PayPal was founded in the late 1990s and initially comprises of two separate entities. Later these two companies consolidated together in 2000 into a single entity and was brought over by eBay for $1.5 Billion in 2002. Today PayPal is one of the leading online payment service providers with more than 250 million users in 190 markets. Countries which are not supported by PayPal are Afghanistan, Bangladesh, Iraq, Montenegro, Pakistan and those on the U.S economic sanction list.
The PayPal payment system is well known to be very reliable and easy to use. Once the eWallet account is opened and verified there is no special management required on the part of clients. Provided clients have enough balances in their PayPal account and funds can be transferred almost instantaneously to other PayPal account holders who accept PayPal as a payment method. You can also link your credit card to your PayPal account. This removes the need for PayPals’ clients to post their credit card details all the time. In addition PayPal account clients can also link their account to their banking account. With these linkages you can easily top up your PayPal account balance with either funds from your banking account or credit card.
Although PayPal is owned by an American firm and is licensed by the U.S regulatory authorities as a money transmitter under the Federal Reserve Board Regulation E it aspires to keep its global operations in line with local regulatory requirements. E.g. operations within the Europe Union are managed by Luxembourg-based bank under PayPal in line with the EU‘s MiFID. Other international operations are managed by their Singapore based office.
Although simple to use this does not mean security at PayPal is sloppy. Their system is protected with one of the strongest encryption system around. Moreover any out of their ordinary suspicious activity from an account will immediately cause an alert leading to the freezing of the account until the identity of the account holder is verified.
Despite the clear benefits of PayPal it is not widely accepted by most Binary Options Brokers because of the high transaction fees - around 6.4% - which it charges on each transaction.