The internet has created many household names in short order over recent years, but there are few success stories that are as impressive, or as well known as PayPal.
Starting life as a way to pay quickly and safely for purchases on eBay, the world’s very first online marketplace, PayPal has grown a huge amount since then, and is now one of, if not the most popular way to send and receive money in the world.
While PayPal makes many things easier, including online purchases, sending money to friends and family, and paying for goods and services, it is perhaps the online casino world that has seen one of the biggest impacts thanks to the rise and rise of PayPal.
Simplifying online payments before it was cool, PayPal is undoubtedly the OG of the industry, but has managed to maintain its position at the top for a long time, and shows no sign of letting up.
So what is it about PayPal that has ensured its popularity has maintained despite the numerous pretenders to the throne that have popped up in recent years?
As always, we’re here with a handy guide to tell you everything you need to know about PayPal as an online casino payment method.Read More
The History of PayPal
The story of PayPal is an intriguing one, with enough drama and big characters to fill a BBC smash hit show!
PayPal launched in September 1998 as Confinity (as an unrelated aside, Google also launched that same month, it was a big month!) which looked to develop a way to allow encrypted information on palm pilots, allowing digital devices to become eWallets of a sort.
However, there was not as much interest as expected for the service, so Confinity changed direction.
The company was launched by Max Levchin and Peter Thiel, who had met very shortly before the launch of the company, and when the original idea didn’t work out, they instead moved on to the storing of money, a digital “IOU” if you will.
With the ability to sync the software with Email and Web, the service would not be exclusive to palm pilots, giving it a much wider reach. It is at this point that Confinity became PayPal.
At the same time, there were other services working on the same idea, the largest of which being Elon Musk’s X.com.
X.com and PayPal entered a war that saw both companies haemorrhage money, with PayPal giving $10 every time a user recommended a friend, and X.com offering up $20 per new recommended user.
It became a “this town ain’t big enough for the two of us” situation, and ultimately, the two companies merged in March 2000.
All was not smooth sailing, however, with the two companies’ ideologies being very different, arguments with other executives, especially CEO Bill Harris, leading to Thiel leaving the company.
Money continued to be lost at pace, and Musk called an emergency meeting that saw him replace Harris as CEO, leading to Thiel returning and taking on the role of Chairman.
Executive musical chairs had not yet finished though, and while Musk attempted to dissolve PayPal in favour of X.com, despite a lack of public interest, and a mutiny by the original PayPal executive team saw a successful coup, with Musk being removed as CEO, and Thiel taking over.
Musk left and went on to create SpaceX and Tesla Motors, while PayPal started looking for a buyer.
The original hope was for $600 million, with eBay offering $400 million and threatening to “crush” the company if the offer wasn’t taken.
After PayPal proceeded with IPO and was valued at $1.2 billion, the cost for eBay was ultimately $1.5 billion, with the founders of the company walking away, each $100 million better off.
In July 2015, PayPal split from eBay and began trading a PYPL, and there has been considerably less drama since then.
PayPal and iGaming
PayPal is an interesting payment method for online casino players for a multitude of reasons, not least because PayPal prohibits the sending or receiving of money from gambling companies unless they have been directly approved by PayPal.
Up until 2015, gambling activities were prohibited without exception by PayPal, but in the years since the company’s separation from eBay, this has been slowly and quietly changing, meaning an increasing number of casino sites now offer PayPal as a payment method.
However, for those who are approved, the freedom and ease of use of players cannot be overestimated.
As long as you have set up a PayPal account and attached a bank card to it, then you can use PayPal to make deposits using nothing more than your email address and PayPal password.
This appeals to players who are uncomfortable sharing too much personal information with online casino operators, because it means your personal details such as your bank details are never passed on to the casino, instead PayPal works as a middle man to ensure a safe and secure transaction.
Since the relaxing of PayPal’s rules on iGaming, a huge number of online casino sites have started to offer PayPal as a payment method again, meaning the choice is vast if this is your chosen method.
The success of PayPal can be seen, as much as anything else, by the huge influx of other eWallets that have popped up over recent years, but at this point, none can touch PayPal when it comes to global brand recognition.
Whether PayPal can retain its position at the top remains to be seen, but since the difficult early days of losing money and too many egos working against each other behind the scenes, PayPal has managed to become one of the biggest companies on the internet, and is the online payment method that almost everybody thinks of first.
If you like to be very careful with where your money goes, then using PayPal to make your online casino deposits and withdrawals is a very sensible way to ensure you are comfortable when making payments at online casinos.