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PayPal
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{{pp-pc|small=yes}}{{Short description|American multinational financial technology company}}{{redirect|Pay Pal|The Simpsons episode|Pay Pal (The Simpsons)}}{{Use American English|date=November 2015}}{{Use mdy dates|date=July 2016}}- the content below is remote from Wikipedia
- it has been imported raw for GetWiki
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| name | PayPal Holdings, Inc.| logo = PayPal.svg| image = PayPal San Jose Headquarters.jpg| image_size = 250px| image_caption = Headquarters in San Jose, California, U.S.
| Nasdaq-100 component | S&P 100 component | S&P 500 component {edih}| founded = {{ubl | (as Confinity) | (as X.com) | (as PayPal) }}| predecessors = {{ubl | Confinity | X.com }}| location = San Jose, California, U.S.| area_served = Almost worldwide| founders = {{ubl | Ken Howery | Max Levchin | Luke Nosek | Yu Pan | Peter Thiel | Elon Musk | Harris Fricker | Christopher Payne | Ed Ho }}| key_people = {{ubl | John Donahoe (chairman) | Alex Chriss (president and CEO)WEB,weblink Executive Leadership, PayPal, 2023-09-27, live,weblink 2023-09-27, }}| industry = Financial technology| products = Credit cards, payment systems | 29.77 billion|link=yes}} (2023) | 5.028 billion}} (2023) | 4.246 billion}} (2023) | 82.17 billion}} (2023) | 21.05 billion}} (2023)| num_employees = 27,200 (2023)| parent = | divisions = {{ubl
| PayPal Inc. (PPI)
| PayPal Pte. Ltd (3PL) | PayPal Payments Pte. Holdings (PPLUX) | PayPal Payments Pte Limited (4PL) }}| subsid = {{hlist | Braintree | PayPal Honey | Paydiant | PayPal Credit | Tradera | Venmo | Xoom Corporation | Zettle }} | paypal.com}} | DATE=8 FEBRUARY 2024 | U.S. SECURITIES AND EXCHANGE COMMISSION >ACCESS-DATE=FEBRUARY 11, 2024, }}File:EBayTorontoOffice2.JPG|thumb|upright|eBay, PayPal, Kijiji and StubHub, 500 King Street West, TorontoTorontoPayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers; it serves as an electronic alternative to traditional paper methods such as checks and money orders. The company operates as a payment processor for online vendors, auction sites and many other commercial users, for which it charges a fee.Established in 1998 as Confinity,NEWS,weblink Reid Hoffman And Peter Thiel In Conversation: Finding The Best Candidates For The Job, Mac, Ryan, May 1, 2012, Forbes, 2018-02-28, March 1, 2018,weblink live, PayPal went public through an IPO in 2002. It became a wholly owned subsidiary of eBay later that year, valued at $1.5 billion.NEWS,weblink EBay to Buy PayPal, a Rival in Online Payments, Richtel, Matt, July 9, 2002, The New York Times, November 23, 2014, December 28, 2014,weblink" title="web.archive.org/web/20141228065623weblink">weblink live, In 2015 eBay spun off PayPal to its shareholders, and PayPal became an independent company again.WEB,weblink EX-10.5, www.sec.gov, 2018-06-16, April 16, 2020,weblink live, WEB,weblink EBay follows Icahn's advice, plans PayPal spinoff in 2015, Seetharaman, Deepa, Mukherjee, Supantha, September 30, 2014, Reuters, April 16, 2021, November 20, 2021,weblink live, The company was ranked 143rd on the 2022 Fortune 500 of the largest United States corporations by revenue.WEB,weblink Fortune 500 Companies 2021, fortune.com, June 23, 2022, March 10, 2022,weblink live, Since 2023 PayPal is a member of the MACH Alliance.WEB, PayPal,weblink MACH Alliance Announces PayPal is the First Company to Join New Supporter Membership Category, 2023-06-29, PayPal, en, 2024-01-09, History{{For timeline}}Early historyThe company was originally established by Max Levchin, Peter Thiel, and Luke Nosek in December 1998 as Fieldlink, later renamed Confinity,WEB,weblink How the 'PayPal Mafia' redefined success in Silicon Valley, Forrest, Conner, June 30, 2014, TechRepublic, November 11, 2014, November 4, 2014,weblink" title="web.archive.org/web/20141104145525weblink">weblink live, a company that developed security software for hand-held devices.WEB,weblink Timeline: The rise of PayPal, Mark, Odell, Financial Times, 30 September 2014, 10 October 2023, Having had no success with that business model, however, it switched its focus to a digital wallet.WEB,weblink What PayPal's Rocky Beginnings Can Teach You About Startup Success, Cohan, Peter S., September 5, 2013, Entrepreneur Magazine, 11 November 2014, November 12, 2014,weblink" title="web.archive.org/web/20141112035042weblink">weblink live, The first version of the PayPal electronic payments system was launched in 1999.WEB,weblink History of PayPal Inc. – FundingUniverse, November 12, 2014, November 11, 2020,weblink" title="web.archive.org/web/20201111223511weblink">weblink live, In March 2000, Confinity merged with X.com, an online financial services company founded in March 1999 by Elon Musk, Harris Fricker, Christopher Payne, and Ed Ho.WEB,weblink Reid Hoffman On PayPal's Pivoted Path To Success, Penenberg, Adam L., August 9, 2012, Fast Company, November 11, 2014, November 12, 2014,weblink" title="web.archive.org/web/20141112041416weblink">weblink live, Musk was optimistic about the future success of the money transfer business Confinity was developing.BOOK, Jackson, Eric M.,weblink The PayPal Wars: Battles with EBay, the Media, the Mafia and the Rest of Planet Earth, 2006, WND Books, 978-0-9778984-3-5, en, Musk and Bill Harris, then-president and CEO of X.com, disagreed about the potential future success of the money transfer business and Harris left the company in May 2000.BOOK, Gardner, James A.,weblink Innovation and the Future Proof Bank: A Practical Guide to Doing Different Business-as-Usual, 2011-04-20, John Wiley & Sons, 978-0-470-68521-1, en, In October of that year, Musk decided that X.com would terminate its other internet banking operations and focus on payments.BOOK,weblink The Startup Playbook: Secrets of the Fastest Growing Start-Ups from the founding Entrepreneurs, Kidder, David, Hoffman, Reid, Hindi, Hanny, Chronicle Books, 2012, 9781452105048, San Francisco, CA, 214–216, That same month, Elon Musk was replaced by Peter Thiel as CEO of X.com,WEB,weblink Why Elon Musk says taking 'vacations will kill you', Locke, Taylor, 2019-11-02, CNBC, en, 2020-03-31, September 1, 2021,weblink live, which was renamed PayPal in June 2001 and went public in 2002.WEB,weblink Where Are They Now? The PayPal "Mafia" Is More Powerful Than Ever, Rosoff, Matt, November 12, 2011, Business Insider, 11 November 2014, October 12, 2014,weblink" title="web.archive.org/web/20141012141949weblink">weblink live, NEWS,weblink EBay follows Icahn's advice, plans PayPal spinoff in 2015, SEETHARAMAN, DEEPA, MUKHERJEE, SUPANTHA, 30 September 2014, Reuters, 11 November 2014, January 2, 2016,weblink" title="web.archive.org/web/20160102221610weblink">weblink live, WEB,weblink Elon Musk now owns X.com, the defunct domain of his second startup, Statt, Nick, 2017-07-10, The Verge, en, 2020-03-31, June 25, 2020,weblink live, PayPal's IPO listed under the ticker PYPL at $13 per share and generated over $61 million.WEB,weblink PayPal IPO Off to Spectacular Start, Keith Regan, 15 February 2002, ECommerce Times, 11 November 2014, September 7, 2020,weblink live,eBay subsidiary (2002–2014)Shortly after PayPal's IPO, the company was acquired by eBay on October 3, 2002,WEB,weblink eBay 2002 Annual Report, January 12, 2021, October 26, 2020,weblink live, for $1.5 billion in eBay stock.NEWS, Kane, Margaret, eBay picks up PayPal for $1.5 billion,weblink July 8, 2002, CNET News.com, CNET Networks, November 13, 2007, June 10, 2022,weblink" title="web.archive.org/web/20220610061605weblink">weblink dead, MAGAZINE,weblink UNFINISHED BUSINESS: MAX LEVCHIN'S QUEST TO BUILD THE NEXT PAYPAL, Austin Carr, 16 October 2014, Fast Company, 11 November 2014, More than 70 percent of all eBay auctions accepted PayPal payments, and roughly 1 in 4 closed auction listings were transacted via PayPal.NEWS,weblink How eBay's purchase of PayPal changed Silicon Valley, Venturebeat, Venture Beat, October 27, 2012, October 28, 2012, October 28, 2012,weblink" title="web.archive.org/web/20121028170929weblink">weblink live, PayPal became the default payment method used by the majority of eBay users, and the service competed with eBay's subsidiary Billpoint, as well as Citibank's c2it, Yahoo!'s PayDirect, and Google Checkout.In 2005, PayPal acquired the VeriSign payment solution to provide added security support.WEB,weblink Eyeing Expansion of PayPal, eBay Buys VeriSign Payment Gateway, Keith Regan, 11 October 2005, ECommerce Times, 11 November 2014, October 25, 2020,weblink live, In 2007, PayPal announced a partnership with MasterCard, which led to the development and launch of the PayPal Secure Card service, a software that allows customers to make payments on websites that do not accept PayPal directly.NEWS,weblink PayPal offers secure way to shop non-PayPal sites, Eric Auchard, 19 November 2007, Reuters, 11 November 2014, September 22, 2021,weblink live, By the end of 2007, the company generated $1.8 billion in revenue.WEB,weblink What PayPal does with your money, Lenora Chu, 26 February 2008, CNN Money, 11 November 2014, November 9, 2020,weblink live, In January 2008, PayPal acquired Fraud Sciences, a privately held Israeli start-up that developed online risk tools, for $169 million.NEWS,weblink eBay Acquires Fraud Sciences For $169 Million, Peter Ha, 28 January 2008, TechCrunch, 11 November 2014, November 27, 2018,weblink live, WEB,weblink PayPal Buys Fraud Sciences for $169 Million – New York Times, Kirk, Jeremy, Bureau, IDG News ServiceLondon, archive.nytimes.com, 31 March 2020, IDG, September 6, 2020,weblink live, In November 2008, the company acquired Bill Me Later, an online transactional credit company.WEB,weblink EBay Buys Bill Me Later for Nearly $1 Billion, MIKE HOFMAN, 7 October 2008, Inc Magazine, 11 November 2014, November 12, 2014,weblink" title="web.archive.org/web/20141112053835weblink">weblink live, By 2010, PayPal had over 100 million active user accounts in 190 markets through 25 different currencies.BOOK, Gale Encyclopedia of E-Commerce, 2nd Edition, Gale, June 2012, 9781414490465, In July 2011, fourteen alleged members of the Anonymous hacktivist group were charged with attempting to disrupt PayPal's operations. The denial of service attacks occurred in December 2010, after PayPal stopped processing donations to WikiLeaks. On 5 December 2013, 13 of the PayPal 14 pleaded guilty to misdemeanor and felony charges related to the attacks.NEWS,weblink David Gilbert, PayPal 14 'Freedom Fighters' Plead Guilty to Cyber-Attack, International Business Times, 6 December 2013, December 9, 2013, December 9, 2013,weblink" title="web.archive.org/web/20131209025021weblink">weblink live, WEB,weblink Steven