Entrepreneurs that need inspiration often look to the pioneers in their field, such as Steve Jobs. Arguably, though, PayPal founders Peter Thiel, Max Levchin, and Luke Nosek deserve a nod, too, as they epitomised the saying, “If at first you don’t succeed, try, try again.” In 1998, the three founders launched PayPal and presented it as a company that developed security software for handheld devices.
However, PayPal didn’t have success with that business model, so the founders decided to switch the focus to a digital wallet. The rest, as they say, was history: PayPal went through an IPO in 2002 and was ranked 134th on the 2021 Fortune 500 list.
The PayPal Effect
Ever since PayPal changed its business model, the company has revolutionised the mobile banking industry. Many other mobile money apps have changed traditional banking, yet PayPal has become the preferred method in a growing digital payments industry, where total transaction value is forecasted to reach $10,715,390 by 2025. Studies indicate the top industries that use PayPal are retail and leisure such as entertainment and casinos, and the top countries that use the online payments system are the United States and the United Kingdom.
These statistics make sense, especially considering how total retail sales in the United States are forecasted to reach $5.35 trillion in 2025 and how the UK’s leisure sector was valued at £111 billion in 2019. Of the primary leisure sectors in the UK, restaurants generate the highest revenue, followed by gambling, which in the 2020 half-year period generated a GGY of £5.9 billion. And PayPal, ever at the forefront of industry trends, allows UK punters to gamble at several PayPal Casino options, which, according to review sites, offer fast withdrawals and allow individuals to fund their accounts. Naturally, PayPal is also an established platform, meaning it is safe and reliable in its use.
Meanwhile, in the US, consumers can use PayPal at major e-commerce stores like eBay and Best Buy, two major players in the retail and leisure industry. As such, it’s not surprising that research indicates the United Kingdom’s leisure industry and the US’s retail sector are the ones taking the most advantage of PayPal’s business model.
It’s hard to imagine PayPal could improve our world more than it already has, but alas, the company’s latest announcement proves it can. On September 21st, PayPal introduced the first version of its “super app.” The app combines different fintech tools, including direct deposit, peer-to-peer payments, bill pay, and a digital wallet. These features could shine a new light on the service and attract new users, which is something PayPal is likely striving for at the moment as more individuals shift their finances to neobanks.
The world’s transition into the digital age means that not only are we living in one but so are our finances. For decades, PayPal has made this transition easier, and such influence has trickled into other industries. Despite already cementing itself in fintech history, PayPal has not slowed down, and the rollout of its new app, intended to be an “all-in-one” stop for financial management, is the latest example of this.