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  • Hello everyone, Welcome! Thank you for participating in this Presentation. This is case Study of PayPal. Without further a due, I would like to present the team members who have contributed to this presentation.
  • This Case Study is being presented to you by: Group 3 which compose 3 members:
  • Here is a overview of the items that this presentation will cover. A brief history and some background of PayPal will be presented to give the audience a better understanding of the Company. We will begin with an examination of the Case Study of PayPal from the Marakas & O’Brien text. This will cover the issue, the solution and evaluation of the measures taken. Next we will examine additional issues found that threaten the company. These problems will also be evaluated and commented on regarding the effectiveness of the solutions. The presentation will conclude with a summary of the overall health of PayPal and outlook going forward. References of works cited are included for further information.
  • The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 94 million active accounts in 190 markets and 24 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company and is made up of three leading online payment services: the PayPal global payment service, the Payflow Gateway and Bill Me Later. The company's open payment platform, PayPal X, allows developers to build innovative payment applications on multiple platforms and devices. Scott Thompson is president of PayPal with overall responsibility for establishing PayPal as the leading global online payment service. Scott previously served as PayPal's senior vice president and chief technology officer, where he oversaw information technology, product development and architecture for PayPal.
  • 1998 Peter Thiel gives lecture on market globalization afterward Max Levchin introduces himself. Several weeks later the two develop the idea of a digital wallet using a PDA. Later that year they form the company Confinity whose purpose is to enable money transfers using a Palm device or PDA 2002 Ebay acquires PayPal combining the world’s largest online marketplace with the web’s leading payment system 2005 PayPal Acquires VeriSign’s Payment Gateway and combines it with PayPal’s merchant services platform 2006 PayPal expands internationally to 103 markets and accepts 10 currencies 2009 Bill me later allows approved customers to select option to pay over time 2010 PayPal now allows account holders to buy goods through Facebook and send money using their mobile devices
  • The PayPal case study in the textbook outlines polylingual obstacle as one of the most challenging issues PayPal has ever faced against its globalization ambition. PayPal realized a few years ago that failing to solve this problem would have crippled its expansion into new countries and hindered its ability to grow. Given the threat to its future, PayPal decided to come up with not only an effective solution, but a permanent one
  • By re-architecting its software code to accommodate the language localization issues, and create what is called today “Polylingual simultaneous shipping” or “SimShip” by the development community. (O’Brien & Marakas, 2009)   According to
  • PayPal successful implementation of SimShip today is a proof that PayPal has finally overcome the polylingual issue. Gone are the days where PayPal had to worry about its globalization expansion, for now it possesses 15 languages, 17 currencies and 190 markets worldwide, as mentioned by Matthew Mengerink, Vice President of core technologies at PayPal. By going global all language at a time, PayPal has demonstrated that polylingual challenge is no longer its most relevant issue PayPal President Scott Thomson stated that the company should double in size over the next three years.  PayPal is expected to process between $100-$120 billion in annual payments around 2011.  PayPal has about 70 million active users.  PayPal is available in about 17 languages and accepts about 19 different currencies. PayPal takes a cut from each transaction and ended up making $2.4 billion in 2008. If all goes according to plan, PayPal’s expects their own revenue to increase to $4-$5 billion around 2011
  • Others issues needed to be dealt with on a daily basis, especially related to security. As an online payment and money transfer service, security is a constant issue for PayPal and will ever be around as technology evolves over time.
  • Fishing emails are the most common issues facing PayPal’s customers. They are emails that lead PayPal’s users to fake or “spoof” sites in order to steal their information for fraudulent activities. Spoof sites are fake sites that stand like the real PayPal site, usually with the same look and feel of which purpose is to lure users into collecting their information.
  • To solve this problem, PayPal recommend its users to remember the following important points whenever they receive an alleged PayPal’s email: Never click on a link in an email that requests personal information. PayPal will never ask its customers the following information in an e-mail: Credit and debit card numbers Bank account numbers Driver’s license number E-mail addresses, full name and password. (PayPal, 2011)
  • In November 2010, viaForensics a computer/mobile forensics firm, uncovered a security vulnerability for the app iPhone that would have exposed PayPal customers to either identity theft of financial risks, but PayPal rushed out to fix the problem by creating and releasing an update of its iPhone app. (ihaas, 2010)
  • In April 2010, PayPal announced he had patched numerous security holes that an Avnet Technologies security researcher had discovered in PayPal’s backend system related to its business and premier accounts. These vulnerabilities have exposed massive amount of customers’ data. (Prince, 2010)
  • PayPal has demonstrated a commitment to solving issues quickly and with effective solutions. They understand the nature of their business demands, and complete customer confidence. When issues arise they take control of the situation rather than letting things deteriorate.
  • Transcript

    • 1. WELCOME EVERYONE ! WE ARE SO DELIGHTED THAT YOU COULD JOIN US TODAY IN THIS PRESENTATION!
