Paypal Has Company

In: Business and Management

Submitted By ashukre20
Words 2170
Pages 9
CASE STUDY*

PayPal Has Company

PayPal—the online payment processor now owned by eBay—was the first truly successful Internet-based e-commerce payment system. Its origins were quite simple. On November 16, 1999, Peter Theil sat with friends at a restaurant. When the bill arrived, Theil used his Palm Pilot to "beam" his share to a friend sitting across the table. Theil and fellow co-founder Max Levchin had built a system that would allow them to send money to one another via a Palm Pilot's infrared links. From this idea sprang one of the first "peer-to-peer" payment systems: a system that allows individuals to send money to one another via e-mail.

PayPal emphasizes ease of use for both senders and receivers of cash. Here's a brief synopsis of how it works. First, you create a PayPal account at the PayPal Web site by filling out a one-page application form and providing credit or debit card or bank account information. Only PayPal is privy to this information, not the receiving party. Then, when you use PayPal to pay for a purchase, money is drawn from the credit card or bank account and transmitted to the Automated Clearing House (ACH) Network, a privately operated financial intermediary that tracks and transfers funds between financial institutions.

[pic]

The party who is to receive the payment is notified via e-mail that money is waiting. If the receiving party has a PayPal account, the funds are automatically deposited into the account; if the person does not have a PayPal account, he or she must set one up, and then the money is credited to his or her account. Once the funds are in the PayPal account, the recipient can then transfer them electronically to a checking account, request a paper check, or use PayPal to send the funds to someone else.

Levchin and Theil originally conceived of PayPal as a…...

Similar Documents

Company Background Bitstream Is a Software Company That Has Identified an Opportunity Todevelop and Market a New Product.

...of economic growth among different provinces in China and its tendency. The inner mechanism of regional economic growth will also be discussed. In the second section, I will briefly introduce the literature review about regional economic study in China. In the third section, using a sample of per capita GDP data over 1978-2008 in 31 provinces in mainland China, I compute a global spatial autocorrelation, and use the local spatial autocorrelation to get general idea where this global spatial autocorrelation come from. In the fourth part, the spatial factors which influence regional economic growth will be tested. Conclusion will be included in the last section. 2. Literature review In China, the study of regional economic growth has attracted many attentions, but the study on regional correlation and disparity is usually made using traditional non-spatial analysis such as variation coefficient, Gini coefficient and so on (Xu et al,2005). However, at the regional scale, spatial effects and particularly spatial autocorrelation are important factors that contribute to the regional economic development (Song, 1996). Most of research about regional economic study is based on provincial level or city level data (Wu and Xu, 2004), where the spatial correlation method of Moran I is being used widely. Spatial analysis suggests that after more than twenty years development under Chinese Economic Reform and Opening, the spatial association among provinces becomes much......

Words: 2815 - Pages: 12

Paypal

...Small Business > Managing Employees > Work Schedules How Does PayPal Work for Sellers? by Lori Soard, Demand Media Electronic payments are convenient for customers. Electronic payments are convenient for customers. Related Articles How Does PayPal Work for Selling? How Does PayPal Work With Bank Accounts? Once You Sell an Item How Long Does It Take to Show in PayPal? How to Calculate PayPal Fees How Does PayPal Handle Fraud? How to Set Up PayPal on eBay Online sellers who are looking for a reliable solution to accept payments online will likely look at PayPal as a viable option. PayPal allows your customers to pay with a credit card, e-check or their PayPal balance. As of time of publication, fees for businesses receiving under $5,000 per month were 3.4 percent of the transaction plus 50 cents. Since most point-of-purchase credit card machines charge similar rates plus monthly fees, using Paypal can save your small business money. Ads by Google iPage® Web Hosting Web Hosting, Email & Free Domains! Trusted by Millions.www.iPage.com Set-Up The first step is to sign up for a free PayPal account. Unless you are selling high-ticket items or expect more than $5,000 a month in sales at first, it is probably best to start with a personal account. You can switch to a merchant account at any time. HTML Code Once your account is set up and confirmed with your business banking account, sign in and click on the Merchant Services tab. You have several choices in...

