Here's How PayPal Became the Internet's Largest Payment System

Elon Musk played a part and now Venmo is keeping it strong.

By
Tech
4,007 Hypes 0 Comments

PayPal is the global online payment system that helps individuals and businesses make electronic money transfers. The company played a crucial role in the development of e-commerce by serving as the world’s first digital wallet — a convenient alternative to old-school paper transactions such as cash and cheques.

In 1998, Max Levchin and Peter Thiel founded the first iteration of PayPal (then called Field Link), which users could only use if they owned a PDA device. In 1999, the dot com bubble started and the Internet became a more feasible platform with a larger user base. PayPal received backing from Nokia and launched a simplistic system in which users only needed an email account and credit card to send money to anyone, anywhere in the world. PayPal grew even more when it partnered with eBay in 2002, the pioneering online marketplace, which had up until then depended on physical cheques as payment.

At this time, PayPal had several competitors, amongst which was a company called X.com, founded by Elon Musk. X and PayPal eventually merged in 2000, a move that helped PayPal survive the dot com crash. This early PayPal team was the beginning of what’s now known as the PayPal mafia, which includes major players such as YouTube, Tesla, Yelp, LinkedIn and more. By 2011, PayPal expanded to 100 million users worldwide. After strengthening security and fraud reporting, PayPal eventually broke the 200 million mark in 2017, making it to the Fortune 500 Index.

Today, Venmo, PayPal’s stand-alone P2P (peer-to-peer) platform has tapped into an even more convenient system of payment. Its social-mobile platform proves to be an exceptional growth driver for PayPal, expanding the company’s user base and earnings. In this year’s Q2 earnings report, Venmo users made $8 billion USD in transactions, driving 103 percent annual growth — cementing Venmo’s 16th consecutive quarter of triple-digit growth.

Recently, Elon Musk bought back X.com’s domain name from PayPal, with little information on what the mogul plans to use the website for. Let us know your thoughts on PayPal’s story and share any additional insight on the development of online payment systems.

Read Full Article
Image Credit
Eric Piermont/Afp/Getty Images

Join Our Discussions on Discord

The HYPEBEAST Discord Server is a community where conversations on cultural topics can be taken further.

102 Users Online

What to Read Next

Watch Michael Jordan & Scottie Pippen Nostalgically Reunite On-Court
Sports

Watch Michael Jordan & Scottie Pippen Nostalgically Reunite On-Court

The legends go head-to-head.

nonnative Presents a Vibrant 2017 Fall/Winter Video Lookbook
Fashion

nonnative Presents a Vibrant 2017 Fall/Winter Video Lookbook

Stay warm in pops of color for the upcoming cold weather season.

Shane Gonzales Discusses A$AP Rocky's AWGE & Offers a Look at His Archive Collection
Fashion

Shane Gonzales Discusses A$AP Rocky's AWGE & Offers a Look at His Archive Collection

Shop the designer’s archive collection.


Majid Jordan Announces New Album, 'The Space Between'
Music

Majid Jordan Announces New Album, 'The Space Between'

The OVO duo are back.

The Nike Air Max 90 Essential Gets Remixed In "Medium Olive"
Footwear

The Nike Air Max 90 Essential Gets Remixed In "Medium Olive"

Classic meets classic.

Drake's Dad Dennis Graham Stars in His Own "Kinda Crazy" Music Video
Music

Drake's Dad Dennis Graham Stars in His Own "Kinda Crazy" Music Video

Move over Drake.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We noticed you are using an ad-blocker

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.