Why did eBay purchase PayPal?

PayPal is a US online payments system for online vendors, auction sites and other commercial users. It was founded in 1998 as Confi nity, a company that developed security software for handheld devices, and merged in 2000 with Xcom, an online banking company, taking its current name in 2001. PayPal allows customers to register details of their credit card or bank account. Then, when customers buy something on the internet, they simply enter their email account and the purchase price. The amount is then taken from their credit card or bank account. The advantage is that these details are not disclosed to the vendor.