Online business owners who don’t want to deal with their own credit card processing always have perplexity to choose the best payment option for themselves and their customers. There is a number of facilitating companies on the web that offer online money transfer services. PayPal is the biggest competitor out there that influences industry development from the very inception of the concept.
PayPal emerged as a partnership between Confinity and X.com – two neighboring companies, conveniently located on the same street in Palo Alto, CA – this street is also a headquarter for another online giant – Facebook. The merger produced a system that offered email payment as a feature along with a security shield from by automated systems invasion known today as CAPTCHA. By March of 2000 the company encountered one million users and in 2002 got acquired by eBay – the biggest online auctioneer on the web. That acquisition alone made a huge impact on e-commerce, changing the way the online vendors did business before.
If eBay started as an online garage sale that enabled anyone to sell unwanted (or wanted) stuff through Internet channels than PayPal is an online check that became accepted anytime and almost anywhere. Before PayPal came along only merchants were able to process credit payments online and if obtaining business license and setting tax payment ID with IRS is a matter of clicking the right button than setting merchant account is a fairly complicated and pricey process. PayPal provided vendors with ability to get paid through money transfer system that transacts credit cards payment, instant transfers and e-checks from a bank account with only requirements of having PayPal account and a valid email address. Such transactions are easy and secure as neither the seller nor the merchant has access to the client information, including the account number. The only data transmitted is a person’s email, name and shipping address.
PayPal user-friendly payment system and accessibility gained popularity among small merchants and eBay shops ensuring steady grows of the company in particular and e-commerce industry in whole. The company stepped way beyond eBay boundaries by offering financial mediation services to e-commerce platforms developers and large retailers and becoming their technology partner and a payment option of a choice yet again impacting the way e-commerce evolves. For instance Demandware which is one of the best e-commerce platforms on the web included PayPal as a part of their e-commerce solutions package and the library of pre-build integrations called LINK. Many International businesses claimed their share in ever-growing online selling profitability thanks to PayPal technology since in some parts of the world this payment system is the only option available for online shoppers. Plus being industry pioneer PayPal sets rules and standards that local competition is bound to follow.
Would this leadership last? It’s hard to predict as many companies are trying to fetch a torch and become next big thing on the web. What is fairly safe to say is that PayPal will not shyly sit in the corner waiting for the big hit. They sure have enough drive and resources to prolong the innovation into new options and partnerships.
Follow the link to explore how PayPal can easily integrate into any online store.[ad_2]
Source by Yuliya Karnaukh