PayPal.com's Business Model|IT and Systems|Case Study|Case Studies

PayPal.com's Business Model

            
 
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Case Details:

Case Code : ITSY040
Case Length : 18 Pages
Period : 1999 - 2004
Pub Date : 2004
Teaching Note :Not Available
Organization : PayPal.com
Industry : Online Finance
Countries : USA

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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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Excerpts Contd...

Ensuring Security

Ever since its inception, PayPal was acutely conscious of the fact that the customers had to be assured that their funds were safe with the company. For this, it was very important to employ the appropriate security systems.

The systems had to handle the continuous inward and outward flow of data while at the same time, minimizing chances of data being tampered with or frauds being committed. PayPal viewed its efficient security systems and the trust built up among customers because of these, as its USP and it was this very strength that served to drive away 'me-too' competitors like Payme, Payplace, Paypro, and ExchangePath from the market...

IT and Systems Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

The Problems

Analysts felt that PayPal's simple and secure business model contributed to its expanding customer base (Refer Exhibit VI for customer satisfaction stories). However, in spite of the growing popularity of the company's services, PayPal was criticized by a few customers, mainly for its fraud detection mechanism...

Exhibits

Exhibit I: Results of the Gartner Survey (2002)

Exhibit II: Paypal's Transaction Model

Exhibit III: Paypal Account Types and Their Features

Exhibit IV: Paypal's Ach Network

Exhibit V: Paypal's Privacy Notice

Exhibit VI: Customer Satisfaction Stories


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