What is PayPal? – Advantage, Origin, Work and More
What is PayPal?
PayPal is an American corporation that operates safe online payment methods. Due to the guarantees it offers, it is one of the most used platforms in electronic commerce and sending money between individuals. The main benefit of PayPal is that it does not share bank or personal information with sellers, so it is an ideal payment method when there are doubts about the legality of an eCommerce.
Advantages of PayPal
Its reputation as one of the safest money exchange platforms is based on the following features:
It uses advanced technology to encrypt transactions.
It carries out controls against fraud that include vigilance against possible identity theft.
They offer buyer protection and refund money if you don’t receive the product you ordered or don’t match the description on the page. This refund includes shipping costs.
According to data from the company itself, it is a payment system used by more than 277 million people worldwide.
Origin of Paypal
PayPal found in 1998 under the name Confinity in Palo Alto, California, home to many of the companies that sprang up in Silicon Valley at the time. Initially, it dedicate more to money transactions via PDA, small electronic agendas widely used before the spread of smartphones.
The company, shaped by max Lev chin, Peter Thiel, Luke Nose and Ken How every, was complex in march 2000 with X.com, an online banking company started by billionaire Elon Musk (‘father’ of Tesla). It was then renamed PayPal. Its users grew exponentially in those first few months thanks to a destructive marketing campaign, and eBay definite to buy it in October 2002, when it was already the platform used by half of its customers.
PayPal had been scheduled on the New York Stock Exchange until the purchase, specifically on the Nasdaq electronic market. He returned to trading in July 2015, after his break with eBay.
Although it has had a monopoly on secure online payments for years, it faces competition from contactless systems and platforms developed by central banking entities.
How PayPal Works?
Getting started with PayPal is very easy. On the buyer’s part, it is enough to create an account link to a credit card, a bank account or both. When confirming payment in e-commerce, enter the email and password used to register the profile.
The seller, for his part, must make a business account in which he can adapt all the services he needs to start his business. PayPal allows you to enter your payment straight into a website or accept invoices by e-mail if you do not consume a web page.
Advantages of PayPal
First of all, it offers an information encryption system that guarantees the security of operations, a vital issue if we take into account that network security is an issue that concerns users, especially when it comes to money.
It is an easy system since it does not involve complex procedures to create your account. On the other hand, PayPal is free and has no maintenance or cancellation fees, however significant “fees” apply between the operations carried out. As for the flow of money, the mechanics are as follows:
Why use PayPal?
We use encryption and fraud prevention technology to protect your information around the clock. And if an item that meets specific criteria doesn’t reach you or doesn’t match its original description. we can give you a refund. Also, if you decide to return a purchase, you can request a refund of the return costs.
Link your bank account or your card to your PayPal account (and keep accumulating points). Choose how you want to pay without perturbing about whether or not you have a balance in your PayPal account.
Send money to your friends and family in just a few clicks. Everything you require is the recipient’s email address or phone number. You can pay off your debts in a matter of seconds.
History of PayPal
PayPal is an American company in the e-commerce division. Its system allows its users to make payments and transfers over the Internet without sharing financial information with the recipient. and only requires an email address. It is a fast and safe system to send and receive money. It operates almost everywhere in the world and supports money transfers between users. PayPal serves as an electronic alternative to usual payment methods (checks and money orders).
PayPal processes transactions for individuals, online buyers and sellers, auction sites, and other commercial users. Most of its customers come from eBay’s online auction site, which PayPal bought in October 2002.
It is a secure method for making payments and money transfers due to its 128-bit SSL encryption technology to protect all confidential information. and after the transaction, the recipient does not receive financial data such as card or bank account number or personal information.
In addition, it offers protection programs where the buyer can request a full or partial refund of their money. The return, according to the official page, is up to 2,500 USD (or equivalent in another currency) and covers problems of “Item receive” or “Item very different from describing”, including not only the price of the item but also shipping costs. . It is worth mentioning that this type of different is only valid. Its certain purchases where they omit, for example, intangible items, services, vehicles, etc.
Option of PayPal
PayPal offers free money transfers and payments. The recipient can be any person or company. whether or not they have a PayPal account, that has an email address.
The payment option is chosen:
- By credit or withdrawal card.
- PayPal Account Balance.
- Bank account.
PayPal sends the money instantly, without sharing financial information with the recipient.
The recipient receives PayPal’s message about the funds and will need to create a PayPal account. (if they don’t have one) to withdraw or transfer them to their bank account.
PayPal is a company that provides a virtual service. The user of this service registers in an account in which virtual money store, which corresponds to real money. Thus, PayPal becomes a service equivalent to that of a bank. and this system makes it possible to make online purchases of items and services. and also different platforms (for example, e-Bay). Sell something, or transfer money to a conventional financial institution. It protects and simple method to pay and receive money without the transaction information share by a financial institution.