The History of PayPal
PayPal is now the de-facto e-wallet operating in the online payments space. The platform allows users to seamlessly send and receive funds online, without needing to expose any sensitive financial information.
Instead, you simply need to top-up your PayPal account, enter the email address of the person you want to send money to, and the funds are usually processed instantly.
Here we take a very brief look at the history of PayPal.
PayPal: When did the journey begin?
PayPal was launched way back in 1998. Based in California, the company engaged in its initial public offering (IPO) in 2002. While the IPO raised just $70.2 million at the time of the fundraising campaign, the company now has a market capitalization of over $129 billion.
The platform processes billions of transactions a year, across virtually every nation-state. Although PayPal is no longer owned by eBay, it is still the default payment method used by the online auction site. This means that the vast majority of eBay transactions are facilitated by PayPal.
How does PayPal work?
Using PayPal is extremely simple. You first need to open an account by entering some personal information. Once you’ve registered, you then need to link up a payment method so that you can deposit funds. Most people choose to link both a bank account and a debit/credit card. The latter is used to instantly deposit funds, and the former is used to withdraw money back out of PayPal.
Once you’ve linked your payment methods up, you can begin using PayPal. As the company has grown, PayPal now offers a vast range of use-cases. In its most basic form, you can use PayPal to transfer funds to another person with ease. Even if they don’t have a PayPal account themselves, they can simply create one once the funds arrive.
Alternatively, there are now hundreds of thousands of online vendors that accept PayPal as a means to pay for goods and services. By choosing the PayPal option at checkout, you can either use your available balance or use one of the payment methods that you previously linked to your account.
What about PayPal fees?
In order to make money, PayPal charges fees to use its services. This can come in two forms. Firstly, when you send money to another user, you will normally need to pay a fee. However, this isn’t always the case. For example, if you’re in the UK and you send money to another UK person, you can avoid paying fees.
Secondly, PayPal also indirectly charges users when they perform a cross-currency transaction. The platform adds a small percentage on top of the mid-market rate, which effectively acts as an additional charge.
However, if you use PayPal to pay for things online, you usually don’t pay any fees. This is why industries such as the online casino space now facilitate PayPal deposits and withdrawals for their customer base.
PayPal in the online casino space
This is a win-win situation for both the casino and the player. From the perspective of PayPal casinos, they receive the funds instantly, and at a much cheaper rate in comparison to Visa and MasterCard. When it comes to the player, not only are they accustomed to instant, free and secure deposits, but the withdrawal process is seamless.
For example, while traditional card issuers will take in the region of three working days to credit the withdrawal, PayPal does this within a matter of minutes.
However, it’s not just the online casino space that benefits from the efficiencies of e-wallets like PayPal. You’ll find virtually every online sector offering PayPal as a trusted payment method, which once again, is great for both the consumer and the merchant.