The fast development nowadays of web services on the internet is incredible. Lots of people use the world wide web to buy, sell, market, show ….etc. In other words, Web 2.0 is dough. This will lead us to the last pattern of Web 2.0 applications is lightweight models and cost-effective scalability. We need to understand this pattern by giving a short description to be comprehended. In brief “small is the new big”. This will happen when alliance between technology and business models.
Our web 2. application this week of using lightweight models and cost effective scalability is going to be PayPal. It was one of the first services exchange money online. It was popularized and later was acquired by eBay for $1.5 billion in October 2002. Currently, PayPal is one of the most widely recognized payment systems on the Internet. Moreover, it is used in online auctions and stores as a way to control and manage payments. Furthermore, the users of PayPal can send money to anyone with an email address or mobile number. PayPal has survived throughout the years by charging fees to its sellers and buyers in online auctions and those making donations via the service are not charged these fees. eBay expects PayPal revenues to double by 2011 to roughly $4-5 billion in sales. PayPal reported $2.4 billion of sales last year, or about 30% of eBay’s $8.5 billion of overall sales.. Finally, paypal has three types of accounts which are personal, premier and business and all of them free joining and the user of paypal can upgrade the account at any time with free charge.
Regarding the comparing, there is recently alternate service. For instance, Google’s Checkout has garnered some of the attention in this space for similar efforts with lower fees.