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The company continued to build its Merchant Services department, providing e-payments for retailers on eBay. An important step is that the first version of the PayPal electronic payments system was launched in 1999. It should be mentioned that this company had no success with that business model, however, so switched its focus to a digital wallet, a real innovation for those times. PayPal was initially established by Max Levchin, Peter Thiel, and Luke Nosek in December 1998 as Confinity, a company that developed security software for handheld devices. PayPal charges a fee in exchange for benefits such as one-click transactions and password memory. One good thing to know is that the company operates as a payment processor for online vendors, auction sites, content creators, freelancers and many other commercial users. is an American company functioning an online payments system in most countries which allow online money transfers and serves as an electronic alternative to traditional paper methods like money orders, checks and so on.

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