Musil, Anonymous hackers plead guilty to 2010 PayPal cyberattack, Cnet, 8 December 2013, December 9, 2013, December 11, 2013,weblink" title="web.archive.org/web/20131211005617weblink">weblink live, The company continued to build its Merchant Services division, providing e-payments for retailers on eBay. In 2011, PayPal announced that it would begin moving its business offline so that customers can make payments via PayPal in stores.Verne Kopytoff, The New York Times. "PayPal Prepares to Expand Offline {{Webarchive|url=https://web.archive.org/web/20111024094217weblink |date=October 24, 2011 }}", 15 September 2011. Retrieved 16 September 2011. In August 2012, the company announced its partnership with Discover Card to allow PayPal payments to be made at any of the seven million stores in the Discover network.WEB,weblink Discover And PayPal Join Forces In The War Against Paper Money, Banks, Chris Barth, 22 August 2012, Forbes, 11 November 2014, October 30, 2020,weblink live, By the end of 2012, PayPal's total payment volume processed was {{USD|145 billion}}.About PayPal – PayPal {{Webarchive|url=https://web.archive.org/web/20130115041302weblink |date=January 15, 2013 }}. Paypal-media.com. Retrieved 12 August 2013. and accounted for 40% of eBay's revenue, amounting to {{USD|1.37 billion}} in the 3rd quarter of 2012.In 2013, PayPal acquired IronPearl, a Palo Alto startup offering engagement software,NEWS,weblink PayPal buys young startup Iron Pearl to help it acquire more users, Sean Ludwig, 11 April 2013, VentureBeat, 11 November 2014, October 24, 2020,weblink live, and Braintree, a Chicago-based payment gateway, to further product development and mobile services.NEWS,weblink EBay's PayPal Acquires Payments Gateway Braintree For $800M In Cash, Leena Rao, 26 September 2013, TechCrunch, 11 November 2014, July 5, 2017,weblink live, In June 2014 David Marcus announced he was leaving his roleNEWS,weblink PayPal President David Marcus Is Stepping Down To Join Facebook, Jillian D'Onfro, Business Insider, June 9, 2014, July 2, 2014, November 30, 2018,weblink live, as PayPal President; Marcus joined PayPal in August 2011 after its acquisition of Zong, of which he was the founder and CEO.NEWS, Tricia Duryee, AllThingsD.com,weblink eBay Promotes David Marcus to Fill Top Vacancy at PayPal, March 29, 2012, October 14, 2012, Dow Jones & Company, Dow Jones, October 13, 2012,weblink" title="web.archive.org/web/20121013051945weblink">weblink live, David Marcus succeeded Scott Thompson as president, who left the role to join Yahoo. PayPal announced that Marcus would be succeeded by Dan Schulman, who previously served as CEO of Virgin Mobile and Executive vice president of American Express.WEB,weblink Meet PayPal CEO-to-be Schulman: Homelessness exercise as a management tool, Cromwell Schubarth, 30 September 2014, Silicon Valley Business Journal, 11 November 2014, November 12, 2014,weblink" title="web.archive.org/web/20141112072012weblink">weblink live,Spin-off from eBay (2014–present)It was announced on September 30, 2014, that eBay would spin off PayPal into a separate publicly traded company, a move demanded in 2013 by activist hedge fund magnate Carl Icahn. The spin-off was completed on July 18, 2015.NEWS, De La Merced, Michael, Sorkin, Andrew, EBay to Spin Off PayPal, Adopting Strategy Backed by Icahn,weblink The New York Times, September 30, 2014, 30 September 2014, November 14, 2020,weblink live, NEWS, Mukherjee, Supantha, EBay follows Icahn's advice, plans PayPal spinoff in 2015,weblink Reuters, 30 September 2014, January 2, 2016,weblink" title="web.archive.org/web/20160102221610weblink">weblink live, WEB, Cheng, Roger, eBay, PayPal to split into separate companies in 2015,weblink CNET, 30 September 2014, June 12, 2018,weblink live, Dan Schulman is the current president and CEO, with former eBay CEO John Donahoe serving as chairman. On January 31, 2018, eBay announced that "After the existing eBay-PayPal agreement ends in 2020, PayPal will remain a payment option for shoppers on eBay, but it won't be prominently featured ahead of debit and credit card options as it is today. PayPal will cease to process card payments for eBay at that time." The company will "instead begin working with Amsterdam-based Adyen".NEWS,weblink After 15 years, eBay plans to cut off PayPal as its main payments processor, Del Rey, Jason, January 31, 2018, Recode, 2018-02-28, February 1, 2018,weblink live, On July 1, 2015, PayPal announced that it was acquiring digital money transfer company Xoom Corporation. PayPal spent $25 a share in cash to acquire the publicly traded Xoom, or about $1.09 billion. The deal was closed in the fourth quarter of 2015. The move strengthened PayPal’s international business, giving it access to Xoom’s 1.3 million active U.S. customers that sent about $7 billion in the 12 months ending on March 31, to people in 37 countries.WEB, PayPal acquires money transfer firm Xoom for $890 million,weblink Fortune, 2016-02-11, March 8, 2016,weblink" title="web.archive.org/web/20160308090216weblink">weblink live, NEWS, PayPal Acquires Xoom for Stake in Digital Money Transfers,weblink The New York Times, 2015-07-01, 2016-02-11, 0362-4331, Nick, Wingfield, July 9, 2017,weblink live, On September 1, 2015, PayPal launched its peer-to-peer payment platform "PayPal.Me", a service that allows users to send a custom link to request funds via text, email, or other messaging platforms.WEB, Perez, Sarah, PayPal Launches PayPal.Me, A Simpler Way To Request Money Using Your Own Personalized URL,weblink Tech Crunch, September 2015, 1 September 2015, January 21, 2019,weblink live, Custom links are set to be structured as PayPal.me/username/amount requested. PayPal.Me was launched in 18 countries including the United States, United Kingdom, Germany, Australia, Canada, Russia, Turkey, France, Italy, Spain, Poland, Sweden, Belgium, Norway, Denmark, Netherlands, Austria and Switzerland.WEB, Brian, Matt, PayPal makes it even easier to call in your debts,weblink engadget, September 2015, 1 September 2015, January 21, 2019,weblink live, PayPal had 170 million users, as of September 2015, and the focus of PayPal.Me was to create a mobile-first user experience that enables faster payment sharing than PayPal's traditional tools.On May 17, 2018, PayPal agreed to purchase Swedish payment processor iZettle for $2.2 billion. This was PayPal's largest acquisition until late November 2019 and the company claims that it is the in-store expertise and digital marketing strength that will complement its own online and mobile payment services.NEWS,weblink PayPal acquires Swedish payments firm iZettle, 2018-05-17, BBC News, 2018-05-18, July 7, 2018,weblink live, On March 19, 2019, PayPal announced its partnership with Instagram as part of the company's new checkout feature, "Checkout on Instagram".WEB,weblink PayPal Powers Instagram Checkout, 2019-03-19, PYMNTS.com, 2019-03-24, October 22, 2020,weblink live, WEB,weblink Shopping on Instagram, Ready, Bill, March 19, 2019, www.paypal.com, 2019-03-24, March 24, 2019,weblink live, In June 2019, PayPal reported that Chief Operating Officer Bill Ready would be leaving the company at the end of the year, transitioning into the role of commerce chief for Google.WEB,weblink PayPal's exiting COO Bill Ready to join Google as its new president of Commerce, TechCrunch, December 11, 2019, en-US, 2019-12-11, In October 2019, PayPal reported a loss of $228 million on investments, largely due to a failed return from a $500 million investment in Uber.WEB,weblink PayPal is investing $500 million into Uber as part of the ride-hailing firm's $90 billion IPO, Ghosh, Shona, Business Insider, 7 May 2019, May 15, 2023,weblink live, WEB, Verhage, Julie, PayPal Writes Down $228 Million on Investments After Uber,weblink Bloomberg News, Bloomberg, October 8, 2019, May 15, 2023, February 2, 2022,weblink live, On January 6, 2020, PayPal acquired Honey for over $4 billion. This is PayPal's largest acquisition to date.PRESS RELEASE,weblink PayPal Completes Acquisition of Honey, PayPal Holdings, Inc, www.prnewswire.com, It more recently signed a deal with NBCUniversal.WEB, E-commerce comes to TV as NBCU signs deal with PayPal {{!, WARC|url=http://origin.warc.com/newsandopinion/news/e-commerce-comes-to-tv-as-nbcu-signs-deal-with-paypal/44342|access-date=2020-11-12|website=origin.warc.com|language=en|archive-date=January 23, 2021|archive-url=https://web.archive.org/web/20210123143120weblink|url-status=live}}In June 2020, PayPal announced a $530 million commitment to support Black-owned businesses and minority communities in the United States.WEB, Sorkin, Andrew Ross, Karaian, Jason, Merced, Michael J. de la, Hirsch, Lauren, Livni, Ephrat, PayPal Invests in Racial Equality,weblink The New York Times, 11 February 2021, 28 October 2020, May 15, 2023,weblink live, In January 2021, PayPal became the first foreign operator with 100% control of a payment platform in China, gaining an advanced position in the local online payment market.NEWS, Samuel Shen and Andrew Galbraith, 2021-01-14, PayPal becomes first foreign firm in China with full ownership of payments business, en, Reuters,weblink 2021-01-14, January 14, 2021,weblink live, In an international survey conducted in March 2021 by Morning Consult, PayPal was found to be the second most trusted brand globally.WEB, Liederman, Emmy, April 20, 2021, Tech Brands Like Google Are Leading Consumer Trust,weblink 2021-05-20, ADWeek, en-US, May 20, 2021,weblink live, In June 2022, Shopify partnered with PayPal to offer Shopify Payments to merchants in France.WEB, 2022-06-28, Shopify s'allie à PayPal pour lancer sa propre solution de paiement,weblink 2023-03-10, Les Echos (France), Les Echos, fr, March 10, 2023,weblink live, WEB, Shopify Payments Terms of Service - France,weblink 2023-03-10, Shopify, en, March 10, 2023,weblink live, In February 2023, PayPal announced layoffs for 2,000 of its workers, or 7% of its total workforce.NEWS,weblink Tech layoffs: PayPal cuts 2,000 jobs as global economy weakens, February 2023, BBC News, February 1, 2023, February 1, 2023,weblink live, It was reported in February 2023, that CEO Dan Schulman will step away from his role by the end of 2023. Schulman will continue to serve on the board of directors after vacating the position.NEWS, 2023-02-09, PayPal CEO Dan Schulman to Retire at Year-End as Growth Slows, en, Bloomberg.com,weblink 2023-02-13, In August 2023, the company named Intuit executive Alex Chriss CEO, effective September 27, 2023.NEWS, 2023-08-14, PayPal Names Intuit's Alex Chriss CEO, Replacing Schulman, en, Bloomberg.com,weblink 2023-08-14, In August 2023, PayPal launched a U.S. dollar stablecoin, called PayPal USD (PYUSD) for payments and transfers.NEWS, Shekhawat, Jaiveer, Lang, Hannah, August 7, 2023, PayPal launches dollar-backed stablecoin, boosting shares,weblink Reuters, In November 2023, it was announced that the SEC launched a legal investigation into both PayPal and Paxos, the trust responsible for issuing the stablecoin.WEB, Smith, Sean Stein, What Crypto Investors Should Watch As The SEC Investigates PayPal,weblink 2023-11-13, Forbes, en, Paypal said it was cooperating with the subpoena from the SEC’s Enforcement Division.WEB, PayPal discloses it was subpoenaed by the SEC over recently launched stablecoin,weblink 2023-11-13, Fortune Crypto, en, In October 2023, it was announced PayPal has sold its reverse logistics subsidiary, Happy Returns to UPS for an undisclosed amount.WEB, 2023-10-25, UPS Acquires Happy Returns,weblink 2023-10-26, The Business of Fashion, en, In 2024, PayPal execs announce the company aim to revive growth in their branded checkout products amidst increased competition from big tech, following an upward revision of the full-year profit forecast.WEB, April 30, 2024, PayPal lifts 2024 profit forecast, execs focus on branded checkout growth,weblink WEB, Saini 1 Shekhawat 2, Manya 1 Jaiveer2, May 1, 2024, PayPal lifts 2024 profit forecast, execs focus on branded checkout growth,weblink Reuters,Acquisitions {| class"wikitable sortable"!Acquisition date!Company!Price!Refs | |||||||
