PayPal – the Story of the World’s Biggest Online Payment System
PayPal brings us lot of payment opportunities that we are thankful for – we can hold money in an online bank in 25 currencies, but we can receive and withdraw them in over 100 respectively 50 currencies. We can use that money to buy services and products or even to make donations! As a matter of fact, there are 768,745 websites that allow PayPal as a payment option. So, why would one not have a PayPal account?
The guys at Play-N-Pay have gathered all the data you need to know about PayPal’s NOW and THEN, and you can check it out below the article.
Today, there are more than 203 million active users on the platform, with about 16 million merchant accounts. The payment volume annually reaches $1.2 billion online via mobile devices, which translates to $8,000 processed every second.
But let’s see how it all started!
In 1998, Ken Howery, Luke Nosek, Peter Thiel, and Max Levchin built Confinity Inc., PayPal’s ancestor. Two years later, the company merged with one of their rivals, X.com, founded by Elon Musk.
In 2002, only 4 years after it was issued, PayPal managed to win the year’s best gain for newly founded companies. They had just joined the companies that were publicly traded, and their stocks grew to 55% on NASDAQ quickly after.
They reached the performance after having set a charge of 20$, 10$ or 5$ for every new account that was created. The company started growing as much as 10% every day in the beginning, but the major leap happened in 2000. In just a couple of months – March to July – the number of users went from 1 million to 5!
Two years later, they were bought by eBay for $1.5 billion, after a previous partnership. After this move, PayPal has become the only payment opportunity for eBay users.
The company became gradually larger, as they bought other solutions that helped them expand. In 2013 they acquired Braintree, which is an intermediary platform where the money is being held until a complete transaction takes place and the beneficiary can actually use it, and not only see it in their balance.
In 2014, after 12 years of partnership, eBay and PayPal decided to split ways. In the first day after the separation, PayPal’s market value reached $48 billion. And the rest is history! Or.. actuality.
Today, 75% of the U.S. consumers have a PayPal account – this implies 87% of the Millennials, but also 15% of the Baby Boomers and of those in Gen X who prefer it as the payment method.
PayPal is continually growing and thriving – the payment transactions in the first quarter of 2017 have increased by 22.7% compared to the same interval of 2016. They also added 6 million extra accounts, compared to the previous year. Obviously, this has led to a net income of 384 million, meaning a growth of 5.2%.
Yearly, their growth is of 10%, compared to the other payment processing companies, who only grow at a rate of 3%. We’d say their competitors have a long way to go to catch them up, especially considering that the second placed company holds only 2.11% of the market (compared to PayPal’s 83%).
To sum it all up, PayPal is the story of perseverant people, who did their best to achieve their dream. Their only option was growth, and they did it well, even from the beginning. And even if their story had a lot of obstacles to overcome, they did it – and they are still doing it!
For the complete story, check out the infographic!