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Paypal Case Study

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Paypal Case Study
Technology Evolution
Case Analysis

The case is intended to be used as a basis for class discussion. It is not intended to serve as endorsement, source of primary data, or illustrations of effective or ineffective management. Copyright © 2010 SOM, AIT, P.O.Box 4, Klong Luang, Pathumthani 12120, Thailand.

PayPal -Technology Evolution - Case Analysis

Technology in PayPal
The digital wallet, firstly introduced by Peter Thiel and Max Levchin, might not be a success in the first introduction but it disrupted the payment service in the world. Some trial and error and finally integrate its service with eBay, the technology was accepted by the market. The digital wallet was such a radical technology turning a new face of payment process. It took benefit of being component technology by integrating its service to other technologies, such as PDA, eBay system, e-commerce, etc. Later the success of PayPal payment in early stage, computer security and fraud management technologies introduced by PayPal strengthen its core product. CAPTCHAS is a simple look technology but it could resolve the difficult problem in computer bot proof in very creative way. It simply the problem by using gap between human's capability and computer's one and combine some simple things together. Not only simple technology invented by PayPal, but complicated architectural technology was also invented in the PayPal lab.
PayPal web service is one wise step of PayPal. It proved the creativity of PayPal for gathering simple technology and modifies the process of technology usage to turn into a new face of payment service.
PayPal web service enhanced the competitiveness of e-commerce technology when eBay became unpopular and independent e-commerce website became rapidly popular in the faster internet network world. PayPal web service was considered as one of catalysts of e-commerce market.
So far, PayPal invented incremental technology to its service to increase it values such

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