PayPal Marketing Strategy & Marketing Mix (4Ps)

Published in Services category by MBA Skool Team

Here is the marketing strategy of PayPal which analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).

PayPal Product Strategy:

The product strategy and mix in PayPal marketing strategy can be explained as follows:

PayPal is a system which allows online transfer of money in 25 currencies across continents. Business enterprises and individual users can easily transfer or receive money using PayPal. They have two main systems credit cards and payment systems as a part of it s marketing mix product strategy. An individual user can easily shop on eBay or any online site but the card details won’t be shared with online store. With PayPal you can efficiently manage taxes and make financial transactions online.

PayPal offers the following services to both individuals and enterprises:

• Payment Gateway for commercial enterprises, online and auction sites

• Online vendors can use their Payment processors

• Individual users can use it as a payment bank

• Efficient cross-broader transaction

Business can use PayPal to get paid via invoice, on marketplaces and even on their own websites. Each product or service has a simple and straightforward fee to be paid. PayPal users get reward points on their credit or debit cards.

Image: flickr-photos/geoliv/

PayPal Price/Pricing Strategy:

Below is the pricing strategy in PayPal marketing strategy:

Every user and enterprise needs to pay fees for using any of the PayPal services. A simple fee inclusive of currency conversion has to be paid without any transaction fees.

Users earn reward points on their credit or debit cards on doing so. When businesses use PayPal to get paid overseas there are no cancellation, monthly or set-up fees. For receiving web payments and invoices businesses have to pay a fee of 4.4%+Fixed Fee whereas for receiving eBay payments they have to pay 3.9%+Fixed Fee. Based on transaction the fee amount keeps changing i.e. low rates for larger volumes. PayPal also offers discounted merchant rate for businesses that have monthly sales volume above US$3000. By following this simple and efficient pricing strategy they have earned impressive revenues of US$9.24 billion in 2015. This covers the pricing strategy in the marketing mix of PayPal.

PayPal Place & Distribution Strategy:

Following is the distribution strategy in the PayPal marketing mix:

PayPal is an online system that operates in more than 200 countries with over 180 million active accounts which includes both businesses and individuals. PayPal holds funds in 25 currencies as well as allows smooth money transaction across borders. PayPal enables e-commerce customers to easily shop online. However, PayPal is banned in certain countries like Ghana, Turkey, Pakistan, Crimea, Afghanistan and Iraq. Besides these, Japan was forced to suspend personal account holders making them pay a business fee for all transactions on PayPal as per the regulatory norms. Even in India PayPal changed the user agreement norms as per Reserve Bank of India regulations.

The per transaction limit was reduced and PayPal even disabled transfer of money for personal payments forcing users to pay a transaction fee.

PayPal Promotion & Advertising Strategy:

The promotional and advertising strategy in the PayPal marketing strategy is as follows:

PayPal mainly being online uses digital marketing strategies to promote its products and services. For e-commerce customers PayPal has made payments easier. It has a strong presence on the Internet with visibility on various social media platforms. The features that PayPal offers makes people and businesses actually want to know more about it and invest in it for long term. Their marketing online educates customers how to use PayPal to make life easier in today’s world. PayPal being an important product nowadays does not need to spend much on promotions yet they do their bit to increase customer base and today have over 180 million active accounts worldwide.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of PayPal.


PayPal has evolved over the years since its inception and has over 18000 employees in the company. Dan Schulman is the President and CEO of Paypal. PayPal is accessed by people all over the world. Close to 200 million active accounts or users are using PayPal.

Physical Evidence:

PayPal being an online payment system is present on the internet and used by people in nearly 200 countries worldwide. PayPal has both business and individual users. They provide customers a unique experience of paying or transacting with customers online, in stores or on mobiles.


PayPal provides services for individual users as well as businesses. Although it is banned in certain countries, it is still widely used in the rest 200. PayPal is a fast and easy way for business to transact with clients online or on mobile devices. Individual users can use it as an online bank to store their money to buy online on websites with their cards. Each user gets reward points based on the online transaction. Hence, this concludes the PayPal marketing mix.

About PayPal:

In December 1998, PayPal Holdings Inc was founded in United States of America as Confinity by Max Levchin, Peter Thiel, Luke Nosek, Ken Howery and Elon Musk. It is an online payment system used worldwide by individuals as well as enterprises. Online vendors, commercial users and auction sites use PayPal by paying a fee. This online transfer of money helped get away with checks and money orders. People can sell and receive services from people living in various continents through PayPal. It was a Public Company till 2002 until it became a subsidiary of eBay. But by 2014 eBay decided to make PayPal an independent company which became successful by mid-2015 and completed by July 18, 2015.

PayPal operates a secure and technology payments platform to transact with customers online and even on mobile devices. Braintree, Paydiant, Venmo, PayPal credit and Xoom Corporation are some of its subsidiaries.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to PayPal. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

Continue Reading:

The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

Share this Page on:
Facebook ShareTweetShare on Linkedin