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Prepared by: Dr Pritam Gajkumar Shah Moderated by: Dr Min Gurung November 2021 Assessment Details and Submission Guidelines Trimester Term 3 2021 Unit Code BN205 Unit Title Trimester 3, 2021 -Project...

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Prepared by: Dr Pritam Gajkumar Shah Moderated by: Dr Min Gurung November 2021
Assessment Details and Submission
Trimester Term 3 2021
Unit Code BN205
Unit Title Trimester 3, 2021 -Project Management
Assessment Type Individual Assessment
Assessment Title PayPal Case Study
Purpose of the
assessment (with
ULO Mapping)
a. Apply project management skills as a strategic tool, framework,
or methodology for business development
. Demonstrate project leadership skills; identify and assess risk
in designing and executing a major project
Weight Assignment 1b 10%
Total Marks Assignment 1b 40 marks
Word limit 1500 minimum
Due Dates Assignment 1 b- 7/1/2022
• All work must be submitted on Moodle by the due date along
with a completed Assignment Cover Page.
• The assignment must be in MS Word format, 1.5 spacing, 11-
pt Cali
i (Body) font and 2 cm margins on all four sides of
your page with appropriate section headings.
• Reference sources must be cited in the text of the report, and
appropriately at the end in a reference list using IEEE
eferencing style.
Extension • If an extension of time to submit work is required, a Special
Consideration Application must be submitted directly
through AMS. You must submit this application within three
working days of the assessment due date.
• Further information is available at: Assessment Policy and
Procedure | Melbourne Institute of Technology, Melbourne,
Sydney Australia (
• Academic Misconduct is a serious offence. Depending on
the seriousness of the case, penalties can vary from a
written warning or zero marks to exclusion from the course
or rescinding the degree. Students should make themselves
familiar with the full policy and procedure available at:
Assessment Policy and Procedure | Melbourne Institute of
Technology, Melbourne, Sydney Australia ( For
further information, please refer to the Academic Integrity
Section in your Unit Description.
Prepared by: Dr Pritam Gajkumar Shah Moderated by: Dr Min Gurung November 2021

[Assignment 1 Part B]

Please read the article below and answer the questions-

PayPal case study (source:

October 1999 saw the modest launch of a simple home page that would grow into
one of the Internet's major success stories - a person-to-person payment (P2P)
network called PayPal. As with many success stories, the growth of this good idea
started with a slightly different and less successful proposition, and within a few
months of its launch, had begun its heady rise in attracting millions of customers at
amazing rates.

Peter Theil and fellow co-founder Max Levchin had teamed up in 1998 (aged 30
and 26 respectively) to start a company called Field Link that specialized in providing
encryption software for wireless devices. The technology had nurtured the concept of
moving money using devices such as palm-pilots. Theil (CEO of PayPal) was a chess-
loving intense libertarian that had studied law at Stamford University. When
approached by Levchin (CTO of Paypal), he was running a hedge fund.

Demand for their initial concept was sparse and the company changed direction to
other areas as well as renaming itself Confinity. It was at that point that an application
called PayPal was born; allowing users of handheld devices to beam money to each
other. The company had a strong start with a capital investment of $3 million from
Nokia. Despite this initial success, the original idea did not blossom and in 1999, both
increasingly realized that there was not an easy way of making a payment on the
Internet. Additionally, not everyone had a wireless device such as a palm-pilot, but
almost all net users did have an e-mail address.

From these modest beginnings, a Web version of the PayPal application followed
and started trading using established networks - e-mail and a universal cu
ency, the
US Dollar — whilst building a new person-to-person network platform. Without a doubt,
one of the key observations and drivers were online auctions, such as eBay, which
PayPal launched its service on in early 2000.Thiel had noted that as late as 1998,
almost 90% of eBay's transactions were settled with checks or money orders.

The concept was simple. Money would be exchanged via cyberspace - all users
needed was an e-mail address, a credit card or bank account number and an Internet
connection. Recipients of funds would receive money in a new account (if they did not
already have one) and PayPal would debit the sender's account (credit card or bank
account) respectively. Anyone who received money therefore automatically became a
new PayPal client.

