At Lincoln South Rotary Club on March 26, 2021, we heard from Srini Ampavati. He shared information on the history of PayPal and the effort to Democratize Financial Services.
 

Srini stated that PayPal was founded in 1998 - over 22 years ago. It started as a tech company with these founders:

Ken Howery who later became the U.S. Ambassador to Sweden
Luke Nosek who is an investor in SpaceX
Max Levchin created CAPTCHA
Peter Thiel who is the first outside investor in Facebook 
Yu Pan started YouTube and KiwiCrate
Elon Musk who went on to start Tesla, SpaceX and more

eBay got interested in PayPal after seeing the financial transactions for buyers and sellers on their site. They acquired PayPal in 2002. But, the founders of PayPal were not satisfied with the relationship. They also wanted the program to provide service to more people - to expand. Some states have laws that require the finances be separate. So, to benefit the employees, stockholders and public PayPal split away from eBay in 2014.

PayPal currently has 300 million account holders, in 200 markets around the world. They receive money in over 100 currencies, withdraw funds in 56 currencies, and hold account balances in 25 currencies.

PayPal’s mission statement is “we believe that now is the time to reimagine money, to democratize financial services, so that managing and moving money is a right for all citizens, not just the affluent.”

Dan Schulman is the current President and CEO of PayPal. He is focused on democratizing financial services to improve the lives of all people. He interviewed homeless people and then lived among them for a couple of days. He understood their struggles and realized that it costs them more to spend their  money than others. It is difficult for them to conduct any financial business because of the fees - it costs a great deal to spend their money. 

Dan has been working for the last 15 years to make it easier to spend money.A personal PayPal account is free and transactions are done with out fees.

PayPal has been recognized as one of the top companies on the Forbes' top 100 list of "companies doing good by America". Dan is highly respected and has influence in global economies. He is an inspiration to the entire PayPal company.

If consumer PayPal accounts are free, how do they make money? There are a number of other types of accounts and services that include fees. Most fees come from:
- - Business Accounts all include fees
- - Cross Border and Foreign Exchange transactions will have fees for currency exchange
Other fees include:
- - Interest revenue - the funds in PayPal accounts are invested and provides a small amount of income
- - Monthly fees for add on services
- - Credit Card - buy now / pay later transactions
 
Within the PayPal suite of services are:
- - Braintree - most companies have this as part of their account so can accept any payments from any credit card
- - Hyperwallet - helps with international transactions
- - iZettle - similar to Square
- - Simility – fraud detection
- - Xoom – similar to Western Union – much cheaper and faster
- - Venmo - an easy way to split bills and transfer funds between individuals