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PayPal mobile payment era still dominate it

via:博客园     time:2016/6/14 11:30:27     readed:1653

移动支付时代移动支付时代 PayPal 还能称霸吗

June 13, "Fortune" website recently published an article entitled "How PayPal Plans to Get Back on Top in Digital Payments" review article, the author is By Leena Rao. The author believes that although PayPal payments in mobile era was outdated, but the company from eBay huge change has occurred independent of the future of the company'd like to become a leader in the field of digital payment.

The following are the main contents of the article:

The spring of 2009, e-commerce giant eBay in deep trouble, online shopping revenues fell dramatically. Due to the economic downturn, consumers cut spending at the same time, competitors such as Amazon, eBay took away a large part of the market, eBay's stock price fell from a peak in 2007 of more than 80%.

John was CEO of eBay & middot; Donahoe (John Donahoe) faces a series of difficult issues, but he and the board have an intention to reverse the situation of the plan. eBay has great potential has two subsidiary & mdash; & mdash; Internet phone service provider Skype and the online payment industry pioneer PayPal. However, both the company and eBay's core business does not fit. If the two companies split out, eBay can not only get a lot of cash, but also can focus on auction and retail business. Back in 2009, eBay board of directors voted to split the two subsidiaries. & Ldquo; It is almost a foregone conclusion. & Rdquo; Donahoe expressed.

Note that the key word here is & ldquo; & rdquo ;. almost

April 14, 2009, eBay announced plans to split Skype. But Donahoe PayPal for other ideas. At the time, Apple has just revealed that its App Store has been downloaded a total of more than 1 billion. Further, since the rise of the iPhone, many technology executives are thinking about the potential of smart phones has become a business tool. At that time, PayPal is the world's leading digital payment service provider, already has 70 million users, and its payment business grew 20% per year.

Donahoe more convinced that split PayPal is foolish. & Ldquo; mobile devices is on the rise. & Rdquo; he recalls, moreover, & ldquo; There are significant synergies between eBay and PayPal. & Rdquo; after communicating with other members of the board of directors, Donahoe find their ideas similar to themselves. They put ideas into action: in July 2009, at a resort hotel in Menlo Park, Calif., EBay PayPal Board revoked the split decision. eBay's PayPal chose the long-term potential.

However, this potential has not been realized PayPal. In hindsight, eBay's decision to make PayPal6 lost six years of freedom, but also changed the history of digital payment industry. Industry insiders and analysts believe that, eBay never take advantage of PayPal's & ldquo; pioneer & rdquo; position. In contrast, eBay makes PayPal lose valuable time, during which time its rivals emerged out. This delay allows PayPal lose the opportunity to dominate today's digital payment industry, like Facebook dominate the social media industry, like Google dominate the search industry. Early employees of PayPal, venture capitalists Keith Rabois said, ten years on eBay is PayPal & ldquo; lost decade & rdquo ;.

The irony is that, eBay PayPal will eventually split up. PayPal in July 2015 as an independent company, with 184 million active users, serving 14 million business. PayPal's revenue in 2015 reached $ 9.2 billion.

However, most of the revenue from the PayPal electronic payment rather than ordinary mobile payment. In a moving times, it feels a little weird. E-commerce analyst at Forrester Research (Forrester Research) of Sucharita Mulpuru said, PayPal has lagged behind in other areas. At the same time, Square seize the mobile payment market. Some credit card giant has also joined the digital payments market. In the US, Apple's Apple Pay and Google's Android Pay mobile payment carve up the cake, but only in Europe PayPal limited test. & Ldquo; PayPal in innovation behind Amazon or Google. & Rdquo; Mulpuru said.

All this waiting PayPal CEO are split after Dan & middot; Shulman (Dan Schulman) is changed. & Ldquo; I hope that consumers do not just twice a month to use PayPal, but twice a week, then twice a day. & Rdquo; Shulman said. He is trying to make that hope a reality: in less than two years, PayPal era left only strive to improve eBay mobile application transfers Venmo, and acquired a number of valuable new technologies.

