PayPal was founded in 1998 and acquired by eBay in 2002. It allows individuals and businesses to make online payments using existing bank accounts, credit cards, and debit cards. PayPal serves as an intermediary between multiple participants in online transactions, providing infrastructure to enable secure electronic payments as an alternative to credit cards. The company grew rapidly after launching in 1999 and partnering with eBay in 2000, processing over $6 million in transactions daily by 2001.