More than two decades ago, society started learning about the online industry and the amazing opportunity that lays in front of our eyes. As years passed by, we started connecting with people all around the world, and gradually transferred our offline habits on the internet.
It started with video games and websites, and now this industry is what defines us as humans as we speak. Not only do we use technology for fun and leisure, but it has become a vital part of our routine – we pay the bills, shop for groceries or clothes, make appointments, etc. It’s our go-to place, no matter what we’re searching for.
Therefore, it wasn’t long until money service businesses would show up in the online, as well. PayPal is one of the first platforms that have allowed us to receive and send money via technology, and its story is worth sharing.
Let’s take a closer look at the infographic created by the Pay-N-Play team and see how PayPal made it to the top!
Today, PayPal is the third preferred option for online payments, being outclassed only by VISA and MasterCard. Moreover, US consumers consider it the second most secure payment method after credit cards.
But when did it all begin?
In 1998, a couple of enthusiasts founded Confinity Inc., which stood as a prototype for PayPal. Among the founders, we name Ken Howery, Luke Nosek, Max Levchin, Peter Thiel, and Elon Musk. The platform as we know it was developed before 2000. In just a couple of months (from March to summer 2000), the number of users had increased from 1 to 5 million, after having previously meeting eBay in January.
In 2002, eBay bought PayPal, and the two platforms teamed up until 2014 when PayPal decided to split. However, it’s worth mentioning that between 2005 and 2015, the company invested in payment solutions, gateways, and apps that cost them over $2 billion.
The first day after, its market value reached a company record of $49 billion. In the days that followed, it increased its revenue, and the transaction value started to grow, as well. Today, PayPal processes over $8,000 every second!
Who uses and recommends PayPal?
When it comes to gaining the trust of your audience, creating partnerships with brands that your potential customers already trust is a great beam.
VISA, MasterCard, Vodafone, Alibaba, Facebook, and Google are just a few names that have partnered with PayPal. But that’s not all – of all users, 86% gladly recommend it to others.
And the fact that people coming from various social contexts use the service only confirms it. Not only do Millennials use it as a main payment method (87%), but 15% of Gen X and Baby Boomers also use it frequently.
Regarding its use on global levels, the US provides most customers – almost 45% of PayPal users. In the second place falls the Middle East – Germany, Great Britain, and France summing up almost 40%.
Nonetheless, there are also countries where PayPal is banned or prohibited, such as Zanzibar, Belarus, Burma, North Korea, Iran, Iraq, or the Democratic Republic of Congo, just to name a few. As opposed to popular belief, it’s not the platform that doesn’t approve with payments from and in any of these countries, but the fiscal regulations in certain states are incompatible with PayPal’s regulations.
As for the industries that rely on PayPal the most, shopping, traveling, health, business, technology, entertainment, and vehicles made it to the top. With such a wide approach, it’s no wonder that PayPal holds 83% of the market share! And even if they have both gained and lost customers from and to Visa and MasterCard, they’re still the leader in their niche.