PayPal received a grand welcome at Nasdaq, where its shares jumped as much as 11% valuing the company at $52bn.
The company reportedly processed 4 billion payments worth $235bn in 2014, and deals in 26 currencies across more than 190 nations.
eBay acquired the payment processing service back in 2002 for $1.5bn, making it private.
However, due to mounting pressure from activist investor Carl Icahn, eBay decided to split PayPal in order to facilitate flexibility to both the companies.
Following the split, PayPal is expected to team up with other e-commerce companies and snatch market share from newly launched services like Apple Pay, Stripe and Square.
On the other hand, post split, eBay will be able to focus on its struggling e-commerce business, reported Reuters.
PayPal shares rose to $42.55 in early trading but eBay’s stock fell as much as 4.7%, dragging down the valuation of the company to $32 bn.
The news agency cited J.P. Morgan analysts as saying: "The competitive advantages PayPal enjoyed in the traditional online commerce channel do not necessarily carry over into the mobile and offline worlds, in our view."