| TITLE=PAYPAL TO BUY FRAUD SCIENCES | PUBLISHER=REUTERS | DATE=28 JANUARY 2008 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20200907192056/HTTPS://WWW.REUTERS.COM/ARTICLE/US-PAYPAL-FRAUDSCIENCES/PAYPAL-TO-BUY-FRAUD-SCIENCES-IDUSWNAS794520080128, live, | |||||||||||||
| PayPal Credit>Bill Me Later |$945M | DATE=2008-10-06 | ACCESS-DATE=2017-06-30 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20180919173140/HTTPS://FINOVATE.COM/EBAY_ACQUIRES_BILL_ME_LATER_FOR_ALMOST_1_BILLION/, live, | |||||||||||||
| last=Rao | date=April 20, 2011 | archive-date=October 7, 2019 | weblink>url-status=live}} | |||||||||||||
| last=Rao | date=April 29, 2011 | archive-date=September 24, 2016 | weblink>url-status=live}} | |||||||||||||
| Zong mobile payments>Zong|$240M | LAST=MCMAHAN | DATE=2011-07-07 | THE WALL STREET JOURNAL>ACCESS-DATE=2017-06-30 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20170906013318/HTTPS://BLOGS.WSJ.COM/VENTURECAPITAL/2011/07/07/EBAYS-ZONG-DEAL-MOBILE-PAYMENTS-ARE-ALL-FUN-GAMES/, live, | ||||||||||||
| TITLE=PAYPAL ACQUIRES CARD.IO MOBILE PAYMENT SERVICE | PUBLISHER=THE VERGE | DATE=17 JULY 2012 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20200906200741/HTTPS://WWW.THEVERGE.COM/2012/7/17/3165825/PAYPAL-CARD-IO-OPTICAL-MOBILE-PAYMENT, live, | |||||||||||||
| TITLE=EBAY'S PAYPAL ACQUIRES IRONPEARL TO FUEL GROWTH BEYOND 123M USERS | NEWSPAPER=TECHCRUNCH | DATE=12 APRIL 2013 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20191216110809/HTTP://TECHCRUNCH.COM/2013/04/11/EBAY-PAYPAL-IRONPEARL/ | PUBLISHER=EBAY | >ACCESS-DATE=20 JANUARY 2020 | ARCHIVE-DATE=SEPTEMBER 5, 2020 | URL-STATUS=LIVE, | |||||||||
| Braintree (company)>Braintree|$800M | LAST2=PEREZ | LAST3=LUNDEN | DATE=26 SEPTEMBER 2013 | URL=HTTPS://TECHCRUNCH.COM/2013/09/26/PAYPAL-ACQUIRES-PAYMENTS-GATEWAY-BRAINTREE-FOR-800M-IN-CASH/ | TECHCRUNCH >QUOTE=IN ADDITION, BRAINTREE OPERATES VENMO, A MOBILE PAYMENTS SOLUTION THE COMPANY ACQUIRED LAST YEAR | ARCHIVE-DATE=JULY 5, 2017 | URL-STATUS=LIVE, MAVADIYA >FIRST1=MADHVI | URL=HTTPS://WWW.FORBES.COM/SITES/MADHVIMAVADIYA/2018/05/18/PAYPAL-ACQUISITIONS-FINTECH/#663E22632002 | FORBES >ACCESS-DATE=JANUARY 20, 2020 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20200119192035/HTTPS://WWW.FORBES.COM/SITES/MADHVIMAVADIYA/2018/05/18/PAYPAL-ACQUISITIONS-FINTECH/#663E22632002 | TITLE=PAYPAL SPENDS $800M TO ACQUIRE THE STARTUP THAT ACCUSED IT OF SCREWING CUSTOMERS | PUBLISHER=THE VERGE | DATE=26 SEPTEMBER 2013 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20191012154254/HTTPS://WWW.THEVERGE.COM/2013/9/26/4772894/PAYPAL-ACQUIRES-BRAINTREE, live, | ||
| TITLE=PAYPAL BUYS STACKMOB TO CONTINUE MOBILE PAYMENT PUSH | WORK=FORBES | DATE=17 DECEMBER 2013 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20210126062952/HTTPS://WWW.FORBES.COM/SITES/STEVENBERTONI/2013/12/17/PAYPAL-BUYS-STACKMOB-TO-CONTINUE-MOBILE-PAYMENT-PUSH/#E231429522C5, live, | |||||||||||||
| TITLE=PAYPAL IS GOING TO BUY THE STARTUP BEHIND WAL-MART'S APPLE PAY COMPETITOR FOR $280 MILLION | PUBLISHER=BUSINESS INSIDER | DATE=2 MARCH 2015 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20200905134211/HTTPS://WWW.BUSINESSINSIDER.IN/TECH/PAYPAL-IS-GOING-TO-BUY-THE-STARTUP-BEHIND-WAL-MARTS-APPLE-PAY-COMPETITOR-FOR-280-MILLION/ARTICLESHOW/46434967.CMS, live, | |||||||||||||
| TITLE=PAYPAL DOUBLES DOWN ON ISRAEL: CONFIRMS CYACTIVE ACQUISITION, NEW SECURITY HUB | PUBLISHER=TECHCRUNCH | DATE=10 MARCH 2015 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20200812141630/HTTPS://TECHCRUNCH.COM/2015/03/10/PAYPAL-CONFIRMS-ACQUISITION-OF-CYACTIVE-PLANS-TO-OPEN-NEW-SECURITY-HUB-IN-ISRAEL/ | TITLE=PAYPAL MAKES ACQUISITION OF CYACTIVE OFFICIAL | WEBSITE=PAYPAL STORIES | ACCESS-DATE=20 JANUARY 2020 | ARCHIVE-DATE=SEPTEMBER 7, 2020 | URL-STATUS=LIVE, | ||||||||
| TITLE=PAYPAL AGREES TO BUY XOOM FOR $890 MILLION | URL=HTTPS://TECHCRUNCH.COM/2015/07/01/PAYPAL-AGREES-TO-BUY-XOOM-FOR-890-MILLION/ | TECHCRUNCH >ACCESS-DATE=JANUARY 20, 2020 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20191217012052/HTTP://TECHCRUNCH.COM/2015/07/01/PAYPAL-AGREES-TO-BUY-XOOM-FOR-890-MILLION/ | WEBSITE=PAYPAL INVESTOR RELATIONS | ACCESS-DATE=20 JANUARY 2020 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20200904125526/HTTPS://INVESTOR.PAYPAL-CORP.COM/NEWS-RELEASES/NEWS-RELEASE-DETAILS/PAYPAL-COMPLETES-ACQUISITION-XOOM, dead, | ||||||||||
| TITLE=PAYPAL ACQUIRES MODEST | WEBSITE=PAYPAL STORIES | ACCESS-DATE=20 JANUARY 2020 | ARCHIVE-DATE=AUGUST 5, 2020 | URL-STATUS=LIVE, | ||||||||||||
| TITLE=PAYPAL BUYS TIO NETWORKS FOR $233 MILLION | URL=HTTPS://TECHCRUNCH.COM/2017/02/14/PAYPAL-BUYS-TIO-NETWORKS-FOR-233-MILLION/ | TECHCRUNCH >ACCESS-DATE=20 JANUARY 2020 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20190629215440/HTTPS://TECHCRUNCH.COM/2017/02/14/PAYPAL-BUYS-TIO-NETWORKS-FOR-233-MILLION/ | WEBSITE=PAYPAL STORIES | ACCESS-DATE=20 JANUARY 2020 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20191207104446/HTTPS://WWW.PAYPAL.COM/STORIES/US/PAYPAL-COMPLETES-ACQUISITION-OF-TIO-NETWORKS, live, | ||||||||||
| DATE=2017-08-14 | ACCESS-DATE=2017-08-15 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20180919173346/HTTPS://NEWSCENTER.IO/2017/08/PAYPAL-ACQUIRES-SWIFT-FINANCIAL-UNDISCLOSED-SUM/, live, | ||||||||||||||
| WEBSITE=YAHOO FINANCE | ACCESS-DATE=FEBRUARY 17, 2022 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20220217161721/HTTPS://FINANCE.YAHOO.COM/NEWS/PAYPAL-PYPL-ACQUIRES-JETLORE-STRENGTHENS-141002491.HTML, live, | ||||||||||||||
| LAST=BARY | WORK=MARKETWATCH | ARCHIVE-DATE=JUNE 22, 2018 | URL-STATUS=LIVE, | |||||||||||||
| WEBSITE=WWW.PAYPAL.COM | ARCHIVE-DATE=JUNE 22, 2018 | URL-STATUS=LIVE, | ||||||||||||||
| DATE=30 SEPTEMBER 2019 | URL=HTTPS://VENTUREBEAT.COM/2019/09/30/PAYPAL-TO-BE-THE-FIRST-FOREIGN-ONLINE-PAYMENT-PLATFORM-IN-CHINA-AFTER-ACQUIRING-70-STAKE-IN-GOPAY/ | VENTUREBEAT >ACCESS-DATE=2019-10-01 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20191001104540/HTTPS://VENTUREBEAT.COM/2019/09/30/PAYPAL-TO-BE-THE-FIRST-FOREIGN-ONLINE-PAYMENT-PLATFORM-IN-CHINA-AFTER-ACQUIRING-70-STAKE-IN-GOPAY/, live, | |||||||||||||
| Honey (company)>Honey|$4B | WEBSITE=WWW.REUTERS.COM | ACCESS-DATE=2019-11-22 | ARCHIVE-URL=HTTPS://WEB.ARCHIVE.ORG/WEB/20191121083345/HTTPS://WWW.REUTERS.COM/ARTICLE/US-HONEYSCIENCECORP-M-A-PAYPAL-HLDG/PAYPAL-TO-BUY-REWARDS-PLATFORM-HONEY-SCIENCE-FOR-4-BILLION-IDUSKBN1XU2OX, live, | |||||||||||||
| WEBSITE=PAYPAL NEWSROOM | ARCHIVE-DATE=MARCH 15, 2021 | URL-STATUS=LIVE, | ||||||||||||||
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| WEBSITE=PAYPAL NEWSROOM | ARCHIVE-DATE=JUNE 20, 2021 | URL-STATUS=LIVE, | ||||||||||||||
| ACCESS-DATE=23 SEPTEMBER 2021 | TECHCRUNCH >ARCHIVE-DATE=SEPTEMBER 22, 2021 | URL-STATUS=LIVE, | ||||||||||||||
Finances {| class"wikitable floatright"TITLEPAYPAL HOLDINGS, INC.: SHAREHOLDERS BOARD MEMBERS MANAGERS AND COMPANY PROFILE {{!, US70450Y1038 {{!}} MarketScreener |urweblink |access-date2024-03-24 |websitewww.marketscreener.com |languageen}}
!Region!shareOffices
File:PayPal Headquarters.jpg|thumb|PayPal Operations Center in La Vista, NebraskaLa Vista, NebraskaPayPal's corporate headquarters are located in the North San Jose Innovation District of San Jose, California,{{Citation |author=Diana Samuels |date=October 29, 2012 |title=PayPal lays off 325 in effort to speed innovation |periodical=San Jose Business Journal |at=bizjournals.com |url=http://www.bizjournals.com/sanjose/blog/2012/10/paypal-lays-off-325-in-effort-to-speed.html |access-date=October 30, 2012 |archive-date=September 10, 2020 |archive-url=https://web.archive.org/web/20200910230723weblink |url-status=live }} at North First Street campus.WEB,weblink Fast-growing eBay spreads out in North San Jose, Nathan Donato-Weinstein, 30 January 2013, San Jose Business Journal, 11 November 2014, November 12, 2014,weblink" title="web.archive.org/web/20141112071703weblink">weblink live, The company's operations center is located in La Vista, Nebraska, which was opened in 1999.WEB,weblink PayPal center in LaVista moves online payments worldwide, Josh Funk, 24 June 2007, JournalStar, 11 November 2014, August 5, 2018,weblink live, Virgil Larson, "Local building, global growth: PayPal opens facility, plans to expand staff to keep up with business", Omaha World-Herald, March 8, 2007, 1D. Since July 2007, PayPal has operated across the European Union as a Luxembourg-based bank. The PayPal European headquarters are located in Luxembourg and the international headquarters are in Singapore. PayPal opened a technology center in Scottsdale, Arizona in 2006,WEB,weblink eBay CEO Meets with Arizona Governor over PayPal Tech Center, auctionbytes.com, September 27, 2007, March 1, 2012, July 20, 2009,weblink" title="web.archive.org/web/20090720011259weblink">weblink live, and a software development center in Chennai, India in 2007.WEB,weblink eBay, PayPal Open Development Facility in Chennai, efytimes.com, November 5, 2007, March 1, 2012,weblink" title="web.archive.org/web/20151017051010weblink">weblink October 17, 2015, dead, In October 2007, PayPal opened a data service office on the north side of Austin, Texas,NEWS,weblink PayPal open for business, 19 October 2007, Austin Business Journal, 11 November 2014, November 12, 2014,weblink" title="web.archive.org/web/20141112070030weblink">weblink live, and also opened a second operations center in La Vista, Nebraska that same year. In 2011, joining similar customer support operations located in Berlin, Germany; Chandler, Arizona; Dublin and Dundalk, Ireland; Omaha, Nebraska; and Shanghai, China; PayPal opened a second customer support center in Kuala Lumpur, Malaysia, and began the hiring process.WEB, Cheon-Fong, Liew, New PayPal Office in Kuala Lumpur, Malaysia (and Hiring!),weblinkweblink" title="web.archive.org/web/20110117120724weblink">weblink dead, 17 January 2011, LiewCF, 26 April 2016, In 2014, PayPal opened a new global center of operations in Kuala Lumpur.WEB, Grand Opening Ceremony – PayPal Global Operations Centre [sic] in Malaysia,weblink glassdoor.co.in, 18 Mar 2014, April 26, 2016, May 13, 2016,weblink live,Services
