Paypal Marketing Strategy

Paypal Marketing Strategy – Marketing Strategy of Paypal: Paypal was founded in 1998. It became a wholly-owned subsidiary in 2002. In 2015, Paypal Holdings Ltd. was created as an independent entity. It has 197 million active customer accounts, 15 mn of which are merchant accounts. 

The American company operates in over 200 countries and more than 25 currencies. It is a technology-based business that uses online payments to replace traditional paper-based models for money transfers via electronic platforms. 

Paypal At A Glance – Marketing Strategy of Paypal

Paypal Marketing Strategy

[wp-svg-icons icon=”office” wrap=”I”] Company : Paypal Inc.

[wp-svg-icons icon=”user” wrap=”I”] CEO: Dan Schulman

[wp-svg-icons icon=”user” wrap=”I”] Founder: Peter Thiel | Luke Nosek | Max Levchin | Elon Musk | Yu Pan

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: December 1998, Palo Alto, CA

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: San Jose, California, U.S.

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: US$21.45 billion 

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: US$2.459 billion

[wp-svg-icons icon=”users” wrap=”I”] Number of employees : 26,500

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: Credit cards, payment systems

[wp-svg-icons icon=”globe” wrap=”I”] Website:

Paypal Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Google Wallet | Wepay | 2Checkout | | ProPay | Payoneer

Paypal Fun Facts: PayPal is processing around $315.3 million in payments per day. On average, the payments platform is seeing upwards of over 5 million transactions a day.

Marketing Strategy of Paypal

Paypal Marketing Strategy

Paypal’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Paypal? Let us discuss.

Segmentation, Targeting, Positioning – Paypal Marketing Strategy

Segmentation allows you to group the market into smaller groups with similar preferences/ choices. Paypal uses demographic and psychographic segments strategy to target other customer segments. 

To address changing requirements, Paypal has used the Differentiating Strategy. 

It employs a product class positioning strategy to ensure that the brand is visible in all markets. 

Paypal Mission Statement

 “Build the web’s most convenient, secure, cost-effective payment solution, build the web’s most convenient, secure, cost-effective payment solution”

Paypal Vision Statement

“Democratize financial services”

Paypal Tagline

“There’s a New Money in Town; Paypal is New Money”.

Competitive Advantage – Paypal Marketing Strategy

Unique Platform:

It offers a two-sided unique platform that provides an end-to-end unique interface to help consumers and merchants do digital and mobile transactions seamlessly, and in a seamless manner. 

Global Presence:

The company has been aggressively expanding its operations to more than 200 countries. This has allowed it to not only increase its revenues but also improve its platform/ interface which is a result of its exposure in developed/developing markets. 


The company has more than 18,000 employees worldwide, which allowed it to process the $359 billion Total Payment volume as of December 2016, with 6.1 billion payments transactions. 

BCG Matrix – Paypal Marketing Strategy

The Company has 2 businesses, namely digital payment platforms for merchants and consumers. 

It connects millions of merchants and customers worldwide through a single platform that processes payments. 

Both business segments have been successful in implementing payment solutions that work for them.  

Distribution Strategy – Paypal Marketing Strategy

Paypal has created user interfaces that allow merchants and consumers to pay using the same payment platform. They also facilitate transaction processing and help with receiving payments from different networks and markets around the world. 

It integrates the Consumer digital wallet with a merchant account to reduce regional borders digitally.

Brand equity – Paypal Marketing Strategy

It has been ranked 380 the th on the Forbes list of global 2000 brands (as of May 2017), while it is ranked 90 on Interbrand 2016. According to the market capitalization value method, the brand is valued at $51.7 billion and generates revenue of $10.79 trillion. The brand is a pioneer in mobile and digital payments platforms, supporting both consumers and merchants. 

Competitive Analysis – Paypal Marketing Strategy

Paypal faces competition from other digital platform players, as the global digital payments industry is highly competitive. 

Paypal is a digital payment company that competes on factors like convenience of transactions, customer support, brand, and user-friendly interface. It also can retain, attract and engage parties through its platform or offerings. 

ClearXchange is a competitor to it. It also competes with Apple PayPal, Google wallet, and Wepay. 

Market Analysis – Paypal Marketing Strategy

Digital payment presents new challenges for both developing and developed countries. This can impact the company’s growth. Customers and merchants find it easier to use platforms than other mediums like cards, POS, etc. 

Customer Analysis – Paypal Marketing Strategy

The Customers of Paypal are tech-savvy individuals who search for digital mediums/ e-platforms to pay and receive money from anywhere in this world. It offers merchants/ B2B companies an end-to-end solution for authorization, settlement, and immediate access to funds. 

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