Now, the biggest problem with PayPal is whether it can make up for lost opportunities, payment times in an increasingly competitive field of digital. Forrester Research analyst Brendan & middot; Miller, (Brendan Miller) indicates, & ldquo; now, the biggest challenge faced by PayPal is to get rid of the past. & Rdquo;

Founders and early employees of PayPal including electric car company Tesla founder Elon & middot; early investors Musk (Elon Musk), Facebook Peter & middot; Theil (Peter Thiel) and LinkedIn co-founder Reid & middot ; Hoffman (Reid Hoffman). PayPal is the world's first reliable digital payment systems in the Internet bubble era survived, it has accumulated 16 million users, and listed in 2002. Listed just a few months after it was acquired by eBay at a price of $ 1.5 billion.

PayPal's corporate culture favored those weird mathematicians and computer genius, they tend to make decisions quickly, and then all night writing code. But eBay relatively bureaucratic corporate culture, new ideas take a long time to get approved. Most are called & ldquo; PayPal mafia (PayPal Mafia) & rdquo; innovative leaders have left eBay.

eBay does not feel the need to reshape PayPal, which is understandable. Rely on PayPal, eBay auctions every time you can get two charges: an auction commission, it is a PayPal transaction fee. In 2002, eBay auctions on 40% of the payment is through PayPal, by 2005, this proportion rose to 90%, and at a steady pace. But he missed the new PayPal payment & mdash; & mdash; mobile payment & mdash; & mdash; the first opportunity, and this opportunity is Stripe, Square and Braintree and other companies caught.

By 2009, eBay executives realize, PayPal in the mobile space behind. After stopping the break-up plan, they hope to catch up in the mobile space. PayPal obtain a critical & ldquo in 2011; talent acquisition (acqui-hire) & rdquo ;. When eBay acquisition of mobile payment company Zong, Zong founder David & middot; Marcus (David Marcus) became president of PayPal. Marcus quickly launched a program called PayPal Here mobile payment application that can be connected to provide a mobile phone and iPad credit card reader for small businesses. Marcus also transformed the PayPal website, but his greatest achievement was the acquisition of Chicago-Braintree in 2013. Braintree focused on start-up companies to provide online and mobile payment services. Even better, Braintree owns mobile transfer applications Venmo.

Before the acquisition of Braintree, PayPal almost no contribution in the mobile space, after the acquisition but has the fastest growing company in the field. & Ldquo; This is a major turning point. & Rdquo; James Cakmak analyst at market research firm Monness Crespi Hardt said. The impact of the acquisition quickly manifested. In 2014, the total payment processing service Braintree reached $ 23 billion. The following year, that number more than doubled, reaching $ 50 billion.

These results bring another trend: the development of PayPal is significantly faster than eBay. 2013, PayPal's revenue increased 19 percent to $ 6.6 billion, while sales rose eBay only 12% to $ 8.3 billion. Investors annoyed. January 2014, a senior shareholder activist Shi Kaer & middot; Icahn (Carl Icahn) appealed to split PayPal, and sparked controversy. Support split PayPal's shareholders that, after the spin-off PayPal, PayPal can operate better, but eBay can also get more money to develop their own core business. June 2014, eBay board of directors voted to split PayPal.

After the split, Shulman become PayPal's CEO. In sunny PayPal Washington office, Shulman described his vision for the company. He has just completed a US Secretary of State John & middot; Kerry (John Kerry) and World Bank President Jim Yong (Jim Yong Kim) meeting. During the meeting, they will be lobbying Schulman advanced digital payment technology to the developing countries. Shulman explained, PayPal should become every mobile payment service providers, both transfers between friends or buy a sandwich at Subway. & Ldquo; This is a complex chess game. & Rdquo; he said.

In this chess game, PayPal although not a pawn, but not the queen, accurate positioning PayPa current status is difficult because many of its competitors & mdash; & mdash; including Apple and Google & mdash; & mdash; in the field of mobile payments are still in the ascendant. PayPal has 184 million users, which is currently unmatched, but mobile payment is PayPal's biggest weakness. According to market research firm Transparency Market Research report, total global mobile payments is expected to reach $ 1.2 trillion in 2018.