Words: 552 - Pages: 3

Intro to Paypal

...PayPal Payments Pro Integration Guide Last updated: December 2012 PayPal Payments Pro Integration Guide Document Number: 100001.en_US-201212 © 2010-2011 PayPal, Inc. All rights reserved. PayPal is a registered trademark of PayPal, Inc. The PayPal logo is a trademark of PayPal, Inc. Other trademarks and brands are the property of their respective owners. The information in this document belongs to PayPal, Inc. It may not be used, reproduced or disclosed without the written approval of PayPal, Inc. Copyright © PayPal. All rights reserved. PayPal S.à r.l. et Cie, S.C.A., Société en Commandite par Actions. Registered office: 22-24 Boulevard Royal, L2449, Luxembourg, R.C.S. Luxembourg B 118 349 Consumer advisory: The PayPal™ payment service is regarded as a stored value facility under Singapore law. As such, it does not require the approval of the Monetary Authority of Singapore. You are advised to read the terms and conditions carefully. Notice of non-liability: PayPal, Inc. is providing the information in this document to you “AS-IS” with all faults. PayPal, Inc. makes no warranties of any kind (whether express, implied or statutory) with respect to the information contained herein. PayPal, Inc. assumes no liability for damages (whether direct or indirect), caused by errors or omissions, or resulting from the use of this document or the information contained in this document or resulting from the application or use of the product or service described herein. PayPal,......

Words: 10583 - Pages: 43

Case Study: Paypal Has Company

...Case Study: PayPal Has Company PayPal—the online payment processor now owned by eBay - was the first truly successful Internet-based e-commerce payment system. Its origins were quite simple. On November 16, 1999, Peter Theil sat with friends at a restaurant. When the bill arrived, Theil used his Palm Pilot to "beam" his share to a friend sitting across the table. Theil and fellow co-founder Max Levchin had built a system that would allow them to send money to one another via a Palm Pilot's infrared links. From this idea sprang one of the first "peer-to-peer" payment systems: a system that allows individuals to send money to one another via e-mail. PayPal emphasizes ease of use for both senders and receivers of cash. Here's a brief synopsis of how it works. First, you create a PayPal account at the PayPal Web site by filling out a one-page application form and providing credit or debit card or bank account information. Only PayPal is privy to this information, not the receiving party. Then, when you use PayPal to pay for a purchase, money is drawn from the credit card or bank account and transmitted to the Automated Clearing House (ACH) Network, a privately operated financial intermediary that tracks and transfers funds between financial institutions. The party who it to receive the payment is notified via e-mail that money is waiting. If the receiving party has a PayPal account, the funds are automatically deposited into the account; if the person does not have a PayPal......

Words: 2166 - Pages: 9

Paypal

...Introduction 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. In PayPal's official website, it described itself as “the safer, easier way to pay and get paid online. The service allows anyone to pay in any way they prefer, including through credit cards, bank accounts, PayPal Smart Connect or account balances, without sharing financial information". It is a person to person (P2P) payment system that people can transfer money easily by using its services; it is very popular in the online shopping area. 1. From an analytical prospective, explain why do you think PayPal has been so successful throughout the world? “The success of E-Bay’s auction business had a rare effect of creating a vast market for an entirely new payment product, one that would allow non-merchants (who cannot accept conventional credit card payments) to receive rapid payments in remote transactions”. (Mann, 2003, p.377). By providing fast and flexible services to both B2C and C2C money transactions, for cheap prices, the number of people who use this money transaction service growth. “The pervasive regulatory supervision of banks ensures that they honor their (P2P providers) obligations under a variety of......