Prepared by: Dr Pritam Gajkumar Shah Moderated by: Dr Min Gurung November 2021

The viral growth of PayPal was
eathtaking. By end of 1999 there were 10,000
users. Two months later, that number was 100,000. By using confidence pricing
techniques (the service was effectively free initially, with revenues being garnered from
the cash locked into the PayPal system) new users were attracted to the service. Even
when pricing models were introduced, these were much more attractive than those
levied by the credit card companies. In March 2000, merged with PayPal
electing to ditch its banking business and its
and name in favour of the PayPal

At the time security was a continual area of focus, however Paypal was one of the
propositions that forged ahead without the authentication of sellers. Although this
afforded first mover advantages, the company had to work hard on enhancing risk
management techniques and providing greater focus on authenticating sellers at the
site. Although eBay continued to be one of PayPals largest partner sites (generating
approx 60% of revenues), it was already connected to over 2.6 million merchants and
continued to grow at a fast pace. 15th Fe
uary 2002 was also a significant day for
PayPal as it went public, raising another $90 million with its shares surging 54% on
the first day of trading, despite the downturn in the dotcom boom.

(Total marks 40)

1.All questions ca
y equal marks.
2. Justify the document properly before submission.
3. Use the diagrams, images wherever necessary.
4. Provide the references in the description in IEEE format
5. Word limit is 1000 words.

Q1. Discuss the risk factors involved while launching the PayPal.

Q2. How PayPal solved the problem of user identification? Which method they used
for the user identification?

Q3. Discuss in details various merchant services provided by PayPal.

Q4. Open your PayPal account and upload the screen.

Prepared by: Dr Pritam Gajkumar Shah Moderated by: Dr Min Gurung November 2021
Marking Guide:
Criteria Description Marks
Q1 Any 5 risks factors with
ief explanation. 10
Q2 User identification various methods with diagrams 10
Q3 Various online ecommerce services provided by PayPal
with block diagrams
Q4 Screen shot of the user PayPal account 10
Answered Same DayJan 19, 2022


Bidusha answered on Jan 19 2022
42 Votes
PayPal Case Study         4
Answer 1
PayPal is primarily a payment provider, and the most significant risk they face is that one or both parties to the transaction may fail to meet their obligations. A fraud issue, such as identity fraud, is the most common on the consumer side. In other circumstances, they are whom they say they are but fail to pay because their bank account is closed, or they make a series of claims claiming they did not get products when they did. The seller, on the other hand, does not fulfill his promise, receives payment but does not deliver the items. They provide buyers complete security against fraud, as well as considerable protection for businesses. Credit risk, on the other hand, is a separate issue. PayPal provides loans to both people and businesses, mostly but not only in the United States. Payment Gateway Services are provided by MasterCard to minimise the risk of fraud. It is best suited for corporate users, although it may also be used by individuals. This fraud and risk control framework may be used internally or externally.
PayPal's success began with resolving a major issue that businesses and governments faced: fraudulent activity. The employees at PayPal solved this challenge by detecting patterns and other recu
ing actions crooks tended to perform. PayPal established value for customers by establishing trust. Many of PayPal's rivals have not dealt with the problem as successfully as they have, and as a result, have vanished from the market. PayPal's security has improved significantly as a result of its efforts to prevent fraudulent operations, and its fraud rates have dropped below 0.5 percent [1]. This is equivalent to an E-business fraud rate of 1.3-2.6 percent on average. As per a survey directed in Kungsbacka in 2016, 14% of respondents trust that the most fundamental variable to think about when making a web-based buy is that the installment stage has a well-working security segment [2]. PayPal's compensation and offer protection gives insurance to its clients. PayPal can discount the entire cash on the off chance that things are not conveyed after a client has bought something or then again assuming the items contrast altogether from the vender's depiction. Assuming the merchant gets an unlawful installment or then again in the event that a client grumbles that the things were not conveyed, the protection will repay it. As indicated by a survey directed in Kungsbacka in 2016, reimbursement protection was the main explanation 67% of respondents utilized PayPal, trailed by security (16%) [3]. The survey additionally uncovered that 67% of respondents accept that a discount ensures in the event that the things don't show up or are damaged is the most critical component to think about when making a web-based buy [4]. PayPal allows customers to purchase safely at online retailers as well as on consumer-to-consumer sites like eBay. They ensure that the transaction is completed appropriately and that money is only transfe
ed if everything is in order. PayPal is utilised by both individual and corporate users, although it is more popular in the customer-to-customer market. PayPal is the world's leading payment platform in this industry, with a growing number of corporate customers. In the United States, moreover, 70% of all internet buyers have a PayPal account. PayPal is used by 78 percent of customers for customer-to-customer transactions and 12 percent for customer-to-business transactions. PayPal allows users...

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