PayPal's services allow people to make financial transactions online by granting the ability to transfer funds electronically between individuals and businesses.WEB,weblink How PayPal Works, Grabianowski, Ed, Crawford, Stephanie, December 13, 2005, How Stuff Works, 23 November 2014, November 13, 2006,weblink" title="web.archive.org/web/20061113052400weblink">weblink live, Through PayPal, users can send or receive payments for online auctions on websites like eBay, purchase or sell goods and services, or donate money or receive donations. It is not necessary or required to have a PayPal account to use the company's services. Certain packaging may come with tracking numbers. PayPal account users can set currency conversion option in account settings.WEB,weblink How to Convert Money in PayPal, smallbusiness.chron.com, en, 2020-02-19, September 7, 2020,weblink live, The PayPal app is available online or at the iTunes App Store and Google Play. One year after acquiring Braintree, PayPal introduced its "One Touch" service, which allows users to pay with a one-touch option on participating merchants websites or apps.WEB,weblink PayPal Introduces One-Touch Mobile Payments, Thanks to Braintree and Venmo, Jason Del Rey, 19 August 2014, Recode, 23 November 2014, November 22, 2014,weblink" title="web.archive.org/web/20141122235530weblink">weblink live, In 2007, PayPal acquired the online credit product Bill Me Later, Inc.,WEB, Ebay Spends More Than $1.2 Billion To Buy Bill Me Later And DBA.dk, And Lays Off 10% Of Employees,weblink 2020-09-21, TechCrunch, October 6, 2008, en-US, which has since been rebranded as PayPal Credit and provided services for Comenity Capital Bank, the lender of PayPal Credit accounts. Founded in 2000, Bill Me Later is headquartered in Timonium, Maryland.WEB, 2008-10-06, eBay Inc. adds Bill Me Later to Portfolio,weblink 2020-09-21, www.ebayinc.com, en-US, October 1, 2020,weblink live, PayPal Credit offers shoppers access to an instant online revolving line of credit at thousands of vendors that accept PayPal, subject to credit approval. PayPal Credit allows consumers to shop online in much the same way as they would with a traditional credit card. The rebranding of Bill Me Later as PayPal Credit also means that consumers can use PayPal Credit to fund transactions virtually anywhere PayPal is accepted.WEB,weblink Bill Me Later, 5 September 2015, March 18, 2015,weblink live, In 2015 PayPal agreed that PayPal Credit would pay a $25 million fine to settle a complaint filed in Federal Court by the Consumer Financial Protection Bureau.COURT, Consumer Financial Protection Bureau v. Paypal Inc., and Bill Me Later, Inc., Case 1:15-cv-01426-RDB, Stipulated Final Judgment and Order, United States District Court for the District of Maryland, 05/21/2015,weblink From 2009 to 2016, PayPal operated Student Accounts, allowing parents to set up a student account, transfer money into it, and obtain a debit card for student use. The program provided tools to teach how to spend money wisely and take responsibility for actions.PayPal Creates Student Accounts for Teens {{Webarchive|url=https://web.archive.org/web/20110511110505weblink |date=May 11, 2011 }}. Retrieved October 23, 2010.NEWS,weblink PayPal Brings Allowances Into the 21st Century, Brad Stone, 1 December 2008, The New York Times, 23 November 2014, November 29, 2014,weblink" title="web.archive.org/web/20141129192935weblink">weblink live, PayPal discontinued Student Accounts in August 2016.In November 2009, PayPal partially opened its platform, allowing other services to get access to more APIs and to use its infrastructure in order to enable peer-to-peer online transactions.WEB,weblink PayPal's (Partially) Open Platform to Usher in New Payment Models & Apps: Tech News and Analysis, GigaOM, November 3, 2009, January 20, 2011, January 2, 2011,weblink" title="web.archive.org/web/20110102142203weblink">weblink dead, On November 28, 2011, PayPal reported Black Friday brought record mobile engagement, including a 538% increase in global mobile payment volume when compared with Black Friday 2010.NEWS, PayPal Cyber Monday Mobile Payment Volume Up Over 500 Percent, TechCrunch, November 28, 2011,weblink June 25, 2017, July 9, 2017,weblink live, In 2012, the company launched "PayPal Here", a small business mobile payment system that includes a combination of a free mobile app and a small card-reader that plugs into a smart phone.WEB,weblink 'PayPal Here' Accepts Payments from iPhones, Emily Price, 15 March 2012, Mashable, 23 November 2014, December 19, 2014,weblink" title="web.archive.org/web/20141219022731weblink">weblink live, PayPal launched an updated app for iOS and Android in 2013 that expanded its mobile app capabilities by allowing users to search for local shops and restaurants that accept PayPal payments, order ahead at participating venues, and access their PayPal Credit accounts (formerly known as Bill Me Later).On October 21, 2020, PayPal announced a new service allowing customers to use cryptocurrencies to shop at 26 million merchants on the network starting in 2021. Paypal has been using Paxos Trust to provide the back end infrastructure allowing users to manage and trade cryptocurrencies in accordance to data privacy rules and financial regulations. Paxos has been in charge of acquiring the necessary regulatory approvals for Paypal to facilitate cryptocurrency assets. As part of the announcement, PayPal secured the first conditional cryptocurrency license from the New York State Department of Financial Services, which will allow customers to purchase cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.NEWS,weblink PayPal to allow cryptocurrency buying, selling and shopping on its network, Reuters, 2020-10-21, 2020-10-21, October 21, 2020,weblink live, NEWS, 2020-10-21, PayPal allows Bitcoin and crypto spending, en-GB, BBC News,weblink 2020-10-22, October 22, 2020,weblink live, NEWS, Castellanos, Sara, 2021-03-11, PayPal's Entry to Crypto Followed Long Buildup in Expertise, en-US, The Wall Street Journal,weblink 2021-03-20, 0099-9660, March 20, 2021,weblink live, In March 2022, PayPal introduced a flat-fee structure for cryptocurrency transactions under $200; transactions over $200 incur a 1.8% fee for purchases or sales up to $1,000, and 1.5% for any transaction amount greater than $1,000.WEB, Lejeune, Tristan, 2022-03-21, New fees for crypto transactions on PayPal, Venmo go into effect,weblink 2022-03-22, The Hill (newspaper), The Hill, en, March 22, 2022,weblink live, {{As of | 2022}}, PayPal operates in 202 markets and has 426 million active, registered accounts. PayPal allows customers to send, receive, and hold funds in 25 currencies worldwide.WEB,weblink PayPal's Q4 2021 Earnings Call, February 22, 2022, February 22, 2022,weblink live,Business model evolution
PayPal's success in users and volumes was the product of a three-phase strategy described by former eBay CEO Meg Whitman: "First, PayPal focused on expanding its service among eBay users in the US. Second, we began expanding PayPal to eBay's international sites. And third, we started to build PayPal's business off eBay."WEB,weblinkweblink" title="web.archive.org/web/20061116122051weblink">weblink dead, November 16, 2006, Wall Street Folly: eBay: Conference call transcript – 1/18/06, Wallstfolly.typepad.com, January 20, 2011,Phase 1
In the first phase, payment volumes were coming mostly from the eBay auction website. The system was very attractive to auction sellers, most of which were individuals or small businesses that were unable to accept credit cards, and for consumers as well. In fact, many sellers could not qualify for a credit card Merchant account because they lacked a commercial credit history. The service also appealed to auction buyers because they could fund PayPal accounts using credit cards or bank account balances, without divulging credit card numbers to unknown sellers. PayPal employed an aggressive marketing campaign to accelerate its growth, depositing $10 in new users' PayPal accounts.Phase 2
Until 2000, PayPal's strategy was to earn interest on funds in PayPal accounts. However, most recipients of PayPal credits withdrew funds immediately. Also, many senders funded their payments using credit cards, which cost PayPal roughly 2% of payment value per transaction.{{Citation needed|date=November 2017}}To solve this problem, PayPal tailored its product to cater more to business accounts. Instead of relying on interests earned from deposited funds, PayPal started relying on earnings from service charges. They offered seller protection to PayPal account holders, provided that they comply with reimbursement policies. For example, PayPal merchants are either required to retain a traceable proof of shipping to a confirmed address or to provide a signed receipt for items valued over $750.{{Citation needed|date=November 2017}}Phase 3
After fine-tuning PayPal's business model and increasing its domestic and international penetration on eBay, PayPal started its off-eBay strategy. This was based on developing stronger growth in active users by adding users across multiple platforms, despite the slowdown in on-eBay growth and low-single-digit user growth on the eBay site. A late 2003 reorganization created a new business unit within PayPal—Merchant Services—to provide payment solutions to small and large e-commerce merchants outside the eBay auction community. Starting in the second half of 2004, PayPal Merchant Services unveiled several initiatives to enroll online merchants outside the eBay auction community, including:- Lowering its transaction fee for high-volume merchants from 2.2% to 1.9% (while increasing the monthly transaction volume required to qualify for the lowest fee to $100,000)
- Encouraging its users to recruit non-eBay merchants by increasing its referral bonus to a maximum of $1,000 (versus the previous $100 cap)
- Persuading credit card gateway providers, including CyberSource and Retail Decisions USA, to include PayPal among their offerings to online merchants.
