John Paul J. Reyes SID# 860842918 BUS 174 4-15-08 Homework #1 The company I selected is Paypal. Paypal started as an online payment gateway provider targeting Ebay and buyers and sellers consummating transactions over the internet. These transactions could be executed without a need for the seller to have a merchant trasaction account. Paypal’s customer value proposition allows clients a safe and easy way to send and receive payments online via credit card, checking account, buyer credit, or account balances without having to share private account information. Paypal’s business model enables it to yield revenue by charging a transaction fee for credit card payments and e-check payments. Paypal also profits from merchant transaction processing with help through the acquisition of Verisign. Ebay purchased Paypal several years ago to increase their capabilities of producing revenue by charging a transaction fee for auctions and gaining revenue through Paypal fee charges. As with Ebay, Paypal now has global reach and leverage, they have been able to help buyers and sellers
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