynote, Alex Kazim, VP Marketing,
05/08/03. Data available on http://paypaldev.org/ )
In 2002, PayPal was acquired by eBay. It has quickly become popular. Today the company offers services in thirty-eight
countries and has about forty million customers for today. In most of these countries it supports bank withdrawal service
and is especially popular among eBay customers. Fig.1 briefly illustrates Company’s business. The system enables its
users to send money, using computers. The same can be done by means of mobile phones that are support Web.
In terms of PayPal’s corporate level strategies, they have focussed on innovation where they are trying to bring new system and feature into their existing technology or product. The process is to cope up with the growing number competitions such as Apple Pay, Google Wallet and other financial institutions and providers. According to Keith Bossey PayPal was the only alternative web and mobile based payment processing provider among a field of 35 competitors to earn ‘Star’ status in their brand equity. They are the only brand used by a majority (53%) of micro to small medium sizes business and private enterprise owners around the world (Fallon, 2014). PayPal’s another corporate strategies was to connects with financial institutions around the world and allows customers to collects payments using a wide range of payment method such as Visa Credit, Online banking etc. It happens regardless of where the business and seller is being located. Despite the split from their parent company eBay in 2015. They have embarked their payment system journey through strategic acquisitions and growth in their strategies (Nunez Enterprises, 2015). At the same time their innovation and emphasis leads one of the profitable business and trying to do their best to serve consumer their services. The report show that they continue to expend their operations covering all seven continents and trying to reach as many consumers as possible to enable easy and faster payment system. According to CEO Dan Schulman PayPal will be providing “full service” to their
1. What is the difference between a. and a. DEFINING PAYPAL 1.1 About PayPal PayPal was launched in 1998 as an online transaction method where users can pay and receive money online. It’s located in San Jose, California and eBay acquired it in 2002. Users can pick their preferred payment methods such as credit cards, bank accounts, PayPal balance, PayPal plus credit cards and PayPal buyer accounts to do their transactions without revealing their financial information. It has a user base larger than 152 million globally and is available in 24 currencies and 203 markets across the world [source: PayPal].
A great opportunity for Amazon to advance its business would be to create a similar payment system. Currently, Amazon does have its own system called “Amazon Payments”, however this system requires for one to use their bank account information. On the other hand, PayPal is much more advanced, and does not require a bank account. All it requires is a debit or credit card, and it also offers its own “PayPal Smart Connect” online credit card. EBay has witnessed a majority of its success from this payment system. There are thousands of online retailers who currently accept PayPal as a valid method of payment, which increases eBay’s revenue. If Amazon were to introduce a system similar to this as well, in which people are not required to give their bank information, the company would surely have a great bump in its
PayPal, Inc (PayPal) provides online payment solutions to individual and business worldwide. It allows credit cards and bank accounts money transfers and payment to be made through the internet (Niranjanamurthy, 2014). Established in 1998, PayPal has since moved $282 billion payment volume in more than 26 currencies across 203 nations in 2015 alone, generating a total revenue of $9.24 billion (PayPal About - Home, n.d.).
Woda, K. (2006). Money laundering techniques with electronic payment systems. Information & Security International Journal, 18, 27–47.
The customer’s email are now delivered to the technical support team and the administrative team
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