PayPal Introduces Student Account

New Product Aims to Help Teens Learn to Manage Money Wisely
SAN JOSE, Calif.--(Business Wire)--
Just in time for back-to-school season, PayPal today announced the launch of the
Student Account, a fast and secure way for U.S. teens to shop online using
PayPal and in stores with the Student Card, while providing parents with a
variety of monitoring capabilities.

The Student Account eliminates the hassle of everyday money exchange between
parents and teens, while giving teens the chance to learn good spending habits
through the experience of being responsible for their own money. Parents can
establish up to four PayPal sub-accounts for their teens, transferring funds
into those accounts when needed, on a one-time or recurring basis.

Since the parents` and teens` accounts are linked, parents have full visibility
into their teen`s account balance, spending habits and budgeting skills. Parents
don`t have to worry about credit impact because the Student Account only allows
the teen to spend what is available in their account.

"As a parent I understand the challenge and stress of raising kids that are
financially responsible," says Don Fotsch, PayPal vice president of customer
experience and design and parent of six, ranging in age from 8 to 19. "With the
Student Account, I know I can give my kids a level of financial independence
while remaining on top of my kids` spending."

The Student Account offers many features to help teens learn by doing - with
their parents` guidance:

* Permissions: Parents can set permissions for individual teens to designate how
the account can be used. They can also require that their approval is required
when a teen receives money in the account.
* Mobile Features: Parents can use their mobile phones to check account balances
and transfer money to their teens` account. Additionally, teens can check their
account balance and easily request money from their parents via simple text
message.
* Alerts: Parents can receive alerts notifying them when their teens` payments
exceed a certain amount or when a specified low balance is reached.
* Built-in security: As with all PayPal accounts, the Student Account allows
teens to shop online without exposing any financial information.

The Student Account is currently available in the United States. To learn more
or sign up, please go to https://www.paypal.com/StudentAccounts.

PayPal`s Back-to-School campaign runs through August 24. Customers can receive
up to 40 percent off purchases from major retailers, such as American Eagle
Outfitters, Dell, and Sears, as well as free shipping from select merchants for
eligible purchases made through PayPal. Go to https://www.paypal.com/makeitcount

About PayPal

PayPal is the faster, safer way to pay and get paid online. The service allows
members to send money without sharing financial information, with the
flexibility to pay using their account balances, bank accounts, credit cards or
personal financing. With more than 75 million active accounts in 190 markets and
19 currencies around the world, PayPal enables global ecommerce. PayPal is an
eBay company and is made up of three leading online payment services: the PayPal
global payments platform, the Payflow Gateway, and Bill Me Later. More
information about the company can be found at https://www.paypal.com.

PayPal
Jamie Patricio, 408-967-6367
jamiep@paypal.com
or
Access Communications for PayPal
Keely Fox, 415-844-6284
kfox@accesspr.com

Copyright Business Wire 2009