X.com Is Reinventing Itself as the Electronic Payments
Bank Technology News (10/00) Vol. 13, No. 10 p.47; Hackett, John

X.com has expanded its PayPal electronic payment service so that it now offers business-to-business, consumer-to-business, and person-to-person services. Earlier in the year, the company announced plans to buy First Western to obtain a bank charter and has been offering banking services with 260,000 online bank accounts. But the PayPal accounts, which are free to consumers, have been its main focus, increasing by about 20,000 new users per day. X.com has recently boosted its sensitivity to security issues after a widely reported security breach in January. X.com merged with PayPal in April, receiving $100 million in venture capital, led by Madison Dearborn Capital Partners. At the time of the merger, the companies had a total of 500,000 registered users for their payment services. That number has grown to 3.3 million, giving X.com leverage in the online market. X.com's consumer-to-business payment option has attracted 150,000 small online businesses, charging them a fee of 1.9 percent of purchase prices. X.com employs 500 workers, conducts more than 100,000 transactions a day, and has 15,000 users with an annualized transaction volume of $1.6 billion. It has recently introduced a business-to-business payment option, and this fall it will launch its international service.


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