- Hiring a new sales force to acquire large merchants such as Dell, Apple's iTunes, and Yahoo! Stores, which hosted thousands of online merchants
- Reducing fees for online music purchases and other "micropayments"
- Launching PayPal Mobile, which allowed users to make payments using text messaging on their cell phones
Global reach
PayPal can be used in more than 200 countries/regions.WEB,weblink PayPal Global – All countries and markets – PayPal, PayPal, 28 March 2017, October 8, 2020,weblink live, Different countries have different conditions: Send only (Package Service allows sending only, valid in 97 countries), PayPal Zero (package suggests the possibility of enrollment, entry, and withdrawal of funds in foreign currency, but the user can not hold the balance PayPal account, operates in 18 countries), SRW Send – Receive – Withdrawal (the possibility of enrollment, input-output and the ability to keep your PayPal account balance in the currency and to transfer to the card when the user sees fit, operates in 41 countries) and Local Currency (SRW plus opportunity to conduct transactions in the local currency, 21 countries).China
In July 2017, PayPal announced a partnership with Baidu, to allow the Chinese firm‘s 100 million mobile wallet users to make payments to PayPal’s 17 million merchants through the Baidu service.WEB,weblink Baidu teams up with PayPal to take its Chinese mobile wallet global {{!, TechCrunch|last=Russell|first=Jon|date=July 27, 2017|access-date=2017-07-28|archive-date=July 28, 2017|archive-url=https://web.archive.org/web/20170728083905weblink|url-status=live}}Crimea
In January 2015, PayPal ceased operations in Crimea in compliance with international sanctions against Russia and Crimea.WEB,weblink TASS: Russia – PayPal system stops servicing clients in Crimea, TASS, 5 September 2015, February 13, 2015,weblink" title="web.archive.org/web/20150213131358weblink">weblink live,India
As of March 2011, PayPal has made changes to the User Agreement for Indian users to comply with Reserve Bank of India regulations.NEWS, PayPal follows RBI to restrict e-payment to Indian merchants,weblink 16 March 2014, The Economic Times, Jan 29, 2011, January 16, 2014,weblink" title="web.archive.org/web/20140116171723weblink">weblink live, The per transaction limit had been set to USD $3,000, since October 14, 2011. However, on July 29, 2013, PayPal increased the per transaction limit to USD $10,000.PayPal India Receiving Limit Increased To $10,000 Per Transaction! {{Webarchive|url=https://web.archive.org/web/20130801170721weblink |date=August 1, 2013 }}. CrazyEngineers. Retrieved on 2013-08-12. This brings the per transaction limit for India in line with the restrictions imposed by PayPal in most other countries.PayPal has disabled sending and receiving personal payments in India, thus forcing all recipients to pay a transaction fee.WEB,weblink Paypal Reversing Transactions of Indian Accounts, February 4, 2010, 5 September 2015, September 5, 2020,weblink" title="web.archive.org/web/20200905002311weblink">weblink live, PayPal plans to make India an incubation center for the company's employee engagement policies. In 2012, PayPal hired 120 people for its offices in Chennai and Bengaluru.NEWS, Sengupta, Devina, PayPal plans to hire 1,000 in India,weblink 16 March 2014, The Times of India, Jun 5, 2012, June 7, 2012,weblink" title="web.archive.org/web/20120607235805weblink">weblink live, On 8 November 2017, PayPal launched domestic operations under PayPal Payments Private Limited and now provides digital payment solutions for merchants and customers in India.NEWS,weblink PayPal launches domestic payments in India, @businessline, 2018-06-04, November 12, 2020,weblink live, As of 2020, Paypal supports the domestic card system RuPay and is planning to further integrate Unified Payment Interface (UPI) in collaboration with National Payments Corporation of India (NPCI).NEWS, Malik, Yuvraj,weblink US major PayPal set to launch UPI-based digital payments in India, 2020-02-24, Business Standard India, 2020-04-04, March 27, 2020,weblink live, PayPal now has the largest global engineering team in India outside of the US, which is spread over Bengaluru, Chennai and Hyderabad.NEWS, Agarwal, Surabhi,weblink PayPal CTO says in for the long haul in India, to back UPI soon, 2020-03-10, The Economic Times, 2020-04-04, January 4, 2021,weblink live,Israel and Palestinian Territories
PayPal is available in IsraelWEB,weblink List of country codes where PayPal available, September 15, 2016, September 12, 2016,weblink live, but is not available in the Palestinian territories. Nor can Palestinians working in the West Bank or Gaza access it but Israelis living in settlements in the West Bank can use PayPal. This decision has prompted Palestinian tech companies to seek a policy change from PayPal.WEB,weblink PayPal brushes-off request from Palestinian tech firms to access the platform, September 10, 2016, September 15, 2016, May 24, 2017,weblink live,Japan
In late March 2010, new Japanese banking regulations forced PayPal Japan to suspend the ability of personal account holders registered in Japan from sending or receiving money between individuals and as a result are now subject to PayPal's business fees on all transactions.Martyn Williams, PayPal to halt some remittance services in Japan {{Webarchive|url=https://web.archive.org/web/20140822040206weblink |date=August 22, 2014 }}, Compuserve, 30 March 2010 03:16 am ETNew regs force PayPal to stop Japanese personal payments {{Webarchive|url=https://web.archive.org/web/20170708165045weblink |date=July 8, 2017 }}, Finextra, March 30, 2010Pakistan
In Pakistan, users can use Xoom, a money transfer service owned by PayPal.{{citation|url=https://www.dawn.com/news/1436793|title=PayPal-owned money transfer service to facilitate overseas donations to dam fund: report|date=October 4, 2018|access-date=January 29, 2019|archive-date=October 24, 2020|archive-url=https://web.archive.org/web/20201024231638weblink|url-status=live}} In October 2018, Pakistan's government used Xoom to help crowdsource funds for the purpose of building two dams.{{citation|url=https://www.nytimes.com/2018/10/25/world/asia/pakistan-dam-fund.html|title=Pakistan Tries a New Way to Pay for a Dam: Crowdsourcing|newspaper=The New York Times|date=October 25, 2018|last1=Ahmad|first1=Meher|access-date=January 29, 2019|archive-date=November 9, 2020|archive-url=https://web.archive.org/web/20201109041339weblink|url-status=live}}The government of Pakistan is trying to convince PayPal administration to launch its service in the country, but PayPal is not ready to introduce its services there.WEB,weblink PayPal is not coming to Pakistan anytime soon, The News, 22 November 2019, October 22, 2020,weblink live,Turkey
Eight years after the company first started operating in the country, Paypal ceased operations in Turkey on 6 June 2016 when Turkish financial regulator BDDK denied it a payment license. The regulators had demanded that PayPal's data centers be located inside Turkey to facilitate compliance with government and court orders to block content and to generate tax revenue. PayPal said that the closure will affect tens of thousands of businesses and hundreds of thousands of consumers in Turkey.NEWS,weblink PayPal to Exit Turkey After Regulator Denies Payments License, The Wall Street Journal, May 31, 2016, Peker, Emre, March 10, 2017, September 19, 2020,weblink live, WEB,weblink PayPal to halt operations in Turkey after losing license, impacts 'hundreds of thousands', May 31, 2016, June 25, 2017, July 31, 2017,weblink live,Sri Lanka
In January 2017, the PayPal team was scheduled to visit Sri Lanka in mid-January to re-establish links.WEB,weblink Doors open for PayPal in Sri Lanka, says CB, Daily Mirror, 29 December 2017, January 25, 2020,weblink" title="web.archive.org/web/20200125021536weblink">weblink live, In Sri Lanka as of 2021, PayPal can be used only to send money.WEB, 2020-02-17, Paypal gap holds back Sri Lanka's online fashion aspirations,weblink 2020-09-21, EconomyNext, {{Dead link|date=December 2021 |bot=InternetArchiveBot |fix-attempted=yes }}Russia
In March 2022, PayPal suspended all activities in Russia due to 2022 Russian invasion of Ukraine.WEB, Dave, Paresh,weblink PayPal shuts down its services in Russia citing Ukraine aggression, 2022-03-05, Reuters, limited, March 5, 2022, March 6, 2022,weblink live,Ukraine
In March 2022, PayPal expanded its services for Ukrainian accounts, allowing them to send and receive money from friends and family. Previously, PayPal users in Ukraine could only send money internationally from their accounts, not receive it.WEB, Brian Fung, PayPal enables Ukrainian accounts to send and receive money,weblink 2022-03-22, CNN, March 18, 2022, March 23, 2022,weblink live,Kenya
In 2018, PayPal and Safaricom collaborated to enable Kenyans to perform MPESA transactions by leveraging on the latter's mobile money serviceWEB,weblink How to link your PayPal account to M-PESA, July 23, 2018, February 26, 2023, February 26, 2023,weblink live,Indonesia
{{Update|date=August 2022}}In 30 July 2022, Kominfo blocked PayPal due PSE regulation. Many PayPal users in Indonesia are concerned, as some of them stored lot of their money in this platform.NEWS, Gayatri Suroyo, Indonesia blocks Yahoo, PayPal, gaming websites over licence breaches,weblink Reuters, August 2022, July 30, 2022, July 30, 2022,weblink live, The service had been temporarily unblocked for 5 days for users to withdraw their money from the platform.NEWS, Fransiska Nangoy, Indonesia opens temporary access to PayPal after blocking sparks backlash,weblink Reuters, July 31, 2022, August 1, 2022, August 1, 2022,weblink live, The main reason is that PayPal have yet to get a permit from Bank Indonesia and Otoritas Jasa keuangan.WEB, M Nurhadi, PayPal Belum Dapat Izin Bank Indonesia dan OJK, Semuel: Kita Tak Bisa Biarkan Beroperasi Ilegal,weblink suara.com, July 31, 2022, August 1, 2022, August 1, 2022,weblink live, PayPal had been unblocked in 3 August 2022 after registering.NEWS, Ananda Teresia, Gayatri Suroyo and Stanley Widianto, PayPal registers to Indonesia's licensing rules, access unblocked,weblink Reuters, August 3, 2022, August 4, 2022, August 4, 2022,weblink live,PayPal Giving Fund
PayPal Giving Fund is a registered charity supported by PayPal that streamlines donations to non-profit organizations.WEB,weblink PayPal Help Center Topics, www.paypal.com, May 16, 2023, May 16, 2023,weblink live, WEB,weblink Corporate Social Responsibility Tips from PayPal, www.businessnewsdaily.com, 2019-01-30, January 31, 2019,weblink live, WEB,weblink PayPal Giving Fund Launches In Australia, 2018-11-15, B&T, 2019-01-30, January 31, 2019,weblink" title="web.archive.org/web/20190131040644weblink">weblink live,Digital marketing with PayPal
PayPal launches different marketing activities in various channels and emphasizes that consumers can use it in different ways.WEB, Jennifer, Faull, PayPal set to launch multi-channel campaign,weblink The Drum, 15 March 2018, March 16, 2018,weblink" title="web.archive.org/web/20180316151918weblink">weblink live, PayPal's marketing includes TV commercials, outdoor advertising, Facebook, and display advertisement.PayPal provides free analytics to traders about the ways that consumers utilize online payments.WEB, Amy, Gesenhues, PayPal's new Marketing Solutions tool sheds light on how shoppers use the online payment platform,weblink Marketing Land, 14 March 2018, 24 October 2017, March 16, 2018,weblink live, Through the free tracking service, PayPal assists traders in targeting consumers. PayPal's code gathers the consumer information, which can be installed on the trader's website. Both PayPal and traders benefit from the free service.PayPal partners with Synchrony Financial to provide the PayPal Cashback Mastercard, which offers 2% cash back to customers who use the card to make purchases both online and in physical stores.WEB, Tyrone, Stewart, Paypal launches first cashback credit card to target physical stores {{!, Mobile Marketing Magazine|url=http://mobilemarketingmagazine.com/paypal-cashback-mastercard-credit-card|website=MobileMarketing|access-date=15 March 2018|archive-date=March 16, 2018|archive-url=https://web.archive.org/web/20180316084736weblink|url-status=live}} PayPal’s cashback financial service promotes the number of potential customers.Apple allows PayPal as a mode of payment for App Store, Apple Music, iTunes, and Apple Books.WEB, Alex, Spencer, Apple brings PayPal to App Store, Apple Music and iTunes for the first time {{!, Mobile Marketing Magazine|url=http://mobilemarketingmagazine.com/apple-brings-paypal-to-app-store-apple-music-and-itunes-for-the-first-time|website=MobileMarketing|date=July 12, 2017 |access-date=15 March 2018|archive-date=March 16, 2018|archive-url=https://web.archive.org/web/20180316084828weblink|url-status=live}} PayPal can increase usage of Apple platforms. In addition, PayPal receives revenue from Apple services, especially from the App Store.WEB, Ayoub, Aouad, PayPal and Apple enter major partnership,weblink Business Insider, 15 March 2018, March 11, 2018,weblink" title="web.archive.org/web/20180311180851weblink">weblink live, Customers can use PayPal to make purchases by linking their PayPal accounts to their Apple IDs.Regulation
