After more than a decade as a subsidiary of eBay, online payments provider PayPal was spun off as an independent company in 2015. Over the previous decade, it had been that group's fastest-growing and most lucrative division. Initially regarded as an inhouse payment processing arm for the online auction business, it quickly outstripped its original purpose, becoming a general tool for easy virtual payments. Increasingly the business is being positioned as a payment services provider in its own right, with its own direct relationship with major retailers, allowing customers to use their Paypal accounts to pay for goods in-store as well as online. The group also launched its own credit card in partnership with consumer finance lender Synchrony in the US, and has introduced person-to-person payment services under the Xoom banner, acquired in 2015, and mobile apps Venmo and Braintree. By the end of 2016, PayPal had 197m active customer accounts worldwide, and processed 6.1bn transactions. Revenues were $10.8bn, with net income of over $1.4bn. Total payment volumes were over $354 trillion, up by over a quarter on the year before. Just over half of revenues were generated in the US, and almost 12% in the UK, Paypal's biggest international market. Dan Schulman is CEO. The PayPal concept was originally launched in 1999, and was acquired the following year by entrepreneur Elon Musk, who floated it in 2002. It was acquired by eBay later the same year for $1.5bn. Adbrands does not currently offer a business profile for this company but subscribers may access account assignments and contact information. The searchable account assignments database is available to full subscribers to Adbrands.net premium services. Click here to access Adbrands account assignments (subscribers only); or see here for information on how to subscribe.
Capsule checked 6th December 2017
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Adbrands Weekly Update 2nd July 2015: PayPal set about strengthening its position ahead of its spin-off from eBay, expected before the end of this month. It agreed to acquire money transfer competitor Xoom for $892m. Though it's headquartered in San Francisco, Xoom has a strong presence in developing markets such as Mexico, India, the Philippines and China, whereas PayPal is mainly concentrated at present on the US and the UK. Xoom will continue to operate as a separate brand, run by current CEO John Kunze. It reported revenues of $159m, on transaction volumes of around $7bn.
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