Words: 1691 - Pages: 7

Customer Complaint Has a Good Value to Company

...Customer Complaint has a good value to Company I absolutely agree with the customer's complaint is the seat of Baoshan remark. Because the customer's expectations for the company's products, so after the purchase when there are errors found naturally upset, so ask the company, so the company should be careful to understand customers are not satisfied with the place, and make improvements. Customer complaints for many reasons, there may be a lack of local products, by handling customer complaints, you can make yourself a better understanding of the manufacturing process and product features the company's products. For example, I was the Secretary for the sales of instant noodles, soup packets may be left behind in the production process, customers will naturally not happy after opening the product, so you can reflect on the vulnerability of production to the person in charge of production, strengthening quality management. Another error is that the package instructions or instructions for use and the actual different, because a lot of customers when the company will follow the steps set out to do. If the effect can not be made as scheduled, the customer naturally unhappy after opening the product, they can take packing instructions or use the opportunity to learn whether there are deficiencies. If the effect can be made as scheduled, it can be personally taught the proper use of the customer; Ruoguo failure to make timely results, requires the company responsible......

Words: 326 - Pages: 2

The Acquisition of Ebay and Paypal

...introduce the acquisition of eBay and PayPal, and why eBay decided to acquire PayPal, what happened after the acquisition, and my recommendations about eBay’s acquisition strategy. I will start with the backgrounds of these companies. In PayPal's official website, it described itself as “ the safer, easier way to pay and get paid online. The service allows anyone to pay in any way they prefer, including through credit cards, bank accounts, PayPal Smart Connect or account balances, without sharing financial information." (PayPal, n.d., para 1). It is a person to person (P2P) payment system that people can transfer money easily by using its services; it is very popular in the online shopping area. Another company, eBay, was defined in its official website as an online shopping website in which individuals and companies can buy and sell various goods and services worldwide (eBay, n.d., para 1). Both companies are focusing on the online trade sector; but eBay is similar to an "auction" as well as PayPal is a payment method. Motivation Online P2P payment was a new idea at that time, and as any emerging market, many P2P services such as Flooz, Beenz, and CyberCash were failed (Punch, 2002, para 3). PayPal was one of those P2P payment companies that survived after competition. At that time, PayPal became the leader in P2P payment industry, and it was the most popular payment method in eBay auctions; more than 50% eBay users were using PayPal (LD, 2010, para 2). On the......

Words: 1172 - Pages: 5

Paypal Has Company

...1. What is the value proposition that PayPal offers consumers? How about merchants? The value offered to consumers is an electronic payment system for making online purchases that is free to use, without having to reveal their specific banking information to online sellers. PayPal is giving consumers a more convenient and trusted way to shop, as well as send or receive funds via instant transfer. PayPal offers merchants the ability to accept online payments without having to set up a merchant account, which is cost-effective especially for small businesses. It also gives them a level of fraud protection and security, quick access to funds, and the ability to do international transactions. 2. What are some of the risks of using PayPal when compared to credit cards and debit cards? Once the funds are withdrawn from the consumer bank account they cannot be recovered which could create a potential loss if they do not receive the good or service from the merchant. Credit cards offer more built-in fraud protection and a $50 maximum liability. “With PayPal, you may or may not receive you: money back, depending on whether PayPal can receive its money back, and a host of other conditions” (Laudon & Traver, 2009, p. 327). 3. What strategies would you recommend that PayPal pursue in order to maintain its growth over the next five years? PayPal needs to address their security issues if they wish to continue to grow. PayPal became known for buyer protection, and......

Words: 534 - Pages: 3

Internet Has Impact on International Marketing of Companies and Consumers

...Internet Has Impact on International Marketing of Companies and Consumers Student name: Chuqian Ma Word count: 1457 Date submitted: August 26, 2015 Abstract Companies and customers in international marketing have been changed by internet. The internet influences on companies in three aspects in this article, place, price and promotion, which are elements of Four Ps of marketing mix. The place and price are focus on the cost and supply chain, examples of Zara and Walmart are provided to prove the statements. The promotion of international marketing is focus on advertising channel and communication. Three main things of time, space, efficiency are used to identify the influence on the supply side by internet. Some negative effect such as information explosion and viral campaign are mentioned. As to the demand side, consumers are able to access various information and get more options in purchasing. Buyer behaviors changes along with online shopping. In such competitive marketing environment, companies have to improve their products and services that meet customers’ need for profit gained. The high level adoption of internationalization nowadays offers great opportunities in international marketing activities. As Internet has grown dramatically, more and more companies have realized its unlimited possibilities of development and have been involved in e-business. The purpose of this essay is to illustrate how internet can change the nature of the......

