Paypal: The Online Payment CompanyNuruzzaman Milon (IT09006)

Topics of discussion

The history of PayPal How the service works Transaction type PayPal Fees Competitors of PayPal Complains PayPal’s future

History of PayPal

Co-Founder: Peter Theil Elton Musk

Theil was a security lawyer and a option trader.

Musk was a engineer and a model from South Africa.

PayPal was founded in December, 1998.

How the service works

How the service works

Enter the recipient’s email address, which is their unique identifier (like a bank account number) in the PayPal system.

Enter the desired amount and choose recipient’s currency.

Select payment type – either ‘Online purchases’ or ‘Personal payments’.

Click ‘Continue’– sender will be prompted to log in to his account to confirm transection.

E-mail notification to the both party.

Transaction Type

Personal Transaction Buy Sell Transaction

Business Transaction

Does PayPal free?

Free to open a PayPal account. Free to shop online in the UK at

thousands of websites. Free protection wherever you shop with

PayPal, so in the unlikely event that an item doesn't arrive or isn't what you expected, you can get your money back.

Free to send money in the same currency to anyone in the UK when you use your bank account or balance.

Does PayPal free?

Free to download the PayPal App on your iPhone, Blackberry and Android which you can then use to check your balance, send money to friends and family and donate to charity.

Free to add money to your PayPal balance from your bank account.

Free to make a standard withdrawal from your PayPal balance to your bank account.

How PayPal makes $$

Float; PayPal re-invests funds that sit in member’s PayPal account.

The charge approximately 2.5% of the dollar amount of the recipients of PayPal transfers.

PayPal fees

Purchase Pay- Free. Get paid- 1.9% to 3.4% + €0.35 EUR.

Personal Taransfer From PayPal Balance- Free. From other Debit or Credit card-

3.4% + €0.35 EUR. The sender decides who pays this fee.

Competitors of PayPal

MoneyBookers, Alertpay, Payza, eMoneyMail, Ecount, payMe.com, CheckFree, Gmoney.com, Moneyzap, PayPlace.com etc.

PayPal simply does the transaction better, cheaper and faster than the rest.

They also had the first move advantage.

Complaints about PayPal

Poor customer service. Credit protection policies are flimsy. The aprox. 2.5% charge is too high. “Double Taxation” on third party site

like- eBay, Amazon. Moreover tons of complains can be

found on these sites- www.aboutpaypal.org www.paypalsucks.com www.paypalwarning.com

Future of PayPal

“PayPal has a bright future.”- TechCrunch

They are considering branching out into a full fledge online bank with many booking products.

They will continue their successful integration with many e-commerce sites and service providers.

Thanks…