The company will expand services into Germany and the UK by the end of the year. Expansion of its services is part of the company’s plan to transition to a company that acts more like a banking institution. PayPal’s senior vice president of global services Gary Marino:
We feel really good about our ability to lend.
Ebay changes the name of the PayPal payment service from Bill Me Later to Paypal Credit. The name change is part of PayPal’s image transition to one that is more in line with a banking institution. Ebay purchased PayPal Credit over year ago for approximately $1 billion. PayPal Credit offers consumers instant loans to purchase items on specific websites, including Walmart.com and Apple.com. The loans have interest rates of up to 20%. Steve Allocca, PayPal vice president of global credit, says PayPal is considering ways to extend credit offline such as auto loans.
PayPal says it will refund all people who supported the father accused of leaving his toddler son to die in a scorching hot locked SUV. Customers who used the service to contribute to the campaign at YouCaring.com, where a total of more than $22,000 was given, will be able to get their money back.
YouCaring.com said it does not take sides in legal matters:
The campaign was recently removed from the site so that the controversy and debate surrounding the Harris matter did not become a distraction to the millions of other donors participating in a wide variety of active fundraisers currently taking place in our community.
Botha becomes the company’s CFO:
I try getting in front of as many opportunities as possible, but in the late ’90s, I had no idea that I’d end up being CFO of a technology company. I’d no idea what venture capital was.
Botha joins the company as corporate development director, while still in grad school. He initially accepts the offer because he had run out of money after the 1998 emerging currencies crisis:
I didn’t have money to pay rent one month. I borrowed money from friends and family. It was embarrassing to be in that position. When the third offer from PayPal came around, I accepted it so that I could work part-time for three months before graduating.
PayPal is formed after online point-of-sale payments company X.com buys payments company Confinity. X.com stops its internet banking operations, and a Confinity system that focuses on payments transactions on personal digital assistants becomes the email-based PayPal system. The joint company is renamed PayPal and Elon Musk is its biggest shareholder.