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PayPal Holdings, Inc. is an American company operating a worldwide online payments system. Online money transfers serve as electronic alternatives to traditional paper methods like checks and money orders. PayPal is one of the world's largest internet payment companies.The company operates as an acquirer, performing payment processing for online vendors, auction sites and other commercial users, for which it charges a fee.ayPal's corporate headquarters are located in San Jose, California, at eBay's North First Street satellite office campus. The company's operations center is located in Omaha, Nebraska, which opened in 1999. Since July 2007, PayPal has operated across the European Union as a Luxembourg-based bank.