When PayPal was founded, it was voted one of the worst ideas of the year. It’s now nearly 20 years later and few would argue against the fact that PayPal is an integral part of more online business models than any other payment processor. A closer look at the PayPal success story and it becomes evident that this Fintech has not been one built on a “copycat” approach to business, but that it started with a strong commitment to innovation and the empowerment of the developing internet commerce sector as a whole.
Solving a Key Problem & Empowering Its Users
Consider that at the inception of online commerce or ecommerce, the most commonly used reason against buying things online was the fear of entering credit card information on potentially unsecured websites and platforms. For merchants looking to sell online prior to PayPal, few solutions existed aside from opening expensive merchant accounts with Visa, MasterCard or similar companies.
The problem with opening an account with one of these companies is that not everyone used the same specific solution for their payments. That meant that even if you had a Visa merchant account, you might effectively be losing business from someone looking to pay by MasterCard or vice versa.
PayPal made it possible for online merchants to accept a variety of payment methods in one easy-to-implement set of API tools. This in itself changed the internet world and made eCommerce available to emerging merchants and global customers like nothing else in the internet realm.
Good Governance & Growth
PayPal was also able to stay ahead of the competition and generate new usership by actively marketing to the new entrepreneurs that were getting online. It’s biggest partners was eBay that, through a merger, was able to become the biggest auction-style internet sales platform in the world.
Similarly, PayPal, through good corporate governance, was able to build a market share that makes it very well-connected. It is simply impossible for competitors to encroach PayPal’s sector as it outgrows, out-markets and outshines its competition by a large gap. In fact, this gap grows bigger and PayPal becomes more and more dominant.
Today, PayPal is the 97th most valuable company in the private sector and has a truly global presence. It not only has revolutionized the entire ecommerce industry, but also powers it.
It is PayPal that makes it possible for entrepreneurs to operate without the high costs associated with adopting a wide array of payments.
All these factors have led to PayPal becoming the world’s first truly successful global Fintech, opening the doors of entrepreneurship for a couple of generations now. A sector that otherwise would have been forced to go through hoops and loops can simply use PayPal.
For a closer look at just how much PayPal has changed the world, look no further than, the success story of the biggest payment processor
Long way to go…!!!