Innovation - PAYPAL make the life more easier - Essay Example

In 2002, PayPal was acquired by EBay Inc. and made the official payment channel of the worldwide sites of EBay electronic commerce business wing. PayPal is chosen as the innovation topic for the essay because the establishment of PayPal was followed by huge success and popularity of the same in the international financial services and online payments domain. The essay would include a discussion of why PayPal can be considered to be a radical innovation in the electronic commerce and financial services domain.

A review of the different literary works presented on the topic of innovation is done to link the theories of innovation to the practical example of PayPal as a breakthrough innovation. A section of the essay would include a discussion of the conditions and background which led to the establishment and success of PayPal in the global business platform. The essay would be suitably concluded with a summary of the findings from the report and with a small discussion regarding the future strategies that are likely to be used by PayPal for continued success and sustainability.

PayPal was initially set up as a technology push innovation and later ensured continued success through sustainable innovative practices. This technological innovation was a result of the combination of technological advances and improvement in the use of materials and processes within different businesses. The innovation was fuelled and supported by the boom of electronic commerce activities across the globe. The cross border electronic commerce transactions conducted by millions of people across the globe created the need for a unique, safe, secure and globally usable online payment transfer domain.

The innovators of PayPal tapped in this market need and used the advances in technology like access to internet, development of financial services domains and electronic commerce businesses to create the online