PayPal is a financial services company that gives users, including both individuals and businesses, the ability to send and receive funds online. While the company started in 1998, it officially became PayPal in 2000 after its predecessors Confinity and X.com merged.
The company also went under the control of the famous online marketplace eBay. eBay promoted PayPal’s services and played a vital role in its early acceptability and adaptability.
PayPal has gone through many changes throughout its lifetime, some good while some others bad. However, the company has evolved through these changes and become the biggest name in the online financial services market.
The company has no competitors that can match its level of dominance in the market as of now. Similarly, the goals of the company have not remained the same now that it has achieved a substantial market share.
For a better and in-depth analysis of the company’s background and its success, it is critical to understand a few of its beliefs.
These beliefs make the company what it is today and define its future prospects and plans. These come in the form of the company’s vision, mission, objectives, and business model.
PayPal’s Vision
Through its vision statement, a company defines its inspiration and idealistic future for itself. It sets the things that a company values beyond other things and why it is in business.
For PayPal, its official vision statement is, “We believe every person has the right to participate fully in the global economy. We have an obligation to empower people to exercise this right and improve financial health.”
PayPal’s vision shows that the company believes in providing everyone with a platform through which they can participate in the global economy.
The company, through its products and services, does exactly that. It allows individuals and businesses to make transactions across the globe, reaching more than 200 countries.
Similarly, the company’s vision consists of providing everyone with the chance to increase their financial health. As with the above point, PayPal helps businesses not only limit their sales to a specific geographical location but also take it beyond that. Through this, they can improve their financial performance and health.
PayPal’s Mission
A mission statement exemplifies the reason why a company exists, its goals and products, services it provides, its customers or market, and geographical region of operations.
Sometimes, it may not define all of these but can still give a rough idea of what all of these are. For PayPal, its official mission statement states the following.
“We believe that now is the time to reimagine money, to democratize financial services so that managing and moving money is a right for all citizens, not just the affluent.”
The statement shows PayPal’s commitment to changing the world of online payments. PayPal believes that through its services, it can provide an equal playing ground for people of all backgrounds.
Therefore, the company does not believe in limiting its solutions to specific categories or types of people. Similarly, the company believes in bringing in new and innovative products that can transform the world of online payments.
PayPal has stood by its mission in the past and continues to do so in the present. The company has introduced many innovative products throughout the world. It is also available in over 200 countries, which shows its commitment to being accessible to everyone.
PayPal’s objectives
A company’s objectives show the goals or outcomes it intends to achieve in the future. PayPal’s current objectives include being the center of every payment transaction, whether online, mobile, or physical.
While the company has fulfilled a significant portion of its objectives in the online market, it still lags behind the competition in the mobile market. Similarly, for offline transactions, the company has a minute portion of the market share.
Some experts believe that some of its objectives are unreasonable and unachievable. However, the company, through its products and services, has provided time and time again that it can achieve it.
PayPal also has the financial backing to pursue these objectives. PayPal also has acquired many subsidiaries to help in achieving these objectives.
PayPal’s Business Model
Finally, PayPal’s business model also plays a substantial role in its growth and success. The business model of a company defines its target markets, products and services that generate revenue, and anticipated expenses.
PayPal’s target markets are clear from its mission statement as the company intends to go after the mobile and offline payments market in addition to its current online transactions market.
For its products and services, PayPal offers a wide variety of solutions to its current userbase, which generate the company significant revenue.
Most of its revenues come as a result of transaction-based commissions that the company earns for every transaction made by users.
Similarly, the company’s anticipated expenses consist of the cost of sales, administrative, marketing, research and development expenditures, etc.
Conclusion
PayPal is the largest and most successful online payment services company. Its success comes as a result of the ideas and beliefs behind it.
These come from the company’s vision, mission, objective, and business model. Given above is a detailed analysis of what these are for PayPal.