During the early ’80s and ’90s, online payments were not as popular and effortless as they are now. Firstly, there were no platforms available that we’re solely dedicated to this purpose. Secondly, people were skeptical about the safety and security of online transactions, and finally, banks and financial institutions didn’t have the resources to handle the bulk of such transactional requests. So, money transferring remained a cumbersome and time-consuming task.
Then entered PayPal in the year 2000, and changed things forever. With its innovative technology and new ideas, it altered the way people used to see and perceive financial transactions. It made things easier, faster, and much more comfortable.
Today, with almost 305 million users worldwide, PayPal is the biggest and most popular online payment platform. And it is set to achieve much greater heights in the future.
Read on to know more about this extraordinary e-commerce giant that is out to write the future of online banking and payments.
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What is PayPal?
PayPal is an online payment and money transfer platform that allows its users to make payments through the internet. Anyone with a PayPal account can easily send and receive money from anywhere in the world with the click of a few buttons on their phones or computers.
You can conveniently link your bank account, Debit, or Credit cards to your PayPal account and can choose any one of them while making payments. Want to make things even simpler? Just add a default payment method and you are good to go! It is effortless, secure and completely safe.
Furthermore, you can also receive money from people through this platform. The money received sits in your PayPal account and you can either transfer it to your bank account or use it for making payments through this platform. And unless you have requirements for currency conversion, most of these services are free of cost.
So, whatever your needs are, this outstanding digital money transfer platform has got all the features you need!
Origin of PayPal
Do you want to know an interesting fact?
When PayPal was founded in 1998, it wasn’t even called PayPal.
Yes, that’s right!
This digital-payment platform was originally called Confinity and was founded by entrepreneurs Peter Thiel, Luke Nosek, and Max Levchin in December 1998. The company was founded in Mountain View, California, where it still has its headquarters.
It was initially established to create security software for handheld devices. However, the venture didn’t receive any success. So, the founders decided to explore the online financial sector, making Confinity a digital wallet. The year 1999 witnessed the launch of the very first version of the company’s electronic payments system.
In March 2000, Confinity merged with X.Com, a digital banking corporation founded by Elon Musk. Later, in the month of October of the same year, Peter Theil replaced Musk and became the CEO of X.Com. The company was finally renamed PayPal in 2001 and went public in 2002. Its success skyrocketed after that, and since then, PayPal has never looked back!
About The Owner
After the huge success and increasing worldwide popularity of PayPal, the digital giant eBay Inc. acquired it in the year 2002 for a whopping $1.5 Billion.
eBay is an online auction house and marketplace that caters to the needs of both B2B and B2C businesses. It has been one of the very first companies to create an online platform that brings buyers and sellers together at one place. eBay is the industry leader in the e-commerce sector.
Following its acquisition by this behemoth, PayPal received a massive boost in both its user base and its international popularity. It has been the preferred choice of all eBay users across the world.
After a successful merger that lasted sixteen years, eBay decided to call it quits with PayPal and signed a long-term deal with another Amsterdam-based payments company, Ayden.
As a result, this successful merger ended in 2015 and PayPal once again became an independent company. However, it will remain as a payment option for eBay shoppers until July 2023.
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Pros & Cons Of Using PayPal
The popularity of PayPal is growing leaps and bounds. And, as the world is moving towards the online platforms for almost everything, PayPal indeed has a very bright future ahead.
Let’s have a quick look at some of the pros and cons of using this platform for your financial transactions.
Pros:
- Easy to Use and Understand
PayPal has a very simple and user-friendly interface that is easy to comprehend and use.
Setting up an account on the platform just requires a legitimate e-mail address. Linking your bank account, credit and debit cards can also be done in a few quick steps. PayPal has no complicated functions so that even beginners can manage it with ease.
- Can Easily be Used on a Mobile Device
Today, people use their mobiles for almost everything. They provide them with the benefit of getting things done on-the-go.
PayPal, just like other famous digital platforms, has its own user-friendly mobile application for both Apple and Android users. The app is super easy to use, and allows users to make and receive payments from anywhere around the world.
- No Fees for Sending Money
PayPal does charge a fee for some of its services, but sending money to your dear ones is not one of them. Users can easily send money to their friends and family members residing abroad without worrying about the additional charges.
- Globally Available
As of today, PayPal is available in more than 200 countries and supports almost 100 different currencies. Plus, almost all the marketplaces, shopping sites, and even small businesses accept payments through PayPal. It has a very wide reach and is on the way to expand it even further.
- It Is Completely Safe and Secure
PayPal has an encryption feature that ensures the highest protection of user’s data. Compared to its adversaries, PayPal has much a higher level of security. So you can comfortably use it without worrying about the safety of your data.
Cons:
- Charges Fees From Business Accounts
PayPal offers a lot of services for free and some at a very nominal fee. People having personal accounts don’t have to pay any additional charges for their transactions, but they have limits on the amount of money being transferred. And it does charge a fee from the business account holders. Plus, non-PayPal money transactions are very expensive.
- Popular Amongst Scammers
As the largest and one of the most widely used digital payment platforms, PayPal is highly vulnerable to scams and frauds. There are many scammers and fraudsters present on the platform who try to dupe people using bogus schemes and offers.
- Absence of a Good Customer Support System
This is undoubtedly the biggest disadvantage of using PayPal. Its customer service is very unsatisfactory. If you encounter an issue of any kind, it is very difficult to connect with the support team. As they generally use automated replies to answer customer’s queries, it becomes even more troublesome to reach a customer support executive who has genuine answers to your questions.
Conclusion
With that said, there is no denying the fact that compared to other payment platforms, PayPal is still the best. It has better features, a wider reach, and is simpler to use and handle.
Yes, it has some issues, but which platform doesn’t? No digital platform can ever be absolutely foolproof, and PayPal is working hard to improve its feature and user experience.
Overall, it is safe to say that with its outstanding features and ever-increasing popularity, this online payment platform is here to stay for a very long time!
So, what are you waiting for?
Click here and set up your own PayPal account for free!