Background and History

Background and History

In 1998, Confinity was cofounded by Peter Thiel as a way of sending money between Palm Pilots.   The service Confinity provided had the product name “PayPal”., an online financial service was launched by Elon Musk in 1999.  Both companies initialed payments between individuals and subsequently merged in March 2000. It wasn’t until PayPal was acquired by eBay in 2002 that the company saw huge success specializing in internet money transfers.  PayPal Holdings, Inc. has many subsidiaries with its most recent being the financial technology company iZettle.

Description of Services

There are several services offered by PayPal. Overall PayPal allows you to securely purchase and exchange goods and services from a small business to a large corporation. Owning a PayPal account can be beneficial in many ways from business loans to invoices. Not only is the transfer of funds fast and secure, they are rewarding as well. For example, using the PayPal or personal credit card allows the consumer to access credits with Southwest, Best Buy, Lowe’s, and Spotify. Downloading the PayPal App creates a quick and easy way to shop online it is quick access to funds. With PayPal giving back to the community is effortless. With the app or online you are able to donate to any charity of your choice.

Market Description

Throughout the acquisition process and the overall development of the company has made it in a better position to offer a number of services to the customers. One such service is the use of gift cards that are digital in nature. This gift cards can be sent to anyone all around the world through the platform. Another product offered by PayPal is the Me Services whereby consumers can share a certain link between each other and in so doing, they transfer money from one customer to another. The individual that receives the link is the receiver of the cash. This service enables one to conduct a number of activities such as splitting the bill after a meal and paying for a service rendered.

There are also some accounts that do not require payment of a fee in operating them or during each transaction. The market segment also encompasses different stores all around the world which includes PayPal as one of their payment option. The products offered may come with a discount or cashback. Another product is a branded credit card that is processed through the Synchrony Bank. Lastly, debit cards are also offered as a product.


PayPal has been facing many competitors over the years. Its top competitors are Squareup, Affirm, Klarna, and Paytm. Almost all of them charge a fee between $.75 – $2.49 per a transaction. However, PayPal is in the lead with nearly 237M active accounts worldwide in the first quarter of 2018. Moreover, PayPal’s stock market price has been significantly increasing since May 2017 from $2.85 to be $84.74 per a stock nowadays. Based on data from PayPal’s SEC, the recorded revenue of the company is $13.8B.

PayPal’s strengths are coming first from the worldwide-presence of the company. It has been operating in over 200 countries. Thus, it is globally well-known. Second, it has a large number of customers, which makes it widely favorable and trusted company. Lastly, PayPal offers a variety of services such as PayPal here, online invoicing, and virtual terminal.

PayPal’s weaknesses are considered more exposed due to the high risk of accounts fraudulent. Phishing emails has been sent out to millions of people so far. They would lure PayPal users to put in their email addresses and passwords thinking they are coming from PayPal. Also, PayPal can’t operate without a network. Thus, it would be absolutely not useful.

Marketing Strategies

In the crucial line of business having a strategic plan or guide of operations is unduly imperative to maximize all profits while minimizing all conflicts , PayPal holdings Inc. carries out advanced and unique fundamental marketing strategies to acquire increase in customer utilization as compares to opposing or competitive businesses which fall under the same category as PayPal holdings Inc. PayPal increases its customer audience by unique strategies such as: making its customers feel special and at ease, when dealing with a customer’s money it puts PayPal users at much more ease receiving birthday notifications and user insurance, this alone assures the customers that they can report any discrepancies at any given time and feel assured that it will get handled without loss of money. Another strategic method PayPal carries out is making its services more convenient to its audience, in today’s world carrying cash is becoming out of style and PayPal can take responsibility for that, PayPal has created ways in which goods and services can be paid for upfront and even before hand when trying to make a purchase assuring refunds if necessary and speedy delivery upon request, PayPal has expanded its services to aid other app e.g. you can pay for Uber eats, Uber, Priceline app, purchase of bitcoin and crypto currency and even pay bills directly through PayPal. PayPal even takes to social media ads as far as expanding its market to certain target audience showing them easier ways of processing money.

Corporation Plans

PayPal is a global corporation with over one billion loyal customers. With one of its strengths being that it’s accessible to everyone with an internet connection and its secure payment transactions. PayPal has seen continued growth after its split with eBay. In 2017 PayPal launched the app Venmo. Venmo has been very successful despite PayPal’s grassroots approach to marketing.  Social media and Venmo’s appeal to a younger demographic provides Millennials with complete optionality. PayPal has focused on expansion and value throughout 2017 entering into 2018. PayPal dominates the market with its competitive advantage and continues to differentiate itself with its partnerships, customer loyalty, and providing customers with complete optionality.


The fourth quarter of 2017 GAAP EPS grew 57% and non-GAAP revenue grew 30%. The revenue grew 26% and non-GAAP revenue grew 24%. PayPal continues to make progress. The stock market is continuing to grow at a steady pace although it rocketed in 2017. In 2018 the first quarter revenue was already grown to 24%, the plan is to continue to use its resources to stay above their competitors, use its partnerships with Esty, Shopify and Magento to name a few and continue to grow through customer loyal and new customer transactions. PayPal should see growth by continuing to offer a variety of services, have multiple platforms to send and receive money, and actively seek new partnerships.

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