Case Study: Paypal Has Company

2166 words - 9 pages

Case Study: PayPal Has Company
PayPal—the online payment processor now owned by eBay - was the first truly successful Internet-based e-commerce payment system. Its origins were quite simple. On November 16, 1999, Peter Theil sat with friends at a restaurant. When the bill arrived, Theil used his Palm Pilot to "beam" his share to a friend sitting across the table. Theil and fellow co-founder Max Levchin had built a system that would allow them to send money to one another via a Palm Pilot's infrared links. From this idea sprang one of the first "peer-to-peer" payment systems: a system that allows individuals to send money to one another via e-mail.
PayPal emphasizes ease of use for both ...view middle of the document...

However; they quickly realized that it would also work for a company such as eBay, providing purchaser* and sellers with a way to short-cut the time-consuming and cumbersome process of mailing checks and money orders and waiting for checks to clear before shipping items. Moreover, for small merchants selling items on the Web, it is difficult and expensive to obtain the capability to accept credit cards. Credit companies extend these merchant services only to bona fide businesses, usually requiring a physical place of business as a requirement.
Today, PayPal is the largest and most popular online payment service, growing from a handful of users when it launched in late 1999 to over 165 million in 2007, of which about 57 million can be characterized as active users. In 2007, PayPal processed $45 billion in payments. About 70% of this gross volume ($30 billion) is tied to eBay users, and $15 billion comes from non-eBay transactions. One reason PayPal has grown so fast is because it experiences the benefits of network economics or the "viral effect": the more people who accept and use PayPal, the greater the benefit to the consumer. If I send you a PayPal payment via e-mail, then you are incentivized to open a PayPal account to receive the funds. If PayPal is to continue growing, it will have to break out of the eBay marketspace and find new payment opportunities.
PayPal earns money in many different ways. First, online sellers (who may be individuals or small businesses that do not want the difficulties associated with obtaining a merchant credit card account) pay a transaction fee for the service (30 cents plus 1.9% - 2.9% of the proceeds of the transaction). This generally works out to 3.3% of the transaction on a $100 transaction. Credit card firms generally charge about the same or 0.3% more due to their higher customer acquisition costs. PayPal, in other words, can be slightly less costly than credit cards for merchants.
One advantage for merchants on eBay is that they are not required to have a merchant bank account, which is required by credit card issuers. Merchant banks clear credit card transactions and charge fees. Consumers are not charged directly for the use of their PayPal account although they do pay ultimately because retailers need to recover the costs of the transaction by raising the prices on goods sold using PayPal Second, PayPal earns revenue by collecting the interest earned on consumer funds not yet transferred out of the PayPal system. PayPal has charges for transferring funds to foreign banks, converting currencies, and new financial products such as a PayPal credit card.
Part of the strength of PayPal lies in its simplicity: it piggybacks on existing credit card and checking payment systems. This is also one of its weaknesses; however, PayPal reportedly suffers relatively high levels of fraud related to the credit card system on which it relies, To protect against fraud. PayPal requires special authorization for...

Other Papers Like Case Study: Paypal Has Company

Bottle Company Case Study

662 words - 3 pages 1: Bottling Company Case Study Due Week 10 and worth 140 points Imagine you are a manager at a major bottling company. Customers have begun to complain that the bottles of the brand of soda produced in your company contain less than the advertised sixteen (16) ounces of product. Your boss wants to solve the problem at hand and has asked you to investigate. You have your employees pull thirty (30) bottles off the line at random from all the

Bottling Company Case Study

1031 words - 5 pages Strayer University MAT 300 Dr. Soosan Shahrokh December 12, 2014 Bottling Company Case Study In this project we were given the case of customer complaints that the bottles of the brand of soda produced in our company contained less than the advertised sixteen ounces of product. Our boss wants us to solve the problem at hand and has asked me to investigate. I have asked my employees to pull Thirty (30) bottles off the line at random

Southern Company Case Study

1047 words - 5 pages Assignment 4: Southern Company—Case Study Author/Student: Antoine Jean “AJ” Garand Instructor/Professor: Dr. Marie-Line Germain, Ph.D. Course: Talent Management – HRM 532 Date: Sunday, February 26, 2012 Evaluate the effectiveness of the roles that the strategic leaders played in the formation of the performance management strategy. Silzer and Dowell (2010) define Talent Management as “ an integrated set of processes, programs, and

Huge Company Case Study

1507 words - 7 pages Huge Company Case Study Today, more and more organizations prefer Activity-Based Costing System (ABC) to the functional-based costing system. ABC takes into account minute details regarding the activities and the factors that add up to the final cost. ABC is based on an activity hierarchy wherein the different activities influencing the cost build up are grouped into different categories. Such a costing method improves cost measurement by

