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Finance allah shmoop What is pai pao All right Well

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in the beginning there were rocks And then there were

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animal helps Then beads and jewelry then cash then credit

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cards on dh Finally today papal Yeah So the history

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of payment technology has seen some changes paying for stuff

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quickly and easily using a few folded bills in your

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wallet Is gray paying for that stuff while in your

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ninja turtle One z pajamas from the comfort of your

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lazy boy violence Even better So yeah paypal is an

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electronic payment system that takes paying for things online with

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a credit card One step further It's still routes payments

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through the user's bank But everything can be done with

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the well it's Just the click of a button once

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you've linked paypal to your bank account Well there's no

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more typing in long strings of numbers digging a credit

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card out of your back pocket to check the security

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code and dates and all that on that business you

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just say yes Thank you kindly I would liketo buy

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these anti gravity boots via paypal And just like that

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those boots are well on the way to your front

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Door for better or worse you know provided they've been

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weighted down enough space Well paypal was originally created to

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help people pay for mostly ebay purchases specifically as well

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as you know a few adult art films but as

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of two thousand fifteen well ebay and hey pal have

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been separate companies You know breakups are hard So these

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days paypal is just well doing its own thing helping

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people everywhere process their monetary transactions How sweet and philanthropic

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of papal to do that right They do it all

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for free Yeah No not at all They don't do

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it all for free In fact they're pretty expensive Paypal

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is in the business of making money there A publicly

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traded company Well how did they do that Well two

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ways Mainly First they collect a service feet on transaction

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Almost the time As long as you're just a sending

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twenty bucks it's a mom for her birthday or to

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your buddy kin for your entry into the football pool

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Well the transaction is free to you but a merchant

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i eat Anyone selling a product pays a fee on

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every transaction Generally that fee is anything ever take about

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Thirty cents per transaction And then there's a small surcharge

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In addition based on the percentage in the size of

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the transaction right Well the other way papal makes money

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is by earning interest on all that money sitting in

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your account like it's just sitting there And then they

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invest it and they make more in interest than you

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do Just sitting with cash Right Five hundred fifty dollars

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You've been socking away online for a rainy day Well

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paypal has been making it rain because they invested in

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Yes Maybe they only make two per cent of that

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money and interest But there are a lot of people

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let money sitting there Paypal account So with billions or

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tens of billions or hundreds of billions of dollars making

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two percent two papal with almost no costs associated with

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that that's Pretty margin friendly kind of business right Add

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it all up and pay pallor doing just all right

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for themselves So yeah until the next great revolution in

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quick and easy payment processing happens Paypal and other similar

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sites like venmo and apple pay and maybe stripe Well

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there are where it's at Still a little tricky to 00:03:21.005 --> [endTime] trade your animal pelts though for all that dollars

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