Gartner: PayPal threatens banking business - Resistance is futile, analyst claims...

Iria · Sep 15, 2005, 10:27 PM

Banks and vendors should sell PayPal payments to retail customers, instead of trying to compete with the online company, an analyst has claimed.

In a report entitled PayPal's New Micropayment Pricing Will Dominate Market, Gartner said the payment company will outstrip traditional payment methods and online transactions.

Author of the report Avivah Litan, a research director at Gartner, writes that retailers should embrace PayPal services rather than use "outdated" payment methods.

She wrote: "PayPal can beat credit card pricing because it blends credit card, bank account transfer and stored PayPal account value funding on the payer side, lowering PayPal's overall cost of funding any payment. PayPal encourages repeat payer customers to keep money in their PayPal accounts (the company's lowest-cost funding method), and to use credit cards (the most expensive funding option) as a last-option funding method."
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Read More / Source: Silicon.com

redsolar · Sep 16, 2005, 12:11 AM

Even if I personally did not have any not-so-positive experience, I call big time BS on this one....

While paypal may take a share of transaction business, it's far from being anywhere near the bank(s) at least in the USA, and most of the countries I lived in. PayPal is not a bank, and will not be able to gain trust from serious business(es), just from the customer service inadequacy standpoint (all security/protection [or lack of thereof] issues aside). And I am not talking about just the fact, that PayPal is in fact based on banking industry, and primarily on ACH transactions to begin with....

PayPal will remain an intermediary, and as such it should not survive in the world economy by reselling access to otherwise accessible services, unless something changes very significantly.

zerodamage · Sep 16, 2005, 12:17 AM

Quote:

Originally Posted by redsolar

Even if I personally did not have any not-so-positive experience, I call big time BS on this one....

While paypal may take a share of transaction business, it's far from being anywhere near the bank(s) at least in the USA, and most of the countries I lived in. PayPal is not a bank, and will not be able to gain trust from serious business(es), just from the customer service inadequacy standpoint (all security/protection [or lack of thereof] issues aside). And I am not talking about just the fact, that PayPal is in fact based on banking industry, and primarily on ACH transactions to begin with....

PayPal will remain an intermediary, and as such it should not survive in the world economy by reselling access to otherwise accessible services, unless something changes very significantly.

Not so sure if I agree. Paypal offers what banks can not right now and that is accessability to multiple funding sources at the same time. Right now Paypal is my main source of collecting money and I can do everything from paypal. I can send invoices, move money from one source to another, etc. Banks have been around for much longer than paypal of course but try doing everything paypal does with a bank and watch the fees kick your ass. It is an easy and cheap alternative for many.

redsolar · Sep 16, 2005, 01:14 AM

Quote:

Originally Posted by zerodamage

Not so sure if I agree. Paypal offers what banks can not right now and that is accessability to multiple funding sources at the same time. Right now Paypal is my main source of collecting money and I can do everything from paypal. I can send invoices, move money from one source to another, etc. Banks have been around for much longer than paypal of course but try doing everything paypal does with a bank and watch the fees kick your ass. It is an easy and cheap alternative for many.

I certainly hope you know what you are doing

. Don't get me wrong, I am not against a good intermediary which combines services into one convenient place, but PayPal is not the place I want to trust my money to

. Hence, I am no longer verified and never plan on becoming again. Granted, I rarely buy anything from eBay, so I do not necessarily need PayPal, your situation may be different.

pr0digal jenius · Sep 16, 2005, 01:22 AM

Debit cards are the way of the future, not paypal

**dj_stick** · Sep 16, 2005, 01:40 AM

Quote:

Originally Posted by pr0digal jenius

Debit cards are the way of the future, not paypal

truth to that

zerodamage · Sep 16, 2005, 02:16 AM

Quote:

Originally Posted by pr0digal jenius

Debit cards are the way of the future, not paypal

Did not say I did not have a debit card. Paypal is just a different service, that is all.