Thiel, a founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional-reserve banking.WEB,weblink Paypal is Not a Bank, 21 January 2004, Entrepreneurial Thought Leader Speaker Series: ECorner, 24 November 2014, September 12, 2015,weblink" title="web.archive.org/web/20150912004512weblink">weblink dead, Rather, PayPal's funds that have not been disbursed are kept in commercial interest-bearing checking accounts.NEWS, Chu, Lenora, What PayPal does with your money,weblink 16 March 2014, CNNMoney, February 26, 2008, November 9, 2020,weblink live, In the United States, PayPal is licensed as a money transmitter, on a state-by-state basis.FDIC decides PayPal's no bank {{Webarchive|url=https://web.archive.org/web/20141129191731weblink |date=November 29, 2014 }}. ZDNet (March 13, 2002). Retrieved on 2013-08-12.WEB,weblink Bepress.com, January 20, 2011, December 4, 2010,weblink" title="web.archive.org/web/20101204022629weblink">weblink live, But state laws vary, as do their definitions of banks, narrow banks, money services businesses, and money transmitters. Although PayPal is not classified as a bank, the company is subject to some of the rules and regulations governing the financial industry, including Regulation E consumer protections and the USA PATRIOT Act.Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act) Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001) The most analogous regulatory source of law for PayPal transactions comes from peer-to-peer (P2P) payments using credit and debit cards. Ordinarily, a credit card transaction, specifically the relationship between the issuing bank and the cardholder, is governed by the Truth in Lending Act (TILA) 15 U.S.C. §§ 1601-1667f as implemented by Regulation Z, 12 C.F.R. 226, (TILA/Z). TILA/Z requires specific procedures for billing errors, dispute resolution, and limits cardholder liability for unauthorized charges.Margaret Jane Radin et al., Internet Commerce The Emerging Legal Framework 1174–1175 Foundation Press (2d ed. 2006) Similarly, the legal relationship between a debit cardholder and the issuing bank is regulated by the Electronic Funds Transfer Act (EFTA) 15 U.S.C. §§ 1693-1693r, as implemented by Regulation E, 12 C.F.R. 205, (EFTA/E). EFTA/E is directed at consumer protection and provides strict error resolution procedures. However, because PayPal is a payment intermediary and not otherwise regulated directly, TILA/Z and EFTA/E do not operate exactly as written once the credit/debit card transaction occurs via PayPal. Basically, unless a PayPal transaction is funded with a credit card, the consumer has no recourse in the event of fraud by the seller.In 2008, PayPal Europe was granted a Luxembourg banking license, which, under European Union law, allows it to conduct banking business throughout the EU.Article 23 of the EU's Banking Directive (Directive 2006/48/EC). It is therefore regulated as a bank by Luxembourg's banking supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF).WEB,weblink PayPal Obtains Bank Charter for European Union, Paymentsnews.com, February 15, 2012,weblink" title="web.archive.org/web/20130514103323weblink">weblink May 14, 2013, dead, WEB, Stevenson, Tom, PayPal becomes a bank to fight off Google,weblinkweblink January 10, 2022, subscription, live, The Daily Telegraph, The Telegraph, May 15, 2007, September 24, 2012, {{cbignore}}WEB,weblink PayPal becomes a Bank, no longer under FSA : TameBay : eBay & ecommerce made easy, TameBay, May 15, 2007, February 15, 2012, February 25, 2012,weblink" title="web.archive.org/web/20120225044816weblink">weblink live, All of the company's European accounts were transferred to PayPal's bank in Luxembourg in July 2007.WEB, Holahan, Catherine,weblinkweblink" title="web.archive.org/web/20070617191351weblink">weblink dead, June 17, 2007, Businessweek.com, Bloomberg BusinessWeek, June 15, 2007, January 20, 2011, Prior to this move, PayPal had been registered in the United Kingdom as PayPal (Europe) Ltd, an entity which was licensed as an Electronic Money Issuer with the UK's Financial Services Authority (FSA) from 2004. This ceased in 2007, when the company moved to Luxembourg.WEB,weblink FSA.gov.uk, FSA.gov.uk, January 20, 2011, April 29, 2011,weblink" title="web.archive.org/web/20110429043505weblink">weblink dead, In India, as of January 2010, PayPal has no cross-border money transfer authorization. In The New York Times article "India's Central Bank Stops Some PayPal Services", Reserve Bank of India spokesman Alpana Killawalla stated: "Providers of cross-border money transfer service need prior authorization from the Reserve Bank under the Payment and Settlement Systems Act, PayPal does not have our authorization."NYtimes.com {{Webarchive|url=https://web.archive.org/web/20170701031808weblink |date=July 1, 2017 }} The New York Times, India's Central Bank Stops Some PayPal Services, by Heather Timmons and Claire Cain Miller, February 10, 2010, PayPal is not listed in the "Certificates of Authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 for Setting up and Operating Payment System in India".RBI.org.in {{webarchive|url=https://web.archive.org/web/20100219072245weblink |date=February 19, 2010 }} Certificates of Authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 for Setting up and Operating Payment System in IndiaPaisaPay is an Indian sister service to PayPal. It is also owned by eBay.WEB, Ebay Helpfile on Paisapay, Ebay.in help file on Paisapay,weblink October 15, 2013, October 29, 2013,weblink" title="web.archive.org/web/20131029195911weblink">weblink live, PaisaPay makes possible payments from abroad by PayPal account holders to Indian sellers on eBay.in.In Australia, PayPal is licensed as an authorised deposit-taking institution (ADI) and is thus subject to Australian banking laws and regulations.WEB,weblink Authority to carry on banking business, Banking Act 1959, September 10, 2012, October 24, 2012,weblink" title="web.archive.org/web/20121024150622weblink">weblink dead, In Singapore, PayPal holds a stored value facility that does not require the approval of the Monetary Authority of Singapore.WEB,weblink paypal.com/sg, PayPal, 2019-08-10, August 10, 2019,weblink live,Safety and protection policies
The PayPal Buyer Protection Policy states that customers may file a buyer complaint for not receiving an item or if the purchased item was significantly not as described. The customer can open a dispute within 180 days from the date of payment and escalate it to a claim within 20 days from opening the dispute. Buyers using a credit card might get a refund via chargeback from their credit-card company. However, in the UK, where such a purchaser is entitled to specific statutory protections (that the credit card company is a second party to the purchase and is therefore equally liable in law if the other party defaults or goes into liquidation) under Section 75 Consumer Credit Act 1974, the purchaser loses this legal protection if the card payment is processed via PayPal.WEB, Kukiewicz, Julia,weblink Section 75: Credit card purchase protection, Choose, November 1, 2011, November 1, 2011, May 14, 2022,weblink live, Also, the Financial Ombudsman Service (for the U.K.) position is that section 75 protection does not apply where PayPal or any eMoney service becomes involved in the credit card transaction. This leaves consumers with no recourse to pursue their complaint with the Financial Ombudsman Service. They would only have recourse in the courts, but in any event they cannot because PayPal is incorporated in Luxembourg and, since the UK has left the EU, is now no longer within the jurisdiction of any UK Courts. The key issues that determine the applicability of section 75 are identified very clearly in Office of Fair Trading v Lloyds TSB Bank Plc and others [2006] EWCA Civ 268 7 and the Bank of Scotland v Alfred Truman (a firm) [2005] [EWHC] 583 (QB). This is a legal authority that section 75 protection does exist where one has paid on a credit card for a product, via an eMoney service.WEB, Miloseski-Reid, Paul,weblink Home Affairs Committee, publications.parliament.uk, July 29, 2013, June 13, 2015, June 15, 2015,weblink" title="web.archive.org/web/20150615071611weblink">weblink live, According to PayPal, it protects sellers in a limited fashion via the Seller Protection Policy. In general, the Seller Protection Policy is intended to protect the seller from certain kinds of chargebacks or complaints if the seller meets certain conditions, including proof of delivery to the buyer. PayPal states the Seller Protection Policy is "designed to protect sellers against claims by buyers of unauthorized payments and against claims of non-receipt of any merchandise". The policy includes a list of "Exclusions" which itself includes "Intangible goods", "Claims for receipt of goods 'not as described{{'"}}, and "Total reversals over the annual limit".WEB,weblink Buyer Protection & Seller Protection, PayPal, 24 November 2014, November 25, 2014,weblink live, There are also other restrictions in terms of the sale itself, the payment method and the destination country the item is shipped to (simply having a tracking mechanism is not sufficient to guarantee the Seller Protection Policy is in effect). The PayPal Seller Protection Policy does not provide the additional consumer protection afforded by UK consumer legislation (most notably the Consumer Rights Act 2015) and in addition, it cannot be enforced in the Courts because PayPal operates from Luxembourg, outside all three of the UK legal jurisdictions.WEB,weblink PayPal User Agreement, 8 October 2014, PayPal, 24 November 2014, November 25, 2014,weblink live,Security
Security token
In early 2006, PayPal introduced an optional security key as an additional precaution against fraud.MAGAZINE,weblink Researchers Discover Vulnerability in PayPal's Two-Factor Authentication, Kate Vinton, 25 June 2014, Forbes, 24 November 2014, A user account tied to a security key has a modified login process. Account-holders enter their login ID and password as normal, but are then prompted to enter a six-digit code provided by a credit card sized hardware security key or a text message sent to the account holder's mobile phone. For convenience, users may append the code generated by the hardware key to their password in the login screen. This way they are not prompted for it on another page. This method is required for some services, such as when using PayPal through the eBay application on iPhone.This two-factor authentication is intended to make it difficult for an account to be compromised by a malicious third party without access to the physical security key, although it does not prevent the so-called Man in the Browser (MITB) attacks. However, the user (or malicious third party) can alternatively authenticate by providing the credit card or bank account number listed on their account. Thus, the PayPal implementation does not offer the security of true two-factor authentication.WEB,weblink Keep your PayPal account safer with two-factor authentication, Nick Mediati, 29 October 2013, TechHive, 24 November 2014, October 30, 2014,weblink" title="web.archive.org/web/20141030070820weblink">weblink live,MTAN
It is also possible to use a mobile phone to receive an mTAN (Mobile Transaction Authentication Number) via SMS.WEB, PayPal Security Key – PayPal,weblink August 18, 2009, October 21, 2010,weblink live, Use of a security code that is sent to the account holder's mobile phone is currently free.MoonlightCEO.com {{Webarchive|url=https://web.archive.org/web/20140701002217weblink |date=July 1, 2014 }} Moonlight CEO, PayPal Secrets, October 28, 2013Fraud
