ABSTRACT -

PayPal is an e-payment that manages payment transactions between buyers and sellers. PayPal was a result of joint venture between two small companies; the two companies struggled to stay in the market and so they came up with a good marketing strategy which helped PayPal to establish strong base of loyal customers; later PayPal was acquired by eBay which made PayPal more and more popular. Now PayPal is considered one of the most used e-payment system with more than 130 million members and 13 regional offices around the world. PayPal provides interesting and unique features that have made it even more favorable to customers, moreover PayPal is developing new features like mobile payment and funds transfer. There are arguments about the advantages and disadvantages of PayPal. As for the advantages of PayPal, PayPal provides its customers with

(1) competitive prices,

(2) transaction speed, and

(3) simple record keeping.

On the other hand, there are some disadvantages of using PayPal, like:

(1) frozen accounts, and

(2) confusing user agreement.

TABLE OF CONTENT -

LIST OF FIGURES

ABSTRACT

I. INTRODUCTION

II. PAYPAL BACKGROUND

A. History of PayPal

1. PayPal developers

2. PayPal financing

B. Current Status of PayPal

1. Current number of staff and users

2. PayPal vs. other e-payment systems

III. PAYPAL FEATURES

A. Current Features

1. Shopping online

2. Money tracking

B. Future Features

1. Mobile payment

2. Funds transfer

IV. PAYPAL ADVANTAGES & DISADVANTAGES

A. PayPal Advantages

1. Competitive pricing

2. Simple record keeping

3. Transaction speed

B. PayPal Disadvantages

1. Frozen accounts

2. Confusing user agreement

V. CONCLUSION

APPENDIX A - Questionnaire Sample

INFORMATION SOURCES

LIST OF FIGURES -

1 - Usage statistics of e-payment methods

2 - Online shopping process

3 - Money tracking feature

4 - Mobile payment process

5 - Reasons users use PayPal