Back in the early ’90s, sending and receiving payments online between individuals was not an easy process.
People didn’t even imagine the possibility of such transactions, even though banks and other financial institutions had the means of conducting them.
Now everyone knows about and uses the world’s largest and most famous online payment system, PayPal.
Bold statement, you say? Check out the facts assembled by the folk at PLAY-N-PLAY and think again.
At the time of writing, PayPal operates in 202 countries worldwide, with 203 million active users and 16 million merchant accounts.
Since its inception, it has recorded 1,7 billion transactions with 32 payment transactions per active account. 768.745 websites worldwide use PayPal. And PayPal’s website itself, PayPal.com, ranks 73 worldwide by traffic. Impressive, right?
Now, let’s dig into the history of PayPal and learn about its journey to success. You won’t regret it, as it is a phenomenal one.
Where does the story of PayPal begin?
Well, it goes back to Confinity Inc. created by Ken Howery, Luke Nosek, Max Levchin and Peter Thiel in 1998.
The company aimed to provide secure software for financial transactions on individually owned devices.
In 2000, Elon Musk initiated a merger between the two parent companies of PayPal; Confinity and X.com, his own online banking company.
After realizing that Confinity’s operations were more profitable than X.com’s, Musk continued to focus only on Confinity’s operations of transferring money.
When was PayPal founded?
PayPal, as we know it, officially launched in October of 2000.
It gained skyrocketing success in its early stage of development mainly due to using referrals and small charges of $20, $10 and eventually $5 for signing up.
The company achieved almost 10% in daily growth during this period of its’ history.
Between March 2000 and the summer of the same year, PayPal obtained 5 million new clients; prior to that, it had 1 million.
The business was going great. PayPal’s name and usage were spreading around the world faster and faster.
In 2002, PayPal joined the world of publicly traded companies. In the same year, PayPal stock grew to 55% on NASDAQ.
It was considered a phenomenal gain for a start-up like PayPal. By gaining such huge success over a very short time, PayPal was in the center of the world’s attention.
In July of 2002, eBay Inc. acquired PayPal for the fine price of $1.5 billion. Ever since PayPal became eBay’s users’ first choice for money transfers.
The acquisition spread the word about PayPal even faster and helped PayPal grow much larger.
PayPal entered a new era of success. Following its strategy of world expansion, in 2005, PayPal acquired VeriSign payment solutions.