PayPal: The Legal Status of P2P Payment Systems

Abstract

The paper discusses one of the most successful examples of the Consumer-to-Consumer (C2C) model, found in consumer friendly payment systems such as PayPal. People who are exchanging goods through internet auctions need secure and reliable methods to conduct monetary transactions to pay for their online purchases. PayPal is set to become the standard for online payments between consumers and small businesses in the coming years, and it is at the moment the leader in this field. The present paper will analyse the C2C payment system exemplified by PayPal, and it will explore some of the most pressing legal questions which need answering, such as the regulatory status of PayPal.