PayPal Giving Fund is a registered charity supported by Paypal that streamlines donations to nonprofit organizations.
PayPal cooperates with "Synchrony Financial" and provides a financial service to PayPal Cashback Mastercard, which offers 2% return cash to customers who are shopping online or on the physical stores by using PayPal. PayPal’s cash back financial service promotes the number of potential customers.
Apple allows PayPal as a mode of payment for App Store, Apple Music, iTunes, and iBooks. PayPal can increase usage by the platform of Apple. In addition, PayPal gets revenue from Apple services especially from App Store. Customers can use PayPal to purchase by connecting their PayPal payment system to Apple ID accounts.
In 2015, 150,000 Spanish card holders had their funds frozen in an apparent fraud case involving a PayPal service provider, Younique Money, which was the de facto administrator of the cards. Previously, PayPal had charged €15 to all its card users without authorization (150,000 users). As of March 2015 most funds had not been returned.
PayPal launches different marketing activities in various channels and emphasizes that consumers can use it in different ways. Paypal's marketing includes the TV commercials, outdoor advertising, Facebook, and display advertisement.
PayPal provides free analytics to traders about the ways that consumers utilise online payments. By the free tracking service, PayPal assists traders to target the consumers. PayPal's code gathers the consumer information which can be installed on the trader's website. Both PayPal and traders get benefit from the free service.
After the PayPal acquisition of Bill Me Later, Bill Me Later is offered as a payment method through PayPal at sites that both accept PayPal and Bill Me Later. PayPal balances are accepted as payment on Bill Me Later statements.
In June 2016 Seafile GmbH had its payment services from PayPal removed. PayPal had accused Seafile of facilitating the illegal sharing of files and demanded that they monitor file transfers and provide statistical information to PayPal, which Seafile refused to do. Some days later, PayPal reverted its decision and apologised to Seafile, but Seafile said they would drop PayPal in favour of other payment options.
In January 2008, PayPal acquired Fraud Sciences, a privately held Israeli start-up company with expertise in online risk tools, for $169 million, in order to enhance PayPal's fraud management systems. In November 2008, the company acquired Bill Me Later, an online payments company offering transactional credit at over 9000 online merchants in the US. PayPal revenues for Q1 2009 were $643 million, up 11 percent year over year. 42 percent of revenues in Q1 2009 were from international markets. PayPal's Total Payment Volume (TPV), the total value of transactions in Q1 2009 was nearly $16 billion, up 10 percent year over year.
According to PayPal, it protects sellers in a limited fashion via the Seller Protection Policy. In general, the Seller Protection Policy is intended to protect the seller from certain kinds of chargebacks or complaints if the seller meets certain conditions including proof of delivery to the buyer. PayPal states the Seller Protection Policy is "designed to protect sellers against claims by buyers of unauthorized payments and against claims of non-receipt of any merchandise". The policy includes a list of "Exclusions" which itself includes "Intangible goods", "Claims for receipt of goods 'not as described, and "Total reversals over the annual limit". There are also other restrictions in terms of the sale itself, the payment method and the destination country the item is shipped to (simply having a tracking mechanism is not sufficient to guarantee the Seller Protection Policy is in effect). The PayPal Seller Protection Policy does not provide the additional consumer protection afforded by UK consumer legislation (e.g., Sale of Goods Act) and in addition, it cannot be enforced in the Courts because PayPal operates from Luxembourg, outside all three of the UK legal jurisdictions.
