PayPal is a web-based application and allows payment and money transfer through the Internet. This e-commerce business allows members to send money without sharing financial information. Thereby money transactions are covered by insurance up to a certain sum of money.¹⁾ For internet users paypal reduces the risk to loose their money in case of not getting expected goods. By that, paypal minimizes the risk of becoming victim of online fraud activities.

The authentication (see also Security Certificate) of the user via login, the Encryption of the financial data and the usage of the electronic transaction (SET) protocol is the base for the success of PayPal.

Sending money through the system for Personal accounts is for free. Fees only occur for receiving money. Business accounts need to pay for each sale but do not have setup costs or monthly fees. Overview costs.

The service PayPal is provided by the enterprise PayPal Europe in Luxembourg. The enterprise has been founded in 1998. On October 3, 2002, PayPal became a wholly owned subsidiary of eBay. eBay customers use in the majority Paypal as a payment system.

• https://www.PayPal-media.com/who
• Book: PayPal in 30 pages or less, 2004, Timesaver