Originally, PayPal was a money-transfer service offered by a company called Confinity which was acquired by X.com in 1999. Later, X.com was renamed PayPal and purchased by eBay in 2002. The original PayPal employees had difficulty adjusting to eBay's more traditional corporate culture and within four years all but 12 of the first 50 employees had left. They remained connected as social and business acquaintances, and a number of them worked together to form new companies and venture firms in subsequent years. This group of PayPal alumni became so prolific that the term PayPal Mafia was coined. The term gained even wider exposure when a 2007 article in Fortune magazine used the phrase in its headline and featured a photo of former PayPal employees in gangster attire.
When did Confinity become eBay ?
Confinity was acquired by X.com in 1999 which was later renamed to PayPal. PayPal was acquired by eBay in 2002.