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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : ITSY040 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Shipping & Handling Charges extra


Case Length : 18 Pages
Period : 1999 - 2004
Pub Date : 2004
Teaching Note : Not Available
Organization :
Industry : Online Finance
Countries : USA


The case describes the business model of (PayPal), the market leader in e-payment services. It discusses in detail the transaction process involved in sending money electronically.

The case explains the types of user accounts of PayPal, the funds transfer mechanism, the user charges and the security systems employed by the company.

The case also briefly discusses the marketing initiatives of PayPal, the benefits of its business model and the challenges faced by the company.

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Study the business model of an e-payment services company.
To Develop an understanding on how an online payment system works.
Examine the online marketing initiatives of an e-payment services company.
Get insights into the security systems employed by an e-payment services company.
Study the privacy policy of
Analyze the weaknesses and possible threats to the business model of


  Page No.
Introduction 1
Background Note 2
The Rising Popularity 3
The Business Model 4
Ensuring Security 7
The Problems 9
Exhibits 11


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