Words: 1805 - Pages: 8

Caso Paypal

...Paypal es un claro éxito de como revolucionar el sector de los pagos del ecommerce. Seguramente este éxito de PayPal reside en la importante serie de garantías que ofrece el sistema, ya que permite realizar diversas transacciones de dinero en medio de una plataforma en la que se ha puesto un real hincapié en la seguridad de la información de sus usuarios. La estrategia de Paypal para impactar en el mercado constó de tres fases; en primer lugar, PayPal se centró en la expansión de su servicio entre los usuarios de eBay en USA y, seguidamente, empezar a expandirse en otros sitios internacionales de eBay. Por último, se dedicaron a desarrollar las actividades de PayPal fuera de eBay. PayPal es un componente vital de la estrategia de crecimiento de eBay. Sin embargo, a su vez, el éxito de PayPal también está estrechamente ligado al éxito de los mercados de eBay. Visa y MasterCard, las dos compañías que representan la mayoría del volumen de las operaciones con tarjetas de crédito, están estructuradas como asociaciones que son propiedad y están bajo el control de miles de instituciones financieras que comparten la responsabilidad de la emisión de tarjetas y la adquisición de comerciantes, lo que dificulta mucho la innovación y/o cambios en el funcionamento de estas para intentar adaptarse a las nuevas oportunidades que nos va dando la tecnología. Sin embargo, sí que es cierto que ambas empresas han invertido en nuevas soluciones para la mejora de la seguridad de los......

Words: 363 - Pages: 2

Paypal

...Introduction The purpose of this report is to give an overview of how Paypal manages their online base system. Founded in December1998, Paypal became one of the world’s largest internet based payment system. It is an online electronic payment system where consumers can use to buy and sell goods and services online and making payments. Users can set up an account with just an email address. With this, a user is able to transfer cash from peer to peer without using any credit cards; just bank transfer. A notification will be issued once transaction is done. Firm Infrastructure As part of global expansion, Paypal entered NASDAQ to attract investors priced at $13 per share. With this, it had attracted bigger companies and soon a giant company, Ebay, acquired Paypal for $1.5 billion in 2002. This move increases the level of confidence where Ebay consumers could use Paypal for making their transaction. Soon after, it acquire Verisign in 2005 and generated a revenue close to $1.8 billion. However, Paypal can be a threat to banks. Although Paypal does not function like a bank, users can store their cash in Paypal with a minimum balance of $70 (Meola, 2016) Technology Development Database Management System As the world keeps on changing their technology, Paypal ensures that their own technology is also up to date. Being one of the first and largest company to use the Cloud technology, it has created multi layers of applications to ensure that the system is compatible to......

Words: 1309 - Pages: 6

Paypal

...Lecturer: ASSOC. PROF. DR HUSNAYATI BT HUSSIN Executive Summary Baguette Boulangerie, is a company as we can say a fast food, that sell fresh bread with various salad and multiple inside ingredients as a topping. Customer can order from the meal value that we serve easily. Our target customer is students from university and collage from Kuala Lumpur area. As a student, we understand that they usually work until midnight. Because of this reason, our operation is open until the late night. Baguette Boulangerie aims to provide selections of breads with timely delivery and convenience of ordering online, namely university students, at affordable prices delivered straight to your door. As we can understand that students nowadays are spending their time in front of the computer and surfing the internet. So it is valuable for use to know their behaviour by using online ordering. Beside save the customer time, we also do the delivery for them with term and condition. Different from any other competitor, it is very important for us to take care the quality of our food that we serve and at the same time provide high nutrition in each of the menu that have been ordered. Besides that, the most important is the food that we serve are halal food and certificated by the Jakim. It is important to us to analyse our competitor. It is because, to make sure our company can compete with other company who have more experience than us. How we generate our revenue are by collect from......

