PayPal has become a global payment method that is often compared with Visa and MasterCard in popularity. Now it seems strange to see online platforms that do not accept PayPal payments since the number of accounts will soon reach 400 million and it is available in over 200 countries all around the globe.
How could this banking option become so favored within a quite short period of time? Let’s analyze the PayPal path to success and how it managed to achieve to become one of the world’s most popular payment systems.
In short about PayPal
With over 20 million merchant accounts, PayPal is often used for online purchases. This platform connects buyers and sellers in a variety of spheres. You can find lots of online stores, different service providers, entertainment platforms, and online casinos that use PayPal. Gamblorium expert Garet Smith emphasizes: “In online gambling people are 54% more willing to choose a casino website that accepts payments via PayPal.” No wonder this platform is considered to be a leading online banking option in many countries. But what PayPal steps helped to achieve this recognition? Continue reading and you will find out.
The company took its origin back in 1998. It was originally called Confinity and founded by Peter Thiel and Max Levchin. Based in California, the main idea of the company was to provide people with simple and efficient low-cost payments. Within only 3 years of operation, the company handled payments for the total value of $3 billion from over 10 million individual consumers and over 2.5 million commercial customers. Another great step forward for the company was the issuance of new company stock that increased the company value significantly.
The next significant step in the PayPal success was eBay that purchased the company in 2002 for $1.5 billion. It is not a secret that PayPal has been a payment system of eBay for over 12 years. It makes sense to mention that eBay was the largest eCommerce platform by the number of users in 2001. This partnership made it possible to build a solid reputation and attract a variety of new users. Furthermore, the main focus was made on the security of payments, so such protocols as the VeriSign payment solution and the PayPal Secure Card Service have appeared during that period too.
The major PayPal shareholder Carl Icahn announced the necessity to part ways with eBay and the split took place in June 2014. As soon as the company stock begins trading, its value reaches a whopping amount of $49 billion. The next significant steps in growing the company’s trust were the increase in the speed of the transactions thanks to Xoom purchase, the launch of the first P2P payment system, and edging into the fast-growing cryptocurrency market.
As you can see, the success of the company was based on several important factors. It managed to provide users with affordable and secure money transactions, partner up with world’s leading eCommerce platforms, obtain smaller companies to improve user experience, follow the trends, and become an innovator in many solutions! However, the popularity of PayPal continues to grow at the moment too. What are the reasons for that?
Benefits of using PayPal
The payment processor does not plan to lose its palm of supremacy and continues to impress its users with new ideas and solutions. The main reasons why PayPal is preferred to other payment systems look as follows:
- Credit card security;
- Affordable and clear transaction fees;
- Mobile and desktop versions;
- Full refunds;
- Simplicity of sending money;
- Support for over 25 currencies;
- Worldwide acceptance;
PayPal is always associated with the security, trust, and safety of transactions. It continues to extend its reach and its worth has reached $159.3 billion in 2020. Despite the existence of a great number of competitors, it manages to be at the top of the most trusted and widely used payment methods in many countries, so the maximum point is still to be reached!
It is not the story of Cinderella and luck that made PayPal the world’s largest payment processor. In fact, it is the hard work, risk, and innovative solutions made by the company management team. At the same time, the story of PayPal success can be called one of the greatest in the era of the Internet and can hardly be compared with any similar payment method!