Bottle Company Case Study

607 words - 3 pages Bottle Company Case Study Statistics MAT/300 As Manager of the Harley Bottle Company, I have been receiving complaints from customers on the quantity of product received when purchasing our sixteen ounces soda bottles. These complaints have caused my boss to worry and would like me to investigate the issue at hand. I will begin my investigation by instructing the employees to pull at random 30 bottles from all the shifts at the bottling

Cannon Company-Case Study

2287 words - 10 pages Case Study: The Dannon Company OL 690: Responsible Corporate Leadership Southern New Hampshire University March 25th, 2015 Introduction Danone, the parent company and U.S. subsidiary of Dannon, was founded in Barcelona Spain in 1919 by Isaac Carasso (Marquis, Shah, Tolleson, & Thomason, 2011). Isaac had the goal of developing a yogurt for more than the purpose of taste, but with additional inherent health benefits (Marquis, et al

Case Study: the Cannon Company

1743 words - 7 pages Case Study: The Dannon Company Student’s Name Institution Affiliation Case Study: The Cannon Company Introduction Dannon Company was among the US subsidiary of Danone, which was one of the largest health-focused companies in the whole world. Its global business centered on fresh dairy such as active yoghurt, medical nutrition, baby nutrition and the bottled water. In 2008, Dannon did manufactured and also marketed

Midwest Light Company Case Study

1414 words - 6 pages Midwest Lighting Case Midwest Lighting, (MLI) Inc was a company dealing with the manufacture of customized designed fluorescent light fixtures for commercial, and other institutional applications. This company was formed by Daniel Peterson and Julian Scott in 1956 in Flint, Michigan. Daniel was in charge of the engineering and finance sectors while Walters headed the Sales and design unit of the company. As the company grew, personal

Eagle Manufacturing Company Case Study

3592 words - 15 pages Case Name: Eagle Manufacturing Company Case Study I. Major Facts A. Ted Jones is the supply manager for the Eagle Manufacturing Company. He has been the supply manager for two years. B. Ted has been struggling with one crisis after another while trying to placate operations, plant maintenance, and seemingly half the management team (and their assistants). C. Although Ted Jones has a great team of buyers

Title: Bottling Company Case Study

656 words - 3 pages  Title: Bottling Company Case Study Name: Course: Course code: Institution: Date: Bottling Company Case Study Complaints have been received that the bottles of soda produced in our company contain less than the advertised sixteen (16) ounces of product. The purpose of ensuing study is to verify the claim of the complainers. A random sample of 30 bottles was drawn from among all the shifts of the plant. Bottle

Cleaning Company-Discrimination Case Study

788 words - 4 pages Assignment #1 (10 marks) Case 3: Running Case: Carter Cleaning Company –Discrimination? Human Resources Management HRMT 301-103 Submitted To: Dr. Hasan Submitted By: Sarah Hallett, 300515800 Hints: The above cases are all related to the contents in Chapters 1 and 2 of the textbook. You should also refer to the relevant websites to get required information to support your answers Requirements and Marking Criteria: 1. For

Related Essays

Paypal Has Company Essay

548 words - 3 pages the PayPal brand image associated with their brands” (Laudon & Traver, 2009, p. 327). PayPal needs to find a way to make themselves more attractive to larger corporations, rather than being more synonymous with EBay and small consumer purchases. 4. Why are cell phone networks a threat to PayPal's future growth? A relatively new company called Obopay “hopes to integrate its service with Verizon’s own monthly billing service, thereby

Bottling Company Case Study

1020 words - 5 pages Bottling Company Case Study Svontaya Murray Professor P. Self Math 300- Statistics June 8, 2015 Bottle Number | Ounces | Bottle Number | Ounces | BottleNumber | Ounces | 1 | 14.5 | 11 | 15 | 21 | 14.1 | 2 | 14.6 | 12 | 15.1 | 22 | 14.2 | 3 | 14.7 | 13 | 15 | 23 | 14 | 4 | 14.8 | 14 | 14.4 | 24 | 14.9 | 5 | 14.9 | 15 | 15.8 | 25 | 14.7 | 6 | 15.3 | 16 | 14 | 26 | 14.5 | 7 | 14.9 | 17 | 16 | 27 | 14.6 | 8 | 15.5 | 18

Case Study Whistler Company

769 words - 4 pages Whistler Corporation Case Study Ivana Cizmic BU502 Instructor: Dr. Peggy Bilbruck Southern States University 2016 Abstract This case study is about analyzing the Whistler Corporation business issues. The Whistler Corporation at some point had to make a very important business decision. The decision was about if the company should continue manufacturing operations in the US or not. The company had experience some serious problems with

Bottling Company Case Study

572 words - 3 pages Students, please view the "Submit a Clickable Rubric Assignment" in the Student Center. Instructors, training on how to grade is within the Instructor Center. Assignment 1: Bottling Company Case Study Due Week 10 and worth 140 points Imagine you are a manager at a major bottling company. Customers have begun to complain that the bottles of the brand of soda produced in your company contain less than the advertised sixteen (16) ounces of