In the United States, PayPal is licensed as a money transmitter, on a state-by-state basis. But state laws vary, as do their definitions of banks, narrow banks, money services businesses, and money transmitters. Although PayPal is not classified as a bank, the company is subject to some of the rules and regulations governing the financial industry including Regulation E consumer protections and the USA PATRIOT Act. The most analogous regulatory source of law for PayPal transactions comes from peer-to-peer (P2P) payments using credit and debit cards. Ordinarily, a credit card transaction, specifically the relationship between the issuing bank and the cardholder, is governed by the Truth in Lending Act (TILA) 15 U.S.C. §§ 1601-1667f as implemented by Regulation Z, 12 C.F.R. 226, (TILA/Z). TILA/Z requires specific procedures for billing errors, dispute resolution, and limits cardholder liability for unauthorized charges. Similarly, the legal relationship between a debit cardholder and the issuing bank is regulated by the Electronic Funds Transfer Act (EFTA) 15 U.S.C. §§ 1693-1693r, as implemented by Regulation E, 12 C.F.R. 205, (EFTA/E). EFTA/E is directed at consumer protection and provides strict error resolution procedures. However, because PayPal is a payment intermediary and not otherwise regulated directly, TILA/Z and EFTA/E do not operate exactly as written once the credit/debit card transaction occurs via PayPal. Basically, unless a PayPal transaction is funded with a credit card, the consumer has no recourse in the event of fraud by the seller.
The company continued to build its Merchant Services division, providing e-payments for retailers on eBay. In 2011, PayPal announced that it would begin moving its business offline so that customers can make payments via PayPal in stores. In August 2012, the company announced its partnership with Discover Card to allow PayPal payments to be made at any of the 7 million stores in Discover Card's network. By the end of 2012, PayPal's total payment volume processed was US$145 billion. and accounted for 40% of eBay's revenue, amounting to US$1.37 billion in the 3rd quarter of 2012.
, PayPal operates in 202 markets and has 286 million active, registered accounts. PayPal allows customers to send, receive, and hold funds in 25 currencies worldwide.
Shortly after PayPal's IPO, the company was acquired by eBay on October 3, 2002 for $1.5 billion, with a valuation of over $23 a share, or 77% above the IPO price. More than 70 percent of all eBay auctions accepted PayPal payments, and roughly 1 in 4 closed auction listings were transacted via PayPal. PayPal became the payment method used by a majority of eBay users (it was also the default choice), and the service competed with eBay's subsidiary Billpoint, as well as Citibank's c2it, Yahoo!'s PayDirect, Google Checkout, and Western Union's BidPay service, all of which closed in subsequent years.
On September 1, 2015, PayPal launched their peer-to-peer payment platform "PayPal.Me", a service that allows users to send a custom link to request funds via text, email, or other messaging platforms. Custom links are set to be structured as PayPal.me/username/amountrequested. PayPal.Me was launched in 18 countries including United States, United Kingdom, Germany, Australia, Canada, Russia, Turkey, France, Italy, Spain, Poland, Sweden, Belgium, Norway, Denmark, Netherlands, Austria and Switzerland. PayPal had 170 million users, as of September 2015, and the focus of PayPal.Me was to create a mobile-first user experience that enables faster payment sharing than PayPal's traditional tools.
Prior to Yahoo!, Thompson worked for eBay subsidiary PayPal as President and, before that, Senior Vice President and Chief Technology Officer, where he oversaw information technology, product development, and architecture.
Rabois served as Executive Vice President, Business Development, Public Affairs, and Policy at PayPal from November 2000 to November 2002.
In November 2009, PayPal opened its platform, allowing other services to get access to its code and to use its infrastructure in order to enable peer-to-peer online transactions.
It was announced on September 30, 2014, that eBay would spin off PayPal into a separate publicly traded company, a move demanded in 2013 by activist hedge fund magnate Carl Icahn. The spin-off was completed on July 18, 2015. Dan Schulman is the current President and CEO, with former eBay CEO John Donahoe serving as chairman. On Jan 31, 2018 eBay announced that, "After the existing eBay-PayPal agreement ends in 2020, PayPal will remain a payment option for shoppers on eBay, but it won’t be prominently featured ahead of debit and credit card options as it is today. PayPal will cease to process card payments for eBay at that time."
In Australia, PayPal is licensed as an authorised deposit-taking institution (ADI) and is thus subject to Australian banking laws and regulations.