PayPal is a well-known worldwide online payments system. However, despite the fact that the company spent a considerable amount of time under the scrutiny of the public eye, there are still some interesting facts that many people probably don’t know.
Number 1: PayPal Helped Launch YouTube
YouTube was founded by three former PayPal employees – Chad Hurley, Steve Chen, and Jawed Karim. They were able to use the company’s business model and connections to develop what would become the world’s most popular video-sharing platform.
Number 2: In 1999, It Was Considered a Terrible Idea
And in fact, PayPal was voted one of 1999’s ten worst business ideas. That’s because it was originally imagined as a way for people to send money to each other using their Palm Pilots.
Number 3: Its Founder Encourages Kids to Leave School
The company’s founder, Peter Thiel, introduced the Thiel Fellowship in 2010. The Fellowship is awarded to twenty 20-year-olds, and they are given $100,000 over a course of two years if they choose to drop out of school and pursue their own business ventures.
Number 4: Don’t Ever Call it a Bank
Some people might be tempted to call the service a bank since it’s involved in the handing over of so much money; however, its founder has insisted that it’s not a bank since it doesn’t involve itself with fractional-reserve banking.
Number 5: You Can’t Use the Service in Pakistan, Iraq or Afghanistan
PayPal does not support Pakistan, Iraq, or Afghanistan. It also refuses to support the countries on the United States economic sanction list.
Number 6: It Suffered Numerous Cyber Attacks After it Stopped Accepting WikiLeaks Donations
In 2010, MasterCard, which is the partner to PayPal, stopped accepting donations to WikiLeaks. It stopped accepting them after WikiLeaks activities were deemed illegal, and as a result, several supporters and hackers coordinated cyber attacks on the company.
Number 7: X Marks the Spot
You might know that Elon Musk helped create PayPal, but what’s even more interesting is that Musk was running an internet banking site on the domain X.com before beginning work with PayPal. In 2001, Musk’s X.com was renamed and began the process of expansion.
Number 8: Venmo Is One of PayPal Subsidiaries
Though many people might think that Venmo – a mobile application that allows people to send money to each other – is completely separate from PayPal, in fact, it’s a subsidiary of it. The company currently has four subsidiaries in addition to Venmo, including Braintree, Paydiant, PayPal Credit, and Xoom Corporation.
Number 9: Before it Was PayPal, it Was Confinity
Confinity was a company the helped develop security software specifically for handheld devices, and it was created in 1998. In 1999, PayPal was developed as part of Confinity’s money transfer service.
Number 10: The Original Team Is Known as the PayPal Mafia
The company came to be after some eBay employees left to create their own company. However, since PayPal was eventually acquired by eBay, the original employees had some issues. Most of them ended up leaving because they didn’t like the eBay work culture and continued on to make many successful companies.
Number 11: Users Can Hold Funds in 26 Different Currencies
International PayPal users are able to operate in all sorts of different currencies and can actually hold up to 26 different currencies in their account at any given time.
Number 12: PayPal Processed 450 Transactions Every Second on Cyber Monday
On Cyber Monday in 2015 – the Monday after Thanksgiving – the company processed an impressive 450 payments every single second. That’s 1.6 million transactions every hour.
Number 13: One of the Company’s Marketing Strategies Involved Giving Money Away
In the first phase of the company’s business model, people who agreed to sign up for an account would receive $10 – for free. The service did this as a marketing strategy to convince eBay users to sign up for an account.
Number 14: In India, PayPal Users Always Have to Pay a Transaction Fee
It’s True. This is because the company disabled its users in India from sending and receiving personal payments.
Number 15: Their Operations Center Is Somewhere Where You’d Never Expect
It’s in Nebraska. Though the company headquarters are in San Jose with the rest of Silicon Valley, their operations center is actually based out of Nebraska.