Buce Marjorie C

OOA

SYSANAL

Case Study 1

PayPal

Founder, Max Levchin

PayPal is founded by Max Levchin and Peter Theil. It is a security company founded in1998.

When Levchin was in college, he focused more on security rather than on payments. Then he move to Silicon Valley to establish a company.

While he’s at Silicon, he didn’t know what he wants to do with his life. Then he went to a lecture where he met Peter, And from that they became friends until Peter came up with the idea of letting Levchin to start a business. Levchin agreed but he doesn’t have a CEO to run his company, so he called peter and he voluntaried himself to be the CEO.

            The original plan of Levchin was to focus into developing software for handheld devices. But they reverse-engineered it and wrote an emulator for every single type of them for a Palm Pilot. He emulated the whole thing on a Palm Pilot so his friends were able to use it. When Levchin posted it on the Web, he got hundreds and then thousands of downloads from different people. Just then, he realized that it could be his business.

At the start they had a tough time in getting an implementation of a crypto graphic algorithm on a palm pilot. Finally they up with the idea of storing money into handheld devices.

Then they had this famous Buck Beaming. On the first round of financing it was transferred to them by the use of palm pilot. On that day many tv cameras were there to interview them.

            When they got the funding they hired people. Then they built a demo in where they could do everything on Palm Pilot. Th4n more people used their product

In 2000, it was the year for fraud many money were being lose by them. So they decided to figure out what would be the resolution they could do. From that moment Peter came back as the CEO. Pay Pal reached it success and this company became thriving because they dealt with the problem.