In 2000, the number of eBay transactions settled electronically was “practically zero” (http://news.cnet.com/2100-1017-941964.html). By 2002, the year eBay acquired PayPal, eBay reported that 638 million items were listed on its site (eBay 2002 Annual Report), gross merchandise sales totaled nearly $15 billion (eBay 2002 Annual Report ) and 40% of transactions were settled with electronic payments (http://news.cnet.com/2100-1017-941964.html). PayPal, and other electronic payments services, provided a way for buyers and sellers to settle online transactions in real time, thus eliminating the inefficiency of mailing checks and waiting for them to clear. Built on top of existing banking and credit card infrastructure, electronic payment services in developed markets introduced convenience and security that helped drive online and, later, mobile transactions. By the end of 2009, PayPal reported a net total payment volume (on and off eBay) of $71 billion (eBay 2009 Annual Report).

How Online Transactions created Global Opportunity

The ease, confidence and trust with which many of us, particularly in developed markets, transact on the web has given way to new models that are transforming how we connect with and support causes and people - from artists to charitable causes, to politicians to aspiring entrepreneurs and contract workers. Below, we will highlight two significant examples. First, ‘crowdfunding,’ the term used to describe a model that aggregates many often small payments gathered from a group of people (often unrelated) to support a common effort. Second, ‘micro-outsourcing’ or ‘micro-work’ describes the practice of distributing small tasks that can be completed by workers anywhere who are literate and have access to an internet connection. Both have been enabled by convenient, inexpensive, and trusted electronic payment solutions.   Donors Choose (www.DonorsChoose.org) is an online crowdfunding platform for public education classroom projects in the United States. Teachers post information about resources they need to teach a particular lesson or to improve the overall quality of learning in their classes, and donors, who select any contribution amount, receive photos of the project taking place, a thank-you note from the teacher, and a report detailing how each dollar was spent. Donors who contribute over $100 also receive thank-you notes from students. To date, over 380,000 supporters have contributed over $71 million, helping 4.3 million students in over 42,000 schools (http://www.donorschoose.org/about/impact.html).