Lightweight Models and Cost Effective Scalability – Paypal

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.

Reference list:

Google’s Checkout


Business Insider

  1. #1 by Dean Jackson on 05/16/2011 - 1:35 PM

    Was Paypal a cheap service to develop? I would have thought that with their business being based about making payments, the security steps they would have had to develop and implement would not have been cheap.

  2. #2 by Louay on 05/17/2011 - 8:46 PM

    Hello Naif,
    I made a paypal account and I am interested to do shopping via ebay. But I am not does paypal charge same amount of total price or the charge extra fro the service? Also does paypal take the amount from my credit card in order to pay. And what will happen if there is no money on my credit card??
    Thanks a lot.

    • #3 by Naif Bindayel on 05/18/2011 - 10:48 AM

      Hi Louay interesting questions I will try to answer what I know. Paypay charges you some extra money for the service not much.If your credit card is debit you can buy if there is no dough on it .

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