The Business Model of PayPal

PayPal established an online fee-based payment service that can be used to transfer funds, e.g. to purchase or sell goods and services, to make or receive donations, as well as to send or receive payments for auctions at eBay or other e-commerce websites. Money can be transferred to anyone with just an email address, however the recipient needs to hold a PayPal account to receive the money. For sales in the U.S., sellers pay mostly 2.9% per transaction and even less if they sell more or if nonprofits are involved. International sales cost 3.9% transaction fee plus a fixed fee based on the currency received. Sending money is free in the U.S. when the funds are transferred from the bank account or PayPal balance.

PayPal Business Model
1998
Founded
30.900
Employees
San Jose, CA
Headquarter

Hard Facts

Business Model Canvas

This canvas shows a detailed explanation of how the business model of PayPal is structured.
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Business Model Patterns

The business model patterns of PayPal help to understand the mechanics behind the business model. Furthermore you can learn more about the specific business model pattern by clicking learn more.
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SWOT Analysis

The SWOT Analysis of PayPal is about the strengths, weaknesses, opportunities and threats of the companies business model. By clicking the i you can see a detailed description.
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What makes PayPal special?

This section is all about the secret sauce of the business model of PayPal. If there is any incredible information about the founding team (like how they started the business, etc.) you can learn from you can find it here!
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Marketing Insights

Last but not least in this section we analyse the marketing activities of PayPal. Which kind of marketing PayPal is doing?
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