Words: 2319 - Pages: 10

Finance Mgmt - Analyze the Debt Capacity of the Company How Profitable Are Its Operations What Are the Trends in It How Has Growth Affected the Profitability of the Company

...your analysis, should the company open the mine? 7. If the cost of capital is 8%, which of the 3 projects should the ABC Company accept? 8. As a Statistician, advice what kind of Sampling schemes can we consider, and what factors will influence choice of scheme. What are the questions we should ask Mr. Namdeo, who works in the assembly line? FINANCE MGMT 1. Suppose you are Mr.Keen Kumar, the new manager. What steps will you take for the growth of Cooking LPG Ltd.? 2. (a) As a financial consultant, advise the proprietor whether he should go for the extension of credit facilities. 3. (b) Also prepare cash budget for one year of operation of the firm, ignoring interest. The minimum desired cash balance & Rs. 30,000, which is also the amount the firm has on January 1. Borrowings are possible which are made at the beginning of a month and repaid at the end when cash is available. 4. As a finance analyst, prepare a report for submission to the CFO and the Board of Directors, explaining to them the feasibility of the new investment. 5. From the facts outlined above, what report would Neha submit to the Board of Directors of palco Ltd ? 6. Analyze the financial viability of the two options. Which option would you recommend ? Why ? FINANCIAL MGMT 1. Analyze the debt capacity of the company. 2. How profitable are its operations? What are the trends in it? How has growth affected the......

Words: 587 - Pages: 3

Paypal Has Company

...PayPal Has Company PayPal—the online payment processor now owned by eBay—was the first truly successful Internet-based e-commerce payment system. Its origins were quite simple. On November 16, 1999, Peter Theil sat with friends at a restaurant. When the bill arrived, Theil used his Palm Pilot to "beam" his share to a friend sitting across the table. Theil and fellow co-founder Max Levchin had built a system that would allow them to send money to one another via a Palm Pilot's infrared links. From this idea sprang one of the first "peer-to-peer" payment systems: a system that allows individuals to send money to one another via e-mail. PayPal emphasizes ease of use for both senders and receivers of cash. Here's a brief synopsis of how it works. First, you create a PayPal account at the PayPal Web site by filling out a one-page application form and providing credit or debit card or bank account information. Only PayPal is privy to this information, not the receiving party. Then, when you use PayPal to pay for a purchase, money is drawn from the credit card or bank account and transmitted to the Automated Clearing House (ACH) Network, a privately operated financial intermediary that tracks and transfers funds between financial institutions. The party who is to receive the payment is notified via e-mail that money is waiting. If the receiving party has a PayPal account, the funds are automatically deposited into the account; if the person does not have a PayPal account, he......

Words: 2169 - Pages: 9

Paypal

...comparative advantage, is a much more difficult concept. Absolute advantage is the simplest measure of economic performance. It is the ability to produce a good at a lower cost, in terms of real resources than another country. Absolute Advantage is neither necessary nor sufficient for a country to export a good. In other words, a country has an absolute advantage economically over another, in a particular good, when it can produce that good more cheaply or it can produce more of the good than another country can, with the same amount of resources. In fact, absolute advantage appears when multiple products are being considering. For example, if the country “A” has an economic advantage against the country “B” at producing the product “X”, and the country “A” has an economic advantage against the country “B” at producing the product “Y”, so “A” has an absolute advantage against “B” with respect to products X and Y. In fact, a country has an absolute advantage over it trading partners if it is able to produce more of a good with the same amount of resources or the same amount of a good with fewer resources. For example, Zambia has an absolute advantage over many countries in the production of copper because of the existence of reserves of copper ore or bauxite. So in terms of the production of goods, there are obvious gains from specialization and trade, if Zambia produces copper and exports it to those countries that specialize in the production of other goods or......

Words: 922 - Pages: 4