PayPal
PayPal is a platform and method for online payments.
Opening a PayPal account allows users to transfer money to online stores and other account holders. Payments are made by entering the email address of the receiving account holder or are initiated during the ordering process of an online store that offers PayPal as a payment method. PayPal accounts can be linked to a credit card or regular bank account.
PayPal was introduced in 1998 as a payment application by Confinity, maker of software for the Palm PDA. The payment system was acquired in 2000 by Elon Musk, who renamed it PayPal in 2001 along with his online bank X.com. Shortly after an IPO, PayPal was acquired in 2002 by auction site eBay, where the majority of sellers were already using PayPal as a payment method.
In 2015, PayPal was corporatized by re-listing its shares.
Buyer Protection
One of the reasons for its success is the buyer protection offered. This means that the paid amount can be reclaimed if the product is not received. If the product does not meet expectations, the buyer must provide proof of return in order to receive a refund.
In the Netherlands, PayPal is less popular than in other countries because in the early years it was necessary to have a credit card and because of the availability of alternatives such as iDEAL. Since PayPal accounts can be upgraded via iDEAL, the service is gaining popularity in our country.
Opening a PayPal account and transferring money is free. The recipient pays $0.35 for each transaction plus 3.4% of the amount transferred. Companies receiving large volumes of transactions are eligible for discounts.
Web shops that want to offer PayPal as a payment method can do business directly with PayPal for this purpose or work with a payment service provider.
