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2. ITEC 610 Group 3
Dan Matheny
Jean Lordeus
Guy Williams Kouam

3. Agenda
Company Background
Corporate Timeline
Textbook Case Study Problem Facing PayPal
Reaction to the Issue
Outcome of the Proposed Solution
Additional Issues at PayPal
Evaluation of Solutions
Summary
References

4. Type::Subsidiary of eBay Inc.
FOUNDED::Palo Alto, California, U.S.
(1998)
Headquarters::San Jose, California, U.S.
Area served::Worldwide
Founder(s)::Ken Howery,Max Levchin,Elon Musk
Luke Nosek,Peter Thiel
Revenue:: US$4.4 billion (2011)
Available in::Multilingual

5. Company’s process of deal
PayPal is an acquirer, performing payment processing
for online vendors, auction sites, and other
commercial users, for which it charges a fee. It may
also charge a fee for receiving money, proportional to
the amount received. The fees depend on the
currency used, the payment option used, the country
of the sender, the country of the recipient, the
amount sent and the recipient's account type

6. Company Background
Service that allows members to send/receive money
Website: https://www.paypal.com
Corporate Headquarters
2211 North First Street
San Jose, California 95131
President Scott Thompson
94 million active accounts in 190 markets and 24
currencies
PayPal’s 2010 annual revenue was $3.4 billion, up 23
percent year over year (PayPal, 2011)

7. As of March 2011, PayPal made changes to the User Agreement for Indian
users to comply with Reserve Bank of India regulations. Notable changes
to the agreement were:
Export related payments for goods and services may not exceed $500.
Any balance or future payments must not be used to buy goods or services
but transferred to a bank account within 1 day from the receipt of
payment.
Credit/Debit cards must be used to pay through Paypal.
The per transaction limit just been changed to USD 3000, since 14 October
2011.
PayPal wants to make India an incubation center for the company's
employee engagement policies. In 2012, PayPal hired 120 people for its
offices in Chennai and Bangalore. PayPal plans to recruit 1000 candidates
for its Bangalore Development center.

8. Company Timeline
1998 Founded by Peter Thiel and Max Levchin
2002 Acquired by eBay
2005 PayPal Acquires VeriSign's Payment Gateway
2006 PayPal Expands Internationally
Language/Currency Compatibility Issue
2009 Offer Bill Me Later Option
2010 Now on Facebook, iPhone, and Android

9. Case Study Issue Facing PayPal
Textbook Case Study Outlines Polylingual Issue
 Foreign Language and Currency
 Hindered International Expansion
Threatened Company Future
Needed Effective and Permanent Solution
(Marakas & O’Brien, 2009)

10. PayPal’s Reaction to the Issue
Re-architecting Software Code with Internal Solution
Accommodate the Language Localization Issues
Recognize Country/Location Automatically
Polylingual Simultaneous Shipping “SimShip”

11. The Outcome
Successful Implementation of SimShip
Overcame/Solved the Polylingual Issue
No longer a relevant problem at PayPal!
Currently Accepts 15 Languages, 17 Currencies, 190
Markets Worldwide
Expected to Process $100-$120 Billion in 2011.
Projected Profit of $4-$5 Billion in 2011
(Chowdry, 2009)
The Solution was a Huge Success

12. Issues Beyond Case Study
Security of Transactions
Phishing Emails and Spoof Sites
Security Vulnerability of Mobile App
Backend System Security Holes

13. Phishing and Spoof Sites
Most Common Issue Facing Customers
Emails Targeting Users
Lead PayPal Users to Fake or Spoof Sites
Looks Like Legitimate Website
Steal Information, Identity, Money

14. Recommended Solution
Never Click Link that Request Personal Info
PayPal Will Never Ask for the Following Via Email
Credit Card Numbers
Bank Account Information
Driver’s License Number
Email Addresses, Full Name or Passwords
(PayPal, 2011)

15. Mobile Device Vulnerability
ViaForensics Uncovered Security Issue with iPhone
Potential Identity Theft
Financial Risk
PayPal’s Response
Quickly Reacted to Issue
Created and Released Update to Correct App
(Ihaas, 2010)

16. Backend System Security
Numerous Security Holes
Discovered by Avnet Technologies Researcher
Backend System
Business and Premier Accounts
Exposed Massive Amounts of Customer Data
PayPal Patched Security Holes
(Prince, 2010)

17. Evaluation of Solutions
Case Study Issue of Foreign Language/Currency
SimShip Solution Very Successful
Company Expanded Internationally
Business Revenue Growth
Other Security Vulnerabilities
PayPal Very Proactive
High Degree of Customer Confidence

18. Summary of PayPal
Currently the most popular online payment system.
PayPal has Addressed Issues Effectively
Company is Leader in Industry
Customers Trust the Service
Company Committed to Quality/Integrity

19. References
 Chowdry, A. (March, 2009). PayPal expects revenue to increase substantially.
Retrieved from http://pulse2.com/2009/03/11/paypal-expects-revenue-to-
increase-substantially/
 Ihaas .(2010). ViaForensics: viaForensics uncovers PayPal application
vulnerability. Retrieved from http://viaforensics.com/press-
releases/viaforensics-uncovers-paypal-application-vulnerability.html
 Marakas G. & Obrien J. (2009). Management information systems. pp. 473-
474. McGraw-Hill
 PayPal. (2011). Welcome to the press center. Retrieved from
https://www.paypal-media.com/who
 Prince, B. (2010). PayPal Patches Critical Security Vulnerabilities. Retrieved
March 2011 from http://www.eweek.com/c/a/Security/PayPal-Patches-
Critical-Security-Vulnerabilities-807636/