If you ever bought anything online, there is an excellent chance you will have done so using PayPal.
Launched in 1998, the company has grown into the world’s premier web payment system and has become synonymous with online shopping.
Initially, though, the company was producing security software for mobile devices before changing course a year later to become an online system for transferring money.
As the best-known e-wallet, PayPal grew exponentially on a global scale. In 2002, PayPal was acquired by online auction site eBay for $1.5 billion. The acquisition was a smart move, and soon PayPal became the most popular payment method on the eBay platform.
By autumn 2014, eBay spun off PayPal as a separate entity to become a publicly-traded company.
Due to the global pandemic and the surge in online shopping, PayPal posted a Q4 2020 report they hailed as an “outstanding finish” to the year.
Total payment volume amounted to $277 billion, a leap of 39%, generating revenue of $6.12 billion, up 23%. The quarter also ended with 16 million new active accounts.
The quarter rounded off a 2020 Financial Year that PayPal described as the company’s strongest ever performance. The year’s total payment volume was $936 million, up 31% on the previous year, generating $21.45 billion in revenue, up 21%. Over the year, a total of 72.7 million new active accounts were registered.
PayPal expects a similar performance in this year, with total payment volume to continue to grow in the high twenties on a percentage basis, and revenue to see growth of around 19%.
The world’s most recognized digital wallet
Easy to send and receive cash
QR code checkout
Buy now, pay later option
Offers Venmo credit cards
Trade crypto
PayPal lets users pay without cash at stores, shopping malls, restaurants, and many other businesses. A mobile app enables PayPal account holders to pay with their phone and even split the bill with friends when eating out.
PayPal is very secure because you link your bank account and debit/credit card when you set up your account. When you subsequently make a payment via PayPal, your sensitive payment details are never exchanged with the merchant.
To send money to a friend, all you need is their email address or cell phone number. A single tap is all that’s required for them to withdraw the money.
Safe and secure
Widely accepted around the globe
Easy to set up and use
Simple to keep track of your transactions
Mobile friendly
Fast transactions
PayPal is a phishing magnet
Money going into a new business account is put on hold for a while
You may be charged additional bank fees
PayPal account creation is straightforward. An email address and a bank account are all that’s required.
The setup is streamlined; you are walked through the process, including choosing which bank account and cards to link.
You can either register via the PayPal website or after you download the app to your phone.