    • 2. ITEC 610 Group 3 Dan Matheny Jean Lordeus Guy Williams Kouam
    • 3. Agenda Company Background Corporate Timeline Textbook Case Study Problem Facing PayPal Reaction to the Issue Outcome of the Proposed Solution Additional Issues at PayPal Evaluation of Solutions Summary References
    • 4. Type::Subsidiary of eBay Inc. FOUNDED::Palo Alto, California, U.S. (1998) Headquarters::San Jose, California, U.S. Area served::Worldwide Founder(s)::Ken Howery,Max Levchin,Elon Musk Luke Nosek,Peter Thiel Revenue:: US$4.4 billion (2011) Available in::Multilingual
    • 5. Company’s process of deal PayPal is an acquirer, performing payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee. It may also charge a fee for receiving money, proportional to the amount received. The fees depend on the currency used, the payment option used, the country of the sender, the country of the recipient, the amount sent and the recipient's account type
    • 6. Company Background Service that allows members to send/receive money Website: https://www.paypal.com Corporate Headquarters 2211 North First Street San Jose, California 95131 President Scott Thompson 94 million active accounts in 190 markets and 24 currencies PayPal’s 2010 annual revenue was $3.4 billion, up 23 percent year over year (PayPal, 2011)
    • 7. As of March 2011, PayPal made changes to the User Agreement for Indian users to comply with Reserve Bank of India regulations. Notable changes to the agreement were: Export related payments for goods and services may not exceed $500. Any balance or future payments must not be used to buy goods or services but transferred to a bank account within 1 day from the receipt of payment. Credit/Debit cards must be used to pay through Paypal. The per transaction limit just been changed to USD 3000, since 14 October 2011. PayPal wants to make India an incubation center for the company's employee engagement policies. In 2012, PayPal hired 120 people for its offices in Chennai and Bangalore. PayPal plans to recruit 1000 candidates for its Bangalore Development center.
    • 8. Company Timeline 1998 Founded by Peter Thiel and Max Levchin 2002 Acquired by eBay 2005 PayPal Acquires VeriSign's Payment Gateway 2006 PayPal Expands Internationally Language/Currency Compatibility Issue 2009 Offer Bill Me Later Option 2010 Now on Facebook, iPhone, and Android
    • 9. Case Study Issue Facing PayPal Textbook Case Study Outlines Polylingual Issue  Foreign Language and Currency  Hindered International Expansion Threatened Company Future Needed Effective and Permanent Solution (Marakas & O’Brien, 2009)
    • 10. PayPal’s Reaction to the Issue Re-architecting Software Code with Internal Solution Accommodate the Language Localization Issues Recognize Country/Location Automatically Polylingual Simultaneous Shipping “SimShip”
    • 11. The Outcome Successful Implementation of SimShip Overcame/Solved the Polylingual Issue No longer a relevant problem at PayPal! Currently Accepts 15 Languages, 17 Currencies, 190 Markets Worldwide Expected to Process $100-$120 Billion in 2011. Projected Profit of $4-$5 Billion in 2011 (Chowdry, 2009) The Solution was a Huge Success
    • 12. Issues Beyond Case Study Security of Transactions Phishing Emails and Spoof Sites Security Vulnerability of Mobile App Backend System Security Holes
    • 13. Phishing and Spoof Sites Most Common Issue Facing Customers Emails Targeting Users Lead PayPal Users to Fake or Spoof Sites Looks Like Legitimate Website Steal Information, Identity, Money
    • 14. Recommended Solution Never Click Link that Request Personal Info PayPal Will Never Ask for the Following Via Email Credit Card Numbers Bank Account Information Driver’s License Number Email Addresses, Full Name or Passwords (PayPal, 2011)
    • 15. Mobile Device Vulnerability ViaForensics Uncovered Security Issue with iPhone Potential Identity Theft Financial Risk PayPal’s Response Quickly Reacted to Issue Created and Released Update to Correct App (Ihaas, 2010)
    • 16. Backend System Security Numerous Security Holes Discovered by Avnet Technologies Researcher Backend System Business and Premier Accounts Exposed Massive Amounts of Customer Data PayPal Patched Security Holes (Prince, 2010)
    • 17. Evaluation of Solutions Case Study Issue of Foreign Language/Currency SimShip Solution Very Successful Company Expanded Internationally Business Revenue Growth Other Security Vulnerabilities PayPal Very Proactive High Degree of Customer Confidence
    • 18. Summary of PayPal Currently the most popular online payment system. PayPal has Addressed Issues Effectively Company is Leader in Industry Customers Trust the Service Company Committed to Quality/Integrity
    • 19. References  Chowdry, A. (March, 2009). PayPal expects revenue to increase substantially. Retrieved from http://pulse2.com/2009/03/11/paypal-expects-revenue-to- increase-substantially/  Ihaas .(2010). ViaForensics: viaForensics uncovers PayPal application vulnerability. Retrieved from http://viaforensics.com/press- releases/viaforensics-uncovers-paypal-application-vulnerability.html  Marakas G. & Obrien J. (2009). Management information systems. pp. 473- 474. McGraw-Hill  PayPal. (2011). Welcome to the press center. Retrieved from https://www.paypal-media.com/who  Prince, B. (2010). PayPal Patches Critical Security Vulnerabilities. Retrieved March 2011 from http://www.eweek.com/c/a/Security/PayPal-Patches- Critical-Security-Vulnerabilities-807636/

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