To be assigned a large cake in the huge potential of mobile payments market, PayPal needs to stand out in a number of strong competitors. Apple launched in 2014 Apple Pay, now more than 2 million businesses to provide payment services, and become payable within other companies applied. According to research firm Crone Consulting Mobile Payment data, there are 12 million users a month use Apple Pay. Apple said, Apple Pay grow by millions of users each month. Google Android Pay users are also growing rapidly. ITG Investment Research analyst Steve & middot; Weinstein noted that, with respect to PayPal, Apple and Google have a big advantage: they are in control of an operating system (iOS or Android), enabling them to seamlessly integrate the payment service to the phone.

After the acquisition of Braintree, PayPal has strong competitiveness in the provision of mobile payment services for business and enterprise. However, the company's in-store mobile payment services is lagging. 2015, Square store payment service has brought $ 1.2 billion revenue for the company. In contrast, PayPal in-store mobile payment services in the field of technology is very backward. Investment firm Andreessen Horowitz venture capitalist, Visa former executive Alex Rampell represented, PayPal is now too late to catch up.

PayPal's powerful competitors, including not only the Silicon Valley high-tech companies, including credit card giant Visa (Visa), MasterCard (MasterCard), American Express (American Express) and other financial institutions. The credit card giant has a working relationship with PayPal though, they also launched its own payment service (Visa Checkout, MasterPass and AmEx Express Checkout), so it became a PayPal competitor. Wherein, Visa Checkout already has hundreds of thousands of users.

The first task is to separate Schulman PayPal and eBay's technology to build. PayPal's CTO Sivananda (Shivananda) transformation of the PayPal payment technology on the basis of Construction. Next, PayPal needs to expand its mobile payment services.

March 2015, PayPal's price to $ 2.8 billion acquisition of mobile payment startup Paydiant, the expansion of mobile payment services for merchants. Paydiant technique is called & ldquo; white label & rdquo ;, retailers and banks can use this technique to add payment services for their applications, customer loyalty programs and electronic coupons. For example, through this technology, fast-food chain Subway Subway customers can use the official application to order sandwiches and online payments.

PayPal, a subsidiary of Paydiant and Braintree operate independently and have their own workspace and leadership. Shulman believes that this will help them faster innovation. For example, the chief executive Bill Ready Braintree was acquired before and still in charge of the company. Under his leadership, Braintree last year launched the One Touch Service. PayPal users after the first landing One Touch, you can achieve safe and convenient payment at the opening of all One Touch business page, without having to log in repeatedly. To April this year, One Touch has more than 22 million users, PayPal has become the fastest-growing business.

Almost achieve the same rapid growth of mobile transfer application Venmo. The total transfer business Venmo handled in 2015 reached $ 7.5 billion. In January 2016, only a month's transfer business to reach $ 1 billion. Although Venmo did not bring much revenue as PayPal, which is consistent with other similar applications (such as Square Cash and Google Wallet) the same. But Venmo future might change this situation. PayPal executives said, Venmo customers are very loyal (they are usually Wednesdays or four times to use the service). Shulman believes that businesses eager to get these loyal customers, they will be happy to pay for the use of Venmo as a payment system. This in turn helps to Venmo become popular in-store payment application.

In order to cater to those who are tired of the consumer bank card, PayPal has also begun to embrace the block chain technology (blockchain) and encryption technologies currency (cryptocurrency). PayPal upgraded application Braintree, Braintree upgraded accept Bitcoin payments. In January, founder of PayPal appointed bitcoin wallet Xapo Casares (Wences Casares) Board of Directors.

International remittance business is a big market. In July last year, PayPal price of $ 890 million acquisition of the international money transfer service startups Xoom. Xoom users do not have to go to the bank for international remittance, on a mobile device can operate. On Xoom application, users can transfer to a payee in 53 countries. Use Xoom need a bank account or credit card account, but it is more secure than the office transfer to the bank and cheaper. At least, Xoom users do not have to wait in line at the bank.

Equally important, Xoom make PayPal mobile payments is unique. If PayPal realize the vision Shulman, the breadth of its business may be able to make up for its lack of innovation this defect in the lost decade. & Ldquo; We want to reshape the world of digital payment systems. & Rdquo; Shulman said. & Ldquo; previously, our payment system only allows users to click a button on the site, but we are eager to go beyond. & Rdquo;

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