Confinity Inc. was an American software company based in

Silicon Valley Silicon Valley is a region in Northern California that serves as a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the geographical areas San Mateo Cou ...

, best known as the creator of

PayPal PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper ...

. It was founded in December 1998 by Max Levchin, Peter Thiel, and

Luke Nosek Luke Nosek (; born 1975/1976) is a Polish-American entrepreneur, notable for being a co-founder of PayPal. Biography Łukasz Nosek was born in Tarnów, Poland. After emigrating to the US, he earned a B.S. in Computer Engineering from the Uni ...

, initially as a Palm Pilot payments and

cryptography Cryptography, or cryptology (from grc, , translit=kryptós "hidden, secret"; and ''graphein'', "to write", or '' -logia'', "study", respectively), is the practice and study of techniques for secure communication in the presence of adv ...

company.

Company

Many of Confinity's initial recruits were alumni of ''

The Stanford Review ''The Stanford Review'' (also known as ''The Review'') is a student-run newspaper that serves Stanford University in Stanford, California. It was founded in 1987 by Peter Thiel and Norman Book. History In 1987, after around 500 students particip ...

,'' also co-founded by Thiel, and most early engineers hailed from the

University of Illinois at Urbana-Champaign The University of Illinois Urbana-Champaign (U of I, Illinois, University of Illinois, or UIUC) is a public land-grant research university in Illinois in the twin cities of Champaign and Urbana. It is the flagship institution of the Un ...

, recruited by Levchin. Early investors included Nokia Ventures,

Deutsche Bank Deutsche Bank AG (), sometimes referred to simply as Deutsche, is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York St ...

, and William N. Melton, the founder of

CyberCash CyberCash, Inc. was an internet payment service for electronic commerce, headquartered in Reston, Virginia. It was founded in August 1994 by Daniel C. Lynch (who served as chairman), William N. Melton (who served as president and CEO, and later ...

. Confinity's second office, 165 University Avenue in

Palo Alto, California Palo Alto (; Spanish for "tall stick") is a charter city in the northwestern corner of Santa Clara County, California, United States, in the San Francisco Bay Area, named after a coastal redwood tree known as El Palo Alto. The city was es ...

, is also known for being the former office of

Google Google LLC () is an American Multinational corporation, multinational technology company focusing on Search Engine, search engine technology, online advertising, cloud computing, software, computer software, quantum computing, e-commerce, ar ...

and

Logitech Logitech International S.A. ( ; often shortened to Logi) is a Swiss multinational manufacturer of computer peripherals and software, with headquarters in Lausanne, Switzerland, and Newark, California. The company has offices throughout Europe ...

. Confinity launched its milestone product,

, in late 1999. Confinity merged with X.com, founded by

Elon Musk Elon Reeve Musk ( ; born June 28, 1971) is a business magnate and investor. He is the founder, CEO and chief engineer of SpaceX; angel investor, CEO and product architect of Tesla, Inc.; owner and CEO of Twitter, Inc.; founder of The B ...

, in March 2000. The merged company became known as X.com because this was thought to be a name with broader long-term potential than Confinity or PayPal. However, surveys showed that a majority of consumers considered the name X.com vague and potentially pornographic and preferred that the company simply be called PayPal. After a corporate restructuring, which involved the removal of Elon Musk from the company, the company adopted the name PayPal Inc. PayPal made an Initial Public Offering on the

NASDAQ The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...

stock exchange on February 14, 2002. The company was purchased by

eBay eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became ...

in a $1.3 billion stock deal announced on July 8, 2002. eBay and PayPal became separate companies in 2015.

References

{{Reflist Financial services companies established in 1998 PayPal Companies based in Champaign County, Illinois Financial services companies disestablished in 2000 2000 mergers and acquisitions

Company

See also

References