EBay to Spin Off PayPal

Post by icebraining » Tue, Sep 30, 2014, 1:29 PM UTC

foldor wrote: post #18

michaelt wrote: post #12

Earlier quoted context omitted.

Isn't Paypal just another middleman between the retailer and the banks? I mean, Paypal is all very well for a small site where customers don't trust you with their card details or you're not doing enough volume to get a decent merchant account - but neither of those applies to Amazon. Paypal will want a bigger cut than Amazon's existing credit card processors. So why would Amazon want to use Paypal?

PayPal allows people who don't have a credit card to make purchases online. Many people in European countries don't have a credit card for example. Accepting PayPal is an easy alternative to supporting all of the different payment methods that you might need to meet certain regions expectations.

Post by pratyushag » Tue, Sep 30, 2014, 1:31 PM UTC

Shivetya wrote: post #5

pratyushag wrote: post #3

Great decision, allowing PayPal to grow beyond the virtual ceiling placed by being governed by a marketplace company which rightly has its own agenda before PayPal's.

As long as the split does not disrupt the current relationship for buyers and sellers using Ebay. Right now the process is quite simple and there had been recent efforts to link the two sites even more, as in not needing to ever log into Paypal to complete ebay purchases. hopefully that integration won't suffer.

Post by lbarrow » Tue, Sep 30, 2014, 1:41 PM UTC

hemancuso wrote: post #25

This articles suggests only 20% of PayPal will be sold, although I doubt that number is anywhere near final. It's just like EMC spinning off VMware. EMC held on to 80% of VMware [and still does?]. It lets them capitalize much more effectively on the faster growing subsidiary. Even today VMware trades at double the PE ratio that EMC does.

Post by abritishguy » Tue, Sep 30, 2014, 1:46 PM UTC

ghshephard wrote: post #30

michaelt wrote: post #12

Earlier quoted context omitted.

Isn't Paypal just another middleman between the retailer and the banks? I mean, Paypal is all very well for a small site where customers don't trust you with their card details or you're not doing enough volume to get a decent merchant account - but neither of those applies to Amazon. Paypal will want a bigger cut than Amazon's existing credit card processors. So why would Amazon want to use Paypal?

Anybody who doesn't have a credit card can't buy from Amazon (easily) right now, even if you have a paypal account. Given that EBay and Amazon are direct competitors in the retail space, it made good sense not to share purchasing/sales information with Paypal. Once Paypal and EBay are separate entities, Amazon now can reasonably enter into a merchant agreement with Paypal. I don't buy into the Amazon/Paypal being com…

Post by Igglyboo » Tue, Sep 30, 2014, 1:58 PM UTC

1337biz wrote: post #26

dosh wrote: post #22

Once this goes live, PayPal will sooner or later face stiff competition beyond its current stage under the umbrella of eBay, competing against Chinese players like those of alipay and tenpay which already have users in the hundreds of millions. These players are agressively looking into the markets outside of mainland China. The landscape won't change in a few years, but in a decade, may look completely different.

These would still have a massive trust issue in most parts of the "Western World". Certainly doable under the umbrella of buying an established western (banking) brand but Asian brands will have a hard time communicating trust, reliability and security.