As early as 2001, PayPal had substantial problems with online fraud, especially international hackers who were hacking into PayPal accounts and transferring small amounts of money out of multiple accounts. Standard solutions for merchant and banking fraud might use government criminal sanctions to pursue the fraudsters. But with PayPal losing millions of dollars each month to fraud while experiencing difficulties with using the FBI to pursue cases of international fraud, PayPal developed a fraud monitoring system to detect potentially fraudulent transactions.NEWS, Morisy, Michael, How PayPal Boosts Security with Artificial Intelligence,weblink 28 January 2016, MIT Technology Review, 25 January 2016, January 28, 2016,weblink" title="web.archive.org/web/20160128015006weblink">weblink dead, This development of fraud monitoring software at PayPal led Peter Thiel to create Palantir, a big-data security company whose original mission was to "reduce terrorism while preserving civil liberties."BOOK, Thiel, Peter A., Zero to one : notes on startups, or how to build the future, 2014, New York, 978-0-8041-3929-8, First,150,000 PayPal cards frozen
In 2015, 150,000 Spanish cardholders had their funds frozen in an apparent fraud case involving a PayPal service provider, Younique Money, which was the de facto administrator of the cards. Previously, PayPal had charged €15 to all its card users without authorization (150,000 users). As of March 2015, most funds had not been returned.WEB,weblink Paypal prepago deja de estar operativa, 5 September 2015, March 18, 2015,weblink" title="web.archive.org/web/20150318101631weblink">weblink live, WEB,weblink OCU denuncia a YoUnique Money ante el Banco de España, Cadena Ser, 6 March 2015, Cadena Ser, 5 September 2015, September 6, 2015,weblink" title="web.archive.org/web/20150906040752weblink">weblink live, WEB,weblink El Banco de España retira la licencia a Younique Money para emitir tarjetas Paypal, LA VANGUARDIA, February 16, 2015, 5 September 2015, April 2, 2015,weblink" title="web.archive.org/web/20150402090124weblink">weblink live,Criticism and controversies
{{See also|Criticism of eBay}}In 2003, PayPal voluntarily ceased serving as a payment intermediary between gambling websites and their online customers. At the time of this cessation, it was the largest payment processor for online gambling transactions. In 2010, PayPal resumed accepting such transactions, but only in those countries where online gambling is legal, and only for sites which are properly licensed to operate in said jurisdictions.WEB, Internet bingo guide to PayPal,weblinkweblink" title="web.archive.org/web/20131029190241weblink">weblink 2013-10-29, 2023-04-28, www.internet-bingo.co, en, Since at least 2005, PayPal has maintained an Acceptable Use policy which disallows "transactions involving ... items that are considered obscene ... [or] certain sexually oriented materials or services." Their enforcement of this policy has been a constant source of controversy between PayPal and people within or related to the sex industry. In 2014, PayPal notified subscription service provider Patreon that it was moving to cease integration with Patreon as a platform as the result of Patreon permitting "adult content" on their platform. Patreon subsequently removed access to PayPal services for creators who produced sexual content.WEB, Violet Blue, PayPal, Square and big banking's war on the sex industry,weblink engadget.com, July 19, 2019, Verizon Media Inc., 6 June 2021, June 6, 2021,weblink live, If an account is subject to fraud or unauthorized use, PayPal puts the "Limited Access" designation on the account. PayPal has had several notable cases in which the company has frozen the account of users such as Richard Kyanka, owner of the website Something Awful, in September 2005,WEB,weblink E-Commerce News: Security: Feds Investigating Fraudulent Katrina-Related Web Sites, September 26, 2005, Ecommercetimes.com, January 20, 2011, April 27, 2011,weblink" title="web.archive.org/web/20110427041009weblink">weblink live, Cryptome in March 2010,WEB, Orlowski, Andrew,weblink Theregister.co.uk, Theregister.co.uk, March 8, 2010, January 20, 2011, March 15, 2011,weblink" title="web.archive.org/web/20110315054658weblink">weblink live, WEB, Orlowski, Andrew,weblink Theregister.co.uk, Theregister.co.uk, March 10, 2010, January 20, 2011, January 9, 2011,weblink" title="web.archive.org/web/20110109084648weblink">weblink live, WEB, Orlowski, Andrew,weblink Theregister.co.uk, Theregister.co.uk, March 16, 2010, January 20, 2011, April 2, 2011,weblink" title="web.archive.org/web/20110402094551weblink">weblink live, or April Winchell, the owner of Regretsy, in December 2011. The account was reinstated, and PayPal apologized and donated to her cause.NEWS,weblink PayPal Rains on Regretsy's Secret Santa Campaign Over Use of Wrong Button, The Consumerist, December 5, 2011, November 6, 2011, Morran, Chris, December 6, 2011,weblink" title="web.archive.org/web/20111206224125weblink">weblink live, In September 2010, PayPal froze the account of the Minecraft developer, Markus Persson. Persson stated publicly that he had not received a clear explanation from PayPal as to why the account was frozen, and that PayPal was threatening to keep the money in the account if they found any suspicious activity. His account contained around €600,000 ($655,842 USD).NEWS,weblink PayPal Freezes Minecraft Dev's 600k Euros, Rock Paper Shotgun, September 10, 2010, January 20, 2011, February 22, 2011,weblink" title="web.archive.org/web/20110222032559weblink">weblink live, PayPal's partner MasterCard ceased taking donations to WikiLeaks in 2010, and PayPal also suspended, and later permanently restricted, payments to the website after the U.S. State Department said WikiLeaks was engaged in illegal activities. Online supporters and activists retaliated by subjecting PayPal and MasterCard, along with other companies, to coordinated cyber attacks.NEWS,weblink London, The Guardian, Esther, Addley, Josh, Halliday, Operation Payback cripples MasterCard site in revenge for WikiLeaks ban, December 8, 2010, December 28, 2014, August 17, 2014,weblink" title="web.archive.org/web/20140817052546weblink">weblink live, In February 2011, PayPal (wikt:unbanned|unbanned) the account of a website that supports Iraq War resisters after it had enough information to fulfill its know your customer guidelines. The Chelsea Manning Support Network claimed the backdown was a reaction to a petition to the company to reinstate the account.WEB,weblink Lance Whitney, PayPal reinstates Bradley Manning support group account, February 25, 2011, CNET, December 28, 2014, January 12, 2015,weblink" title="web.archive.org/web/20150112235408weblink">weblink live, In May 2013, PayPal declined to pay a reward offered in its Bug Bounty ProgramWEB,weblink PayPal, Security Researchers Bug Bounty Program, May 27, 2013, June 14, 2013,weblink live, to a 17-year-old German student who had reported a cross-site scripting flaw on its site.MAGAZINE,weblink PayPal denies teenager reward for finding website bug, PCWorld, May 28, 2013, May 29, 2013, The company wrote that the vulnerability had been previously reported, and chastised the youth for disclosing the issue to the public, but, uniquely, sent him a "Letter of recognition" for the discovery.WEB,weblink PayPal to Fix XSS Flaw, But No Reward For Researcher, Fisher, Dennis, May 29, 2013, July 31, 2019, July 31, 2019,weblink live, In August 2013, entrepreneurs who had used PayPal to collect the funds they raised on crowdfunding platforms like Kickstarter and Indiegogo reported difficulty in being able to withdraw the money. Actors included Ouya, GlassUp (a rival to Google Glass), and Mailpile.NEWS,weblink GlassUp raised $100K on Indiegogo – but PayPal is refusing to pay up, August 15, 2013, Venture Beat, August 14, 2013, August 17, 2013,weblink" title="web.archive.org/web/20130817010004weblink">weblink live, WEB,weblink PayPal Freezes Campaign Funds, September 5, 2013, Mailpile, September 5, 2013, September 7, 2013,weblink" title="web.archive.org/web/20130907034211weblink">weblink live, This also extended to crowdfunded games like (Yatagarasu Attack on Cataclysm|Yatagarasu: Attack on Cataclysm), Skullgirls and Dreamfall Chapters.WEB, Klepek, Patrick, 2013-09-20, Crowdfunding's Secret Enemy Is PayPal,weblink 2024-01-24, Giant Bomb, en, In May 2014, PayPal blocked the account of a Russian human rights organisation "RosUznik", which supported political prisoners arrested at Bolotnaya Square.WEB,weblink PayPal Blocks Donations for Printing Boris Nemtsov's Ukraine War Report · Global Voices, Global Voices, May 15, 2015, 5 September 2015, August 1, 2015,weblink live, WEB,weblink Russian campaigning website snared in internet controls, Financial Times, 5 September 2015, August 7, 2014,weblink" title="web.archive.org/web/20140807001924weblink">weblink live, As of January 2015, a class-action lawsuit against PayPal has been filed in Israel,NEWS,weblink 5 January 2015, Globes, 5 January 2015, ייצוגית ב-154 מ' ש': פייפ×ל חוסמת ×—×©×‘×•× ×•×ª ב×ופן שרירותי [Representative at 154m: PayPal arbitrarily blocks accounts], January 7, 2015,weblink" title="web.archive.org/web/20150107030806weblink">weblink live, claiming that they arbitrarily froze accounts and held funds for up to 180 days without paying interest and thereby directly profited from it. In the examples given in the lawsuit, PayPal had received complaints against small vendors which were later resolved, but the PayPal account was closed. The lawsuit requests that PayPal be declared a monopoly and thus regulated accordingly.In April 2015, The Guardian reported that PayPal had blocked the account of London-based human rights group Justice for Iran.WEB,weblink PayPal blocks Iranian human rights group's account over sanctions, The Guardian, April 21, 2015, 22 April 2017, April 22, 2017,weblink live, In May 2015, PayPal blocked an account intended to raise money for the distribution of Boris Nemtsov's report "Putin. War".WEB,weblink Paypal Blocks Russian Account Linked to Nemtsov Report on Ukraine – News, The Moscow Times, May 15, 2015, 5 September 2015, May 20, 2015,weblink" title="web.archive.org/web/20150520204705weblink">weblink live, NEWS,weblink Boris Nemtsov's parting shot, The Economist, May 13, 2015, 5 September 2015, July 1, 2017,weblink" title="web.archive.org/web/20170701161416weblink">weblink live, The explanation by PayPal was that "PayPal does not offer the opportunity to use its system for collecting funds to finance the activities of political parties or for political aims in Russia", though PayPal's Acceptable Use Policy does not mention financing for political goals.WEB,weblink PayPal Blocks Donations for Printing Boris Nemtsov's Ukraine War Report · Global Voices, Global Voices, May 15, 2015, 5 September 2015, August 1, 2015,weblink live, Non-governmental organization Freedom House issued a statement that "PayPal should immediately lift this ban, to help, rather than hinder, press freedom in Russia."WEB,weblink PayPal Blocks Donations for Report on Russian Actions in Ukraine, 5 September 2015, June 3, 2015,weblink live, In September 2015, PayPal reappeared as a payment processor at some newly legalized US online gambling sites operating in the state of New Jersey.WEB, PayPal quietly re-enters online gaming,weblink 2023-04-28, www.cnbc.com, September 15, 2015, en, April 28, 2023,weblink live, Since the May 14, 2018, Supreme Court of the United States overturn of the Professional and Amateur Sports Protection Act of 1992, PayPal has been widely available to customers in states where sports betting has been legalized for both depositing and withdrawing money.WEB, PayPal Sports Betting Sites,weblink 2023-04-28, www.sportsbetting3.com, en, April 28, 2023,weblink live, By 2016, ConsumerAffairs had received over 1,200 consumer reviews of PayPal, resulting in an overall satisfaction rating of one star out of five for the company.WEB, PayPal,weblink ConsumerAffairs,weblink October 13, 2016, Consumers have also launched numerous anti-PayPal Facebook pages and Twitter accounts to air their complaints.NEWS,weblink Stuck in a Dispute Between PayPal and Itself, David, Segal, The New York Times, October 12, 2013, NYTimes.com, February 18, 2017, October 9, 2016,weblink" title="web.archive.org/web/20161009125229weblink">weblink live, In February 2017, PayPal