![]() By the end of 2007, the company generated $1.8 billion in revenue. In 2007, PayPal announced a partnership with MasterCard, which led to the development and launch of the PayPal Secure Card service, a software that allows customers to make payments on websites that do not accept PayPal directly. In 2005, PayPal acquired the VeriSign payment solution to provide added security support. PayPal became the default payment method used by the majority of eBay users, and the service competed with eBay's subsidiary Billpoint, as well as Citibank's c2it, Yahoo!'s PayDirect, and Google Checkout. More than 70 percent of all eBay auctions accepted PayPal payments, and roughly 1 in 4 closed auction listings were transacted via PayPal. Shortly after PayPal's IPO, the company was acquired by eBay on October 3, 2002, for $1.5 billion in eBay stock. PayPal's IPO listed under the ticker PYPL at $13 per share and generated over $61 million. That same month, Elon Musk was replaced by Peter Thiel as CEO of X.com, which was renamed PayPal in June 2001 and went public in 2002. In October of that year, Musk decided that X.com would terminate its other internet banking operations and focus on payments. ![]() Musk and Bill Harris, then-president and CEO of X.com, disagreed about the potential future success of the money transfer business and Harris left the company in May 2000. Musk was optimistic about the future success of the money transfer business Confinity was developing. In March 2000, Confinity merged with x.com, an online financial services company founded in March 1999 by Elon Musk, Harris Fricker, Christopher Payne, and Ed Ho. The first version of the PayPal electronic payments system was launched in 1999. Having had no success with that business model, however, it switched its focus to a digital wallet. PayPal was originally established by Max Levchin, Peter Thiel, and Luke Nosek in December 1998 as Confinity, a company that developed security software for hand-held devices. “We’re starting slowly for now, but we’re looking to build it up with the right people in the right places,” Lunn said.For a chronological guide, see Timeline of PayPal. PayPal is starting relatively small with a select number of startup incubators in the US, EU and Israel, but is looking to expand into other territories with local language support. Lunn said: “We’re also offering startups the kind of 'white glove' support large companies like British Airways get, offering them a named, local contact at PayPal who will manage their account and help with their business models, plus access to startup mentors and evangelists.” It is not just money PayPal’s prepared to help with, however. PayPal’s waiver of fees is carefully calculated, of course, ceasing at 18 months or $50,000, which equates to about $1.65m in payments, because most startups sink or swim within 18 months. “Startups were going from being an idea to a multimillion pound business within two years, falling under the radar of a normal merchant bank because going from nothing to something very big so quickly is considered very high risk and that’s where PayPal can help,” said Lunn. The startups also need to be under five years old and making less than $3m a year in revenue. “We're thrilled to be a part of the PayPal StartUp Blueprint program, as it directly aligns with our goal of helping early-stage startups compete in the global marketplace," said Tom Bronfield, co-founder and managing director of Elevator. PayPal's Startup Blueprint Project aims to get startups going quicker to help them expand.
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