PayPal President Jeff Jordan aims to make it the global Web-payment option.Excerpts with edits and comments from the Businessweel interview:
- Paypal is going after large merchants. The merchants right now, from the largest to the smallest, are very concerned about the cost of payments. The cost of their credit-card accounts keeps going up, and the merchants aren't happy about this. Half of eBay’s mix [of buyer payment sources] is noncredit-card sources such as checking accounts [which don't charge transfer fees]. That has created an interest in PayPal as a potential way to help [merchants] manage their costs.
- On PayPal's expansion helping eBay's competition: - PayPal's mission is to be the global standard for online payments. eBay is the largest e-commerce franchise in the world, but it's still less than 10% of global e-commerce payments. So if you want to be the global standard, you provide payment services to everybody. Someday PayPal could be bigger than eBay. This can happens only if PayPal service not only eBay's needs but also the other 90% of e-commerce's needs.
- On PayPal's main challenges : - First is Execution – as it is growing like crazy. Second is the external environment - lots of regulators, lots of associations, and the importance of compliance for a financial institution. Then there's competition. In terms of payments, PayPal competes with everybody and it's a much more openly competitive environment.
Paypal wants to be the standard for online payments.For a five-year-old company with a 9% share of the U.S. consumer e-commerce payments and a 5% share of global consumer e-commerce payments, it’s a compliment. PayPal has helped eBay grow faster, and eBay has helped PayPal exist and grow faster. So spin it off options do not look appealing but eBay has a task cut ahead in making sure there are no downtimes and in providing 100% reliable service.
Category : Paypal