I'd have FULL confidence in the security of their site. On average, they're signing up 9,000 people a DAY. Driving PayPal's torrid growth is a simple joining of two proven technologies: e-mail and the credit-card network. Registered users can send a payment to anybody with an e-mail address just by writing a dollar amount into an online form. When the e-mail is sent, the payment is charged to the sender's credit card or bank account. Registration takes five minutes. If the person on the other end isn't a registered PayPal user, that's OK. The receiver just fills out the form attached to the e-payment to tap the money, which is already waiting in a PayPal.com account in the receiver's name.
Wall Street's Goldman Sachs Group Inc., together with a fund tied to the West Coast Web incubator idealab!, recently invested $23 million in PayPal.com during its second round of venture financing. Its first round came from Nokia Corp., the Finnish mobile phone giant, and Deutsche Bank AG of Germany
"Sometimes I worry that we're too obsessed with security," concedes Mr. Thiel. Other online payment systems have received bad press over lax security. But long before last week's hacking attacks, PayPal sought to keep its system secure by hiring a board of advisers staffed with heavyweights in encryption technology. One is Stanford University Prof. Martin Hellman, one of the brains behind the most commonly used form of encryption on the Internet. Another is Stanford Prof. Dan Boneh, who leads a team of researchers who specialize in code breaking.
EVERY member's account is insured up to $100,000 dollars through Traveler's Insurance. And one of the best things about it in my opinion, is that you earn 4.2% interest on the money that's sitting in your account. Last time I looked at my Bank's saving account rate is was 2.6%. Also keep in mind that you receive $5 bucks for each person that you refer to PayPal.
I think this is the future in purchasing or sending monetary transactions through the net. I've been using it for a little over six weeks, and I've been pretty damn impressed...