Hello,

We noticed you're browsing in private or incognito mode.

To continue reading this article, please exit incognito mode or log in.

Not an Insider? Subscribe now for unlimited access to online articles.

For PayPal, One Large Internet Payment

With eBay’s purchase, online payment technology comes of age.

Internet auction giant eBay announced plans Monday to purchase the online payment firm PayPal for $1.5 billion. The purchase underscores the growing importance of online payment technology, which allows individuals to send each other money over the Internet.

The move marks a change of strategy for San Jose, CA-based eBay, which until now had competed against PayPal with its own online payment service, BillPoint. It is yet another victory for PayPal, which has seen its share price double since it went public six months ago, an anomaly for most Internet companies these days. But in this case, the numbers seem to prove themselves. EBay auctions account for 60 percent of PayPal’s current customers, and eBay has announced that efforts will continue to expand PayPal’s customer base, which currently is growing by nearly 30,000 customers per day.

In December 2001 Technology Review detailed the inner workings of PayPal in “Digital Cash Payoff.” PayPal’s success, the article reported, rested on two technological feats: simplicity and fraud prevention. In May 2001, those feats earned PayPal co-founder Max Levchin Technology Review’s Innovator of the Year award, the capstone of the TR100 award ceremony and symposium that showcased one hundred innovators under 35.

Read “Digital Cash Payoff

Read TR100 Special Coverage, where you can:

  • Watch videos, view photos and read transcripts from the symposium.
  • Read the profiles of the 2002 TR100 and explore their accomplishments through annotated links.
  • View a list of the honorees indexed by industry.
  • Tell us who we missed in the TR100 forum.

Couldn't make it to EmTech Next to meet experts in AI, Robotics and the Economy?

Go behind the scenes and check out our video
Want more award-winning journalism? Subscribe and become an Insider.
  • Insider Plus {! insider.prices.plus !}* Best Value

    {! insider.display.menuOptionsLabel !}

    Everything included in Insider Basic, plus the digital magazine, extensive archive, ad-free web experience, and discounts to partner offerings and MIT Technology Review events.

    See details+

    Print + Digital Magazine (6 bi-monthly issues)

    Unlimited online access including all articles, multimedia, and more

    The Download newsletter with top tech stories delivered daily to your inbox

    Technology Review PDF magazine archive, including articles, images, and covers dating back to 1899

    10% Discount to MIT Technology Review events and MIT Press

    Ad-free website experience

  • Insider Basic {! insider.prices.basic !}*

    {! insider.display.menuOptionsLabel !}

    Six issues of our award winning print magazine, unlimited online access plus The Download with the top tech stories delivered daily to your inbox.

    See details+

    Print Magazine (6 bi-monthly issues)

    Unlimited online access including all articles, multimedia, and more

    The Download newsletter with top tech stories delivered daily to your inbox

  • Insider Online Only {! insider.prices.online !}*

    {! insider.display.menuOptionsLabel !}

    Unlimited online access including articles and video, plus The Download with the top tech stories delivered daily to your inbox.

    See details+

    Unlimited online access including all articles, multimedia, and more

    The Download newsletter with top tech stories delivered daily to your inbox

/3
You've read of three free articles this month. for unlimited online access. You've read of three free articles this month. for unlimited online access. This is your last free article this month. for unlimited online access. You've read all your free articles this month. for unlimited online access. You've read of three free articles this month. for more, or for unlimited online access. for two more free articles, or for unlimited online access.