Introduction
With the advent of technology in recent years, technology is becoming more important and is fully participate in our human lives or without any exaggeration, it’s becoming more indispensable in human daily life. In this era of globalization, the use of technology is more familiar among one another in the world especially the use of internet. Everything nowadays can be settling thorough the internet such as online business, e-recruiting, e-banking and even making or settling payment can be make thorough online as well.
With the flourishing of the internet, online payment system has become wildly popular among people and companies of all sizes. More and more company are beginning to accept payment through online exclusively due to ever improving convenience and efficiency of different sources available. What is a payment system provider? A payment service provider (PSP) offers merchants online services for accepting electronic payments by a wide variety of payment ways such as credit card, or bank-based payments such as direct debit, bank transfer, and real-time bank transfer based on online banking. Some PSPs provide unique services to process other next generation methods (Payment systems). One of the forms of payment system is allowing a 3rd party to complete the online transaction for clients or customers. These companies are called payment service provider. A good example is PayPal or WorldPay. (Note PayPal also offers its own payment system). PayPal is the online payment provider company we choose as the case study and case development for our assignment.
PayPal is a result founded by Peter Thiel and Max Levchin in 1999 under the name Confinity. The idealistic vision of the company was one of a borderless currency free from governmental controls. However, PayPal's success quickly drew the attention of the hackers, scam artists and organized crime groups, who used the service for frauds and money laundering. New security measures stemmed the...