How PayPal Is Changing the Way People Shop and Do Business: PayPal's Latest Update
You may have heard of PayPal, but never knew what it was. PayPal is a financial service that allows you to send money quickly and securely online, without giving your credit card information to the merchant. The e-commerce giant has been around for over 15 years, and continues to grow every year. In 2012, they had more than 147 million active accounts in 190 countries and regions. Most importantly, PayPal has reduced the time-consuming task of entering credit card information at checkout. This change has opened up a world of possibilities for e-commerce merchants and shoppers alike. Learn more about how PayPal is changing the way we shop and do business from here.
Before PayPal was founded in 2002, there were other companies that offered similar services, but they were not as simple or cost-effective. Examples of these other services included Swipe, Yahoo Merchant Center and Genpay. While these other systems were perfectly functional, they had a few quirks. So, the PayPal co-founders—Golan Levin, Max Levchin and Scott McKay—took a leap of faith and founded PayPal after a failed startup, Quicken Loans, Inc. The co-founders needed a way for their users to safely and securely pay for e-commerce purchases. They wanted to create a system that would connect consumers with merchants through a single login and payment process. The secret behind PayPal's success was this fact: PayPal was created for the consumer.
The company's beginning
Vikas Maurya founded PayPal in 1998. He wanted a better online payment service for online businesses and consumers. Initially, he sought funding from venture capitalists, but ended up finding it difficult to find the right investors at that time, given that the online payment industry was at its nascent stage. He then approached several venture capital firms with his business plan. But, most of them were not willing to invest because they did not believe that their investors would be willing to pay for online transactions and because there was no data available to prove the business model would be successful. This is when he decided to skip the angel investor route and found another way to fund the business. In order to raise the funds, he sold most of his personal possessions.
PayPal's growth over time
The idea for PayPal came when Gary Wright, a PayPal manager, couldn't get a ride in New York City, so he had to walk three miles to pay for his next bus ticket. Wright later found that only one in four people had a credit card. With the rise of e-commerce, PayPal took off. From 1998 to 2014, the company's yearly revenue doubled, tripled, and quadrupled. This is no surprise given PayPal's popularity, but it's an impressive stat. Their impact on global commerce continues to grow as well, with their presence on 646 million registered accounts. How Paypal Makes Online Shopping Easy You probably know what PayPal is, but it's easy to forget that it has been around for nearly 15 years. If you're like most people, you likely have never shopped online with PayPal.
PayPal's Latest Update
So, how exactly has PayPal made this change? This year they launched the PayPal Mobile SDK, which allows developers and merchants to build applications (apps) that connect to a payment button on the homepage. By having a mobile-friendly checkout experience, consumers can easily add their credit cards and enter their payment details from anywhere, anytime. As of August 2011, PayPal increased the number of online merchants with over one million transactions per month to more than 5,000. The number of transactions is steadily rising, which means more money is being earned for the company. Now, you may be asking yourself, how do I start using this feature? The easiest way is to integrate a PayPal button on your website.
What does the update entail?
In its latest update, PayPal offers more features to its customers, allowing them to perform numerous tasks. The biggest update will allow you to send money to your friends and family with no PIN or password required, and PayPal will alert you when there's insufficient funds. Pay with your smartphone will allow you to leave a tip at a restaurant with no paper receipts, and PayPal also has a selection of payment products for online purchases. This update allows merchants to have more control over their businesses, including things like purchasing analytics, POS integration, increased profits, and more. Why has PayPal made changes to its services? There's no question PayPal has revolutionized e-commerce, because it has simplified the process of paying for goods online.
The benefits for merchants and shoppers
Since PayPal's launch in 2002, the company has undergone huge changes. It started as a simple way to send money to friends and family online, and in the years since has transformed into a formidable online payment solution for merchants and shoppers alike. Not only has the company been busy growing its network to accommodate more merchants, but they've also been busy implementing innovations to the service. These innovations have dramatically increased the speed and convenience of checkout, as well as the safety of the e-commerce experience. For shoppers, this translates into the ability to make purchases on the internet, rather than being forced to visit a physical location to make a purchase. It's exciting to think about all the potential this opens up to e-commerce.
In today's rapidly changing business climate, it's important that your e-commerce website remains consistent, relevant, and modern. All of these factors impact the customer experience, and can provide an edge to your company. These tips are just a sample of the many tactics you can employ to ensure your e-commerce website is up to date and customer-friendly. If you're ready to start climbing the e-commerce ladder, learn more about how to go global with your online business with our e-commerce solutions.