PayPal is a company from America which operates the online payments system worldwide and serves as an alternative to traditional methods like money orders and cheques. It also works as a payment processor for online websites and charges a small fee in exchange for transactions. Let’s find out how much is the net worth of PayPal in 2020.
PayPal was founded in the year 1998 by Ken Howery, Peter Thiel, Max Levchin and Luke Nosek. At that time, it was named “Confinity” and use to develop security software for handling several devices. In 1999, they started their money transfer service which was funded by John Malloy of the BlueRun Ventures.
In March 2000, Elon Musk the founder of the online banking company “X.com” bought Confinity because he was optimistic about the future of online money transfer business. In the same year, X.com closed its other internet banking operations to focus on PayPal money transfer service. In 2001, X.com was officially renamed as PayPal, and Peter Thiel was made the CEO of the company. The following year the company was made public, and since then it has been rapidly expanding every year.
In 2002, PayPal was acquired by eBay for more than $1.5 billion, with a valuation of over 76% above the Initial Public Offering (IPO) price. PayPal was made the default payment method for the eBay users, and more than 70 percent of the auctions in eBay accepted PayPal payments.
To expand its e-commerce business, PayPal bought the VeriSign payment solution in the year 2005. Two years later, the company announced a deal with MasterCard which helped them in launching the PayPal Secure Card service. In 2008, PayPal bought the Israeli start-up company “Fraud Sciences” to enhance its fraud management systems. In the same year, they acquired the online payments company “Bill Me Later” which provided transactional credit to more than ten thousand US merchants.
To grow its business offline, PayPal partnered with “Discover Card” to facilitate online payments in more than 7 million stores. In 2013, they acquired a Palo Alto startup “IronPearl” which offered engagement software and a Chicago-based online startup “Braintree” to grow its mobile services and product development.
In 2014, PayPal separated from eBay into a publicly traded company, and Dan Schulman was made its new CEO, and John Donahoe
who is the former eBay CEO was made the company’s chairman.
PayPal is one of the biggest companies providing online transactions which has 250 million active registered accounts in more than 202 markets. It allows to send, receive and hold money in 25 currencies globally. Its headquarters is based in San Jose, California but it has software development centres and customer support operations in more than 200 countries including India, Germany, Ireland, Malaysia, China, Japan, Austalia, Turkey and many more.
Net Worth & Earnings
PayPal has an estimated net worth of more than $105 billion. It has acquired more than 20 startups and companies including Paydiant ($280M), CyActive ($60M), TIO Networks ($233M), iZettle, Simility ($120M) and many more. In 2018, the company bought the Swedish payment processing company “iZettle” for $2.2 billion which is said to be it’s the largest acquisition to date. PayPal also earns revenue from various Apple services as it has been made the default mode of payment for their App Store.
PayPal is considered one of the top internet companies in the world which is growing each year exponentially. It also has a registered charity “PayPal Giving Fund” which provides support to several nonprofit organisations.