How did x.Com become PayPal?

X.com initially began as an online banking platform that allowed easy transfers between accounts using just an email address. It also offered investment options like S&P 500 funds and high-yield money market funds. The company was founded by Elon Musk and was in direct competition with PayPal, which was focused solely on money transfers without banking services 1.

The merger between X.com and PayPal occurred in March 2000. At that time, both companies were working out of the same building, competing fiercely by offering incentives to attract eBay sellers and buyers. An executive, Bill Harris, saw the potential benefits of merging rather than competing, which eventually led to the merger 2. Elon Musk, initially the CEO of the merged entity, focused the company's efforts solely on the PayPal product due to its success, renaming X.com to PayPal in 2001. This focus was a critical move that led to PayPal's dominance in online payments 3.

This merger and the subsequent focus on the PayPal service allowed the company to grow rapidly, leading to a public offering in 2002 and an acquisition by eBay later that year. The success was monumental, considering the competitive landscape and the tech market conditions at the time 3.