froze the account of News Media Canada, a Canadian trade association, in response to a payment from The Reminder, a Flin Flon, Manitoba community newspaper, intended to cover the fee for the Reminder's submission of articles for consideration in a nationwide journalism contest run by News Media Canada, including one discussing Syrian refugees. PayPal cited United States regulations as a reason for flagging the transaction between Canadian entities.WEB,weblink PayPal freezes Canadian media company's account over a story about Syrian family, March 14, 2020, August 4, 2020,weblink live, In September 2018, PayPal banned radio host Alex Jones and his website InfoWars, claiming that his site has content that was hateful and discriminatory against certain religious groups."PayPal bans Infowars over hate speech" {{Webarchive|url=https://web.archive.org/web/20180924061337weblink |date=September 24, 2018 }}, September 23, 2018; via Michael Kan, "PayPal Bans Infowars Over Hate Speech" {{Webarchive|url=https://web.archive.org/web/20200615150331weblink |date=June 15, 2020 }}, PCMag, September 21, 2018.PayPal discontinued payments to Pornhub models on November 14, 2019,NEWS, 2019-11-15, PayPal halts payment support to PornHub models,weblink Reuters, 14 November 2019, Vibhuti, Sharma, November 15, 2019,weblink live, alleging that "Pornhub has made certain business payments through PayPal without seeking our permission".WEB, Samantha, Cole, 2019-11-15, PayPal Pulls Out of Pornhub, Hurting 'Hundreds of Thousands' of Performers,weblink 14 November 2019, Vice (magazine), Vice, November 15, 2019,weblink live, Pornhub criticized the decision as one that affected "over a hundred thousand performers who rely on them for their livelihoods", and steered its payees toward other payment options.WEB, Jay, Peters, 2019-11-15, PayPal abruptly cuts off Pornhub's payroll, leaving performers with few payment options,weblink 14 November 2019, The Verge, November 15, 2019,weblink live, In September 2020, PayPal issued new terms of service which introduced a fee for inactive accounts in 19 countries. PayPal sent its clients an e-mail about the updated terms, but didn't mention introducing such a fee.WEB, 2020-10-01, Pozor na neaktivnà PayPal úÄet, hrozà poplatek,weblink 2020-09-30, Dotekomanie.cz, cs, March 20, 2021,weblink live, PayPal faced criticism over their policies related to changing the name on a user's account. Critics cited the complicated system involved in changing names, which require legal and government-issued identification. This system has been seen as impacting transgender users, who find trouble in using preferred names and pronouns.WEB, 2021-12-07, PayPal under fire over policy that stops transgender people changing their names, Daily Mirror, June 27, 2021,weblink December 7, 2021,weblink live, In July 2021, PayPal announced a plan to collaborate with the Anti-Defamation League's Center on Extremism, the League of United Latin American Citizens, and several other nonprofits to analyze its users' transactions, in order to investigate the finances of extremist and hate groups in the United States and share the results with law enforcement, policymakers, and other financial corporations;WEB,weblinkweblink July 31, 2021, live, PayPal Partners with ADL to Fight Extremism and Protect Marginalized Communities, PayPal Newsroom, 2021-07-26, July 31, 2021, WEB,weblink Anna, Irrera, 2021-07-26, Reuters, PayPal to research transactions that fund hate groups, extremists,weblink July 30, 2021, live, July 31, 2021, the ADL's CEO, Jonathan Greenblatt, stated that this initiative is meant to help "mitigat[e] extremist threats."In September 2022, PayPal shut the accounts of the British social commentator Toby Young, and two connected organisations: the Free Speech Union and The Daily Sceptic website. PayPal said that the accounts were closed because of breaches of its acceptable use policy, apparently because of alleged misinformation about COVID-19 vaccines.NEWS, James Beal, 22 September 2022, 2022-09-23, PayPal Free Speech Union accounts shut over Covid 'misinformation', The Times,weblink 0140-0460, www.thetimes.co.uk, September 23, 2022,weblink live, PayPal reversed the decision a few days later.TWEET, SpeechUnion, Free Speech Union, 1574821962383253504, PayPal has just reversed its decision to deplatform the Free Speech Union and apologised., NEWS, Tony, Diver, Henry, Bodkin, 2022-09-28, PayPal reinstates Free Speech Union accounts after being accused of 'politically motivated' ban,weblink The Daily Telegraph, The Telegraph, 27 September 2022, 0307-1235, www.telegraph.co.uk, September 28, 2022,weblink live,
In October 2022, PayPal published an update to their acceptable use policy which included a $2,500 fine for the accounts of users PayPal deemed to have been promoting "misinformation". Former PayPal president David A. Marcus criticized the change, tweeting that "PayPal's new AUP goes against everything I believe in". Elon Musk, co-founder of X.com, which later merged with Confinity to form PayPal, also criticized the change. Following media scrutiny and criticism on social media, PayPal removed the updated policy from their website, stating: "An AUP notice recently went out in error that included incorrect information. PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy. Our teams are working to correct our policy pages."NEWS, Caroline, Downey, October 8, 2022, PayPal Pulls Back, Says It Won't Fine Customers $2,500 for 'Misinformation' after Backlash, National Review,weblink October 9, 2022, October 8, 2022,weblink live, WEB, De Wei, Low, 2022-10-10, PayPal Says It Never Intended to Fine Users for 'Misinformation',weblink 2022-10-11, Bloomberg News, Bloomberg, October 11, 2022,weblink live, Litigation
In March 2002, two PayPal account holders separately sued the company for alleged violations of the Electronic Funds Transfer Act (EFTA) and California law. Most of the allegations concerned PayPal's dispute resolution procedures. The two lawsuits were merged into one class-action lawsuit (In re: PayPal litigation). An informal settlement was reached in November 2003, and a formal settlement was signed on June 11, 2004. The settlement requires that PayPal change its business practices (including changing its dispute resolution procedures to make them EFTA-compliant), as well as making a US$9.25 million payment to members of the class. PayPal denied any wrongdoing.WEB,weblink Settlement Agreement, June 11, 2004, August 6, 2008, June 26, 2011,weblink" title="web.archive.org/web/20110626085453weblink">weblink dead, In June 2003, Stamps.com filed a lawsuit against PayPal and eBay claiming breach of contract, breach of the implied covenants of good faith and fair dealing, and interference with contract, among other claims. In a 2002 license agreement, Stamps.com and PayPal agreed that Stamps.com technology would be made available to allow PayPal users to buy and print postage online from their PayPal accounts. Stamps.com claimed that PayPal did not live up to its contractual obligations and accused eBay of interfering with PayPal and Stamps.com's agreement, hence Stamps.com's reasoning for including eBay in the suit.NEWS,weblink Technology Briefing, Internet: Stamps.com Files Breach Of Contract Suit Against eBay, 26 June 2003, The New York Times, 24 November 2014, July 1, 2017,weblink" title="web.archive.org/web/20170701010719weblink">weblink live, WEB,weblink Stamps.com Asserts Breach of Contract Claim Against PayPal and eBay, April 23, 2008, August 27, 2007, October 9, 2007,weblink" title="web.archive.org/web/20071009035928weblink">weblink live, Craig Comb and two others filed a class action against PayPal in Craig Comb, et al. v. PayPal Inc.. They sued, alleging illegal misappropriation of customer accounts and detailed their customer service experiences, including freezing deposited funds for up to 180 days until disputes were resolved by PayPal. PayPal argued that the plaintiffs were required to arbitrate their disputes under the American Arbitration Association's Commercial Arbitration Rules. The court ruled against PayPal, stating that "the User Agreement and arbitration clause are substantively unconscionable under California law."WEB,weblink Comb v. PayPal Inc., January 21, 2007, July 29, 2006, July 15, 2006,weblink" title="web.archive.org/web/20060715192615weblink">weblink live, Paypal agreed to pay $9.25 million as a result of the case.WEB, Christophi, Helen, 2017-03-27, Judge Approves $4M Deal Over Closed PayPal Accounts,weblink 2020-08-09, en-US, September 5, 2020,weblink live, In September 2002, Bank One Corporation sued PayPal for allegedly infringing its cardless payment system patents.PayPal Hit With Patent Infringement Lawsuit {{webarchive|url=https://web.archive.org/web/20120107065400weblink |date=January 7, 2012 }} – PC World, September 10, 2002 The following year, PayPal countersued, claiming that Bank One's online bill-payment system was an infringement against PayPal's online bill-payment patent, issued in 1998.NEWS,weblink Internet: PayPal Sues Bank One Over Patent Infringement, April 23, 2008, The New York Times, February 18, 2017, December 6, 2008,weblink" title="web.archive.org/web/20081206165949weblink">weblink live, The two companies agreed on a settlement in October 2003.eBay, Bank One Settle Patent Suit {{Webarchive|url=https://web.archive.org/web/20111007040111weblink |date=October 7, 2011 }} – Law360, October 20, 2003In November 2003, AT&T Corporation filed suit against eBay and PayPal claiming that their payment systems infringed an AT&T patent, filed in 1991 and granted in 1994.WEB,weblink Paul, Festa, AT&T sues eBay, PayPal over patent, April 23, 2008, February 18, 2020, September 7, 2020,weblink live, The case was settled out of court the following month, with the terms of the settlement undisclosed.eBay, Tumbleweed settle patent suit {{Webarchive|url=https://archive.today/20130119140213weblink |date=January 19, 2013 }} – CNET, December 23, 2003In June 2011, PayPal and Israel Credit Cards-Cal Ltd. were sued for NIS 16 million. The claimants accused PayPal of deliberately failing to notify its customers that ICC-Cal was illegally charging them for currency conversion fees.NEWS, Katzovitch, Guy, ICC-Cal, Paypal sued in Tel Aviv court for NIS 16m,weblink June 23, 2011, Globes (newspaper), Globes, June 22, 2011, A NIS 16 million lawsuit was filed yesterday with the Tel Aviv District Court against Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa) and PayPal Inc., and the claimants have asked the court to recognize it as a class-action suit., October 29, 2013,weblink" title="web.archive.org/web/20131029183826weblink">weblink live, A class-action lawsuit filed in 2010 was settled in 2016, in which the plaintiffs contested PayPal's "holds" on funds. PayPal has proposed a settlement in the amount of $3.2 million in Zepeda v. PayPal which has yet to be ratified. As part of the settlement, the company agreed to change some of its policies.WEB,weblink PayPal Agrees to Change Business Practices in Lawsuit Settlement, September 15, 2016, September 16, 2016,weblink" title="web.archive.org/web/20160916012853weblink">weblink dead,CFPB consent
On 21 May 2015, PayPal agreed that PayPal Credit would pay a $25 million fine to settle a complaint filed in federal court by the Consumer Financial Protection Bureau. The complaint alleged that consumers using PayPal were signed up for PayPal credit accounts without their knowledge or consent, that PayPal had promised discounts and payment options the consumers never received, and that users trying to sign up for the regular, non-credit, PayPal accounts were signed up for credit accounts instead.NEWS, Marte, Jonnelle, CFPB seeks to fine PayPal $25 million over credit allegations,weblink 21 Jan 2016, The Washington Post, May 19, 2015, January 23, 2016,weblink live, The complaint was filed in the United States District Court for the District of Maryland, which ordered PayPal Credit to refund $15 million to consumers and to pay a $10 million fine.See also
{{div col|colwidth=30em}}- BattleHack
- Billpoint
- E-commerce payment system
- Electronic money
- Interchange fee
- List of online payment service providers
- Micropayment
- Payment service provider
- PayPal Mafia
- Paytm
- Google Pay
- Stripe (company)
References
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{{Commons}}- {{Official websiteweblink}}
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