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Page history last edited by Sqpl78 9 years, 5 months ago


an eBay company






About Paypal


Founded in 1998, Paypal, an eBay Company, enables any individual or business with an email address to securely, easily and quickly send and receive payments online. Paypal's service builds on the existing financial infrastructure of bank accounts and credit cards and utilizes the world's most advanced proprietary fraud prevention systems to create a safe, global, real-time payment solution. Paypal has quickly become a global leader in online payment solutions with 64 million account members worldwide. Available in 45 countries around the world, buyers and sellers on eBay, online retailers, online businesses, as well as traditional offline businesses are transacting with Paypal. Source: Paypal, March 2005



Pay Pal profit


PayPal charges a $0.30 flat fee per transaction received, as well as a variable percentage (4.9%, or 1.9 to 2.9% for Premier and Business Accounts). There are also fees for cross-border transactions. PayPal runs at an estimated 20-25% margin.




Things to read:





Questions to consider:



* What does Paypal do?

* What are the core components of the Paypal business?

* How does Paypal make money?

* What are the ethical issues raise in how Paypal collects and disburses funds?

* What are the complaints brought by some Paypal users about the service?

* Is the claim that the company is acting in an unethical manner fair?

* In what ways could Paypal improve the management of its service?


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