Using eBay for Microfinance

925 Words4 Pages
By now most everyone has heard of or used eBay. In its short 15-year history, eBay has become one of the most widely used mediums for online buyers and sellers to trade in a peer to peer format, a format that has been wildly successful. From individuals selling junk they found in their attic to start-up storefronts within eBay, one’s buying options are endless and are diversified into hundreds of categories and sub-categories. As most who have ever used eBay to buy or sell anything know, there is usually the always-certain checkout through Paypal (which eBay acquired in 2002). Though these companies seem to have one thing in mind, making money, it might interest most to know that they are both making a difference in their own ways. Given that eBay has acquired and owns Paypal, they still operate as two separate entities and give back in separate ways. First, Paypal has begun facilitating payments for microloans through organizations like Kiva and other microfinance outfits. Paypal and eBay have started their own microfinance site in the form of MicroPlace, which is similar to most other microfinancers like Kiva. In addition, eBay has started a site that operates like the normal eBay site, but with a twist. This new, innovative wing of eBay allows buyers and sellers alike to give to their favorite causes through buying and selling in the auction format that we have grown so familiar with. Over the past few years an old dog has learned some new tricks. Though microfinance has been around since the 1970’s, it has reemerged as a very innovative and effective way to eradicate poverty by furnishing a way to create income and sustain it through small, low interest loans. One of the most popular microfinance companies is the... ... middle of paper ... ...that its possible to browse by the return or interest rate you wish to receive on the loan. Though this website has the nuts of bolts of sites like Kiva, it has its own personality and has made its own difference, and that difference has totaled 417,145 people to date. Lastly, eBay has created its own unique blend of giving back and providing an online marketplace. Their take on giving back started in 2003 and has been a huge success. It operates just like the existing eBay site in that normal people and businesses trade their goods in a peer-to-peer format, but instead of these online traders keeping all of their profits, they donate different portions of their profits to charities and causes they deem worthy. This extremely successful way to donate has really caught on and had raised almost $155 million for U.S. non-profit organizations in March of 2010.

    More about Using eBay for Microfinance

      Open Document