confinity

Confinity was an American software company founded in 1998 in San Francisco by Max Levchin, Peter Thiel, and Luke Nosek. The company initially focused on security software for handheld devices and developed a digital wallet that could transfer money between PalmPilot devices using infrared beaming. As online and mobile payments began to attract user interest, Confinity shifted toward a consumer payments platform.

In 1999–2000, Confinity expanded into a web- and mobile-based digital wallet designed to enable person-to-person payments over the Internet. The service allowed users to send money to others via email addresses, helping to popularize online payment transfers. The company subsequently attracted investors and grew its payments-focused team.

In March 2000, Confinity merged with Elon Musk’s online banking company, X.com. After the merger, the combined entity initially operated under the X.com name but soon adopted the PayPal brand for its payments service. PayPal became the dominant product of the merged company, while the X.com name faded from primary branding.

In 2002, eBay acquired PayPal for about $1.5 billion in stock, a deal that significantly expanded PayPal’s user base and established it as a leading online payments platform. The Confinity brand effectively ceased to exist as PayPal grew into a standalone payments company and later a major financial technology firm.

Confinity’s legacy lies in its early work on digital wallet technology and its role in the formation of PayPal, a company that reshaped online and mobile payments.