PayPal is a global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders.
PayPal is an acquirer, performing payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee. It may also charge a fee for receiving money, proportional to the amount received. The fees depend on the currency used, the payment option used, the country of the sender, the country of the recipient, the amount sent and the recipient's account type. In addition, eBay purchases made by credit card through PayPal may incur extra fees if the buyer and seller use different currencies.
The current incarnation of PayPal is the result of a March 2000 merger between Confinity and X.com.
PayPal has been an integrated payment gateway in the EasyWebstore system for at least 6 years and the integration has undergone a number of updates in that time to keep up to date with changes to PayPal and it's policies.
As of 2008, PayPal's total payment volume, the total value of transactions, was US$60 billion, an increase of 27 percent over the previous year, and US$ 71 billion in 2009, an increase of 19 percent over the previous year. The company continues to focus on international growth and growth of 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.
Acquisition by eBay
In October 2002, PayPal was acquired by eBay for $1.5 billion. PayPal had previously been the payment method of choice by more than fifty percent of eBay users, and the service competed with eBay's subsidiary Billpoint, Citibank's c2it, whose service was closed in late 2003, and Yahoo!'s PayDirect, whose service was closed in late 2004.
As of 2012, PayPal accounted for 40% of eBay's revenue, amounting to US$1.37 billion in the 3rd quarter of 2012.