Paypal split from eBay

The split from ebay is official this Friday. Paypal has 5mm in cash, they have a wide net of companies under them (Xoom for example), solid revenue growth and a huge % of market share.

How do you think they will do independently?

(ps yes I was just watching Cramer)

5 Comments
 

I honestly don't know. PayPal had so much business pushed through it because of Ebay. I stopped using PayPal years ago because of their BS partices. Solo they will have to compete with google wallet, snap cash, Facebook cash, etc. I'm sure they will have a market share, but I wouldn't say I'm a supporter.

 
Best Response

Over time they will have to compete with google wallet/apple pay IF physical in-store mobile payments takes off. Right now in store mobile payments (physical world) is such a small percentage of total purchase volume its negligible. Big battle will be mobile in app and in browser purchasing. Plus PayPal has a 10+ yr headstart on these other digital wallets. They were THE original digital wallet and have a pretty loyal customer base. Good mobile assets (venmo, braintree) to boot.

Also i dont give the EBAY argument a ton of cred. They signed an amended 5 yr agreement + Ebay volume growth is sht. If you look at on ebay volumes, they were growing much slower than off - ebay. Rather, the separation from ebay should allow them to approach competing online marketplace sites EG Amazon, overstock et al where they were previously viewed as competition.

Here's the thing. If you can't spot the sucker in the first half hour at the table, you are the sucker.
 

They'll do fine. I saw myself doing several online transactions with paypal during the past months, even though I'm no online shopper at all. None of those had to do with ebay. Carl knows what he's talking about ^^

 

I like eBay. Unfortunately, I dont think they will be able to be as profitable in the next few years or in the future (maybe ever again), because they have lost such a tremendous partner. They have literally no in-store POS capabilities; Square has it.

I see people using the Facebook new money transfer tool as the new Paypal for small transactions, because it is easy, quick, and effortless to get the money in your account, whereas with PayPal, IIRC, you need manually send the money to the bank for cashing out and pay a fee for it on top.

 

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