May 6, 2019

Business Model Canvas – Paypal

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A business model is defined as:

“the rationale of how an organization creates, delivers and captures value.” 

Alex Osterwalder et al invented the Business Model Canvas to help individuals and organizations conceptualize how to analyze, create, and develop business models.


Written in 2011 on the old Lumos blog

Value Proposition

Secure, multi-currency, multi-payment online transaction platform

Not setup costs or fixed monthly fees


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“In order for the business model to be successful, there needs to be a significant user base on both sides of the transaction. With PayPal, buyers were excited to use the service because it made it much easier to buy something on e-Bay. Once buyers were on board, merchants and sellers began accepting PayPal because of the increased transaction volumes and the new payment options. With substantial user adoption on both sides of the transaction platform, PayPal began to prove the viability of its business model.”

Original LFB Post (2010)

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