PayPal is the name of the famous website which is primarily concerned with the transfer of money. This website operates via email and web services. It is known for being an alternative to the traditional way of paying, i.e. money orders and checks.

Ever since 1998, which is the year of the company’s founding, PayPal has been becoming more and more popular. The success became more obvious in 2018 when the company was ranked 222nd on the Fortune 500 of the largest US corporations by the revenue.

Have you ever wondered how PayPal managed to achieve such a success and how it makes money? In case you are interested in this topic, please continue reading the following article, since all the necessary details will be provided below.

PayPal and Subsidiary Brands


The business model of PayPal is more than interesting. Essentially, this company makes money out of processing customer transactions. The important thing to keep in mind when discussing PayPal is the number of brands surrounding it. In other words, PayPal is centered around several platforms such as Paydiant, Venmo, Xoom, and Braintree.

Paydiant Platform is primarily concerned with banks, merchants, distributors, and resellers. In 2015, Paydiant became part of the PayPal family, by reaching a 280 million dollar deal.

One of the main dimensions of Venmo is its social dimension. This app provides people with the ability to make payments and share money with friends. Also, fun fact: the popularity of this app resulted in a verb ‘venom’, due to the fact that people were using it in sentences like “Venmo me!”.

When it comes to the Xoom, it is mostly focused on money transactions worldwide. This means that people can pay bills, reload mobile phones, or even send money to numerous foreign countries from the United States.

Braintree is considered to be a payment platform which “provides all the tools online and mobile businesses need to accept payments”. When it comes to global leadership regarding mobile payments, Braintree is, without a doubt, a crucial component of PayPal.

PayPal – Revenue


The revenue of this company can be divided into two types. The first type refers to transaction revenues regarding net transaction fees which are typically charged to merchants and consumers. The second type is concerned with other value-added services, which are related to fees and loans.

PayPal – Net Worth


One of the main techniques and strategies of PayPal’s business model is measure. Guided by the belief that ‘If you can’t measure it, you can’t improve it’, this company has a strong metrics system.

The net worth of this company is estimated to be around 61.6 billion dollars. Not only is PayPal paid approximately 300 million dollars every day, but it is also ranked high by the costumers. The statistics confirm that 86% of users are quite happy with the service. Furthermore, it is considered to process around 18% of e-commerce sales. Also, there are more than 200 million active PayPal accounts all around the world.

To conclude, PayPal is one of the leaders in the industry when it comes to online transferring. Even though this company is relatively young, it has managed to achieve huge success and earn money. Perhaps this is so due to the fact that it provides its users with safety. Furthermore, the official website guarantees users that their financial information is secure. Also, the reason for PayPal’s popularity could be that this website is user-friendly. It seems that everything on the web site is a click away.

Therefore, logging in and actually using it has never been easier. Considering the smart and successful business model this company has developed, it is safe to say that it doesn’t matter whether you are an individual, partner/developer, or business – PayPal can serve you. Hence, the quote from the official web site ‘PayPal is for everyone who pays or gets paid’ seems to be true.