Headquartered in the United States, PayPal is an international online payment system. At the present time PayPal is one of the largest Internet payment services in operation.
PayPal’s Early Beginnings
PayPal commenced operations in 1998. The company had an initial public offering, or IPO, in 2002. Later that same year, PayPal became a wholly owned subsidiary of eBay.
In 2015, PayPal once again became an independent company. A second IPO was conducted that same year, resulting in a valuation of PayPal at $46.6 billion.
At the time PayPal initially was launched, the enterprise actually was known as Confinity. The enterprise was founded by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery.
PayPal’s Mergers and Acquisitions
In March 2000, Confinity merged with an online banking company called X.com. X.com was founded and run by Elon Musk.
A year after the merger, Musk determined that the enterprise would be called PayPal. Musk oversaw taking the company public. PayPal is now traded on NASDAQ, using symbol PYPL.
In 2015, PayPal acquired another online money transfer service, Xoom Corporation. The complete slate of PayPal subsidiaries are Braintree, Paydiant, Venmo, PayPal Credit, and Xoom Corporation.
PayPal Launches PayPal.Me Making Sending Money Easier
Also in 2015, PayPal launched PayPal.Me. PayPal.Me is a peer-to-peer payment platform. At the time PayPal.Me commenced operations, PayPal itself had 170 million users. The goal was to a mobile money transfer experience that utilized that same tools as PayPal, but was faster.
In 2014, the last year a full set of statistical data is available, PayPal moved $228 billion. The money moved through the PayPal system that year was in 30 different currencies. The funds moved between and within 190 countries.
PayPal May Not Be Available to Everyone
Very few countries do not permit the use of PayPal. Few countries are restricted from accessing PayPal. Countries in which PayPal is not available at this time are Ghana, Turkey, Pakistan, Iraq, Afghanistan, and any nations on the U.S. sanctions list at any given point in time.
In some countries, personal PayPal accounts are not permitted, and only business accounts are able to be utilized. Japan and India are examples of this type of situation.
PayPal was operating for a while in Turkey. However, in the end, the company was unable to win appropriate approval to continue operating an online money transfer system in that nation.
PayPal Is Not A Bank
In the United States, PayPal is not a bank. It is regulated as a so-called money transmitter on a state-by-state basis.
Although not technically a bank, PayPal nonetheless is subject to some of the same requirements of banks that are imposed by the Patriot Act. These relate to certain types of disclosure requirements related to national security. Their Paypal Merchant Services make it easier for you to get paid anywhere you are in the world.
PayPal does have banking authority in some nations. For example, in 2007 PayPal Europe was granted a banking license in Luxemburg. This designation permits PayPal to engage in the banking business throughout the European Union.
PayPal’s Executive Leadership
John Donahoe serves as Chairman of the Board of Directors of PayPal. Dan Schulman is the company’s Chief Executive Officer. PayPal corporate headquarters are in San Jose, California. The operations center is located in Omaha, Nebraska.