PayPal is an international e-commerce business that allows users to make payments and money transfers online. PayPal, which became the payment method used by a majority of eBay users, was acquired by eBay for $1.5 billion in October 2002.
PayPal formed after Internet financial services company X.com acquired Confinity in March 2000. Confinity was founded in 1998 by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery and in 1999 launched a money transfer service called PayPal. When X.com acquired Confinity, X.com founder Elon Musk decided to focus on the PayPal money service; the company was renamed PayPal and expanded rapidly in 2001, primarily as a result of its use on eBay.