How about some reasons why they are so bad.. give me your experience. And no, do not point at paypalsucks.com, give me YOUR reason.

Logla · Sep 16, 2005, 10:31 AM

Paypal works for ebay but it should stick to what it knows. If I find something I want to buy on the internet and they dont accept my credit/debit card then I dont buy from them. Why should I pay 2%+ surcharge to paypal when they would likely just be charging the cost to my card anyway.

Plus a lot of banks now offer online debit cards. My bank does and works in the same way that you can load funds onto from your bank account and then use it exactly the same way as a visa card (mine is a visa webcard). If someone gets hold of the number, they will only be able to spend what has been preloaded onto the card rather than being able to empty your normal account.

Sep 15, 2005, 10:27 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	Gartner: PayPal threatens banking business - Resistance is futile, analyst claims... Banks and vendors should sell PayPal payments to retail customers, instead of trying to compete with the online company, an analyst has claimed. In a report entitled PayPal's New Micropayment Pricing Will Dominate Market, Gartner said the payment company will outstrip traditional payment methods and online transactions. Author of the report Avivah Litan, a research director at Gartner, writes that retailers should embrace PayPal services rather than use "outdated" payment methods. She wrote: "PayPal can beat credit card pricing because it blends credit card, bank account transfer and stored PayPal account value funding on the payer side, lowering PayPal's overall cost of funding any payment. PayPal encourages repeat payer customers to keep money in their PayPal accounts (the company's lowest-cost funding method), and to use credit cards (the most expensive funding option) as a last-option funding method." __________ Read More / Source: Silicon.com

Sep 16, 2005, 12:11 AM	#2
redsolar Off duty Join Date: Jul 2003 Location: Las Vegas, USA Posts: 1,242 Rep Power: 0 System Specs	Even if I personally did not have any not-so-positive experience, I call big time BS on this one.... While paypal may take a share of transaction business, it's far from being anywhere near the bank(s) at least in the USA, and most of the countries I lived in. PayPal is not a bank, and will not be able to gain trust from serious business(es), just from the customer service inadequacy standpoint (all security/protection [or lack of thereof] issues aside). And I am not talking about just the fact, that PayPal is in fact based on banking industry, and primarily on ACH transactions to begin with.... PayPal will remain an intermediary, and as such it should not survive in the world economy by reselling access to otherwise accessible services, unless something changes very significantly. __________________ Real_Men_Do_Not_Use_Space_Bar Main rig: Intel Core i7 930 @ 4.0 Ghz \| Corsair H50 Push/Pull \| 12GB OCZ DDR3 \| ASUS Radeon HD 5850 \| 3x 1TB Samsung F3 RAID5 on Dell PERC 5i SAS + 1TB Hitachi \| MSI X58 Pro-e \| 850W Antec Truepower Quattro \| RocketFish by Lian Li Full Tower Case \| Gateway XHD3000 30" LCD \| Dell 2408WFP 24" LCD \| Dell 2407WFP 24" LCD \| Logitech Z-5500 Speakers \| Windows 7 Ultimate x64 Laptop: Samsung x360-34P \| Core 2 Duo SU9400 1.4 GHz \| 4GB DDR3 \| 128GB Samsung SSD \| Intel 4500M w/ HDMI \| WiFi \| Bluetooth \| 13.3" WLED 1280x800 \| Windows 7 Professional x64

Sep 16, 2005, 01:22 AM	#5
pr0digal jenius Delete Me Join Date: Mar 2004 Posts: 14,648 Rep Power: 0	Debit cards are the way of the future, not paypal

Sep 16, 2005, 10:31 AM	#8
Logla HardwareHeaven Extreme Member Join Date: May 2003 Posts: 3,311 Rep Power: 0	Paypal works for ebay but it should stick to what it knows. If I find something I want to buy on the internet and they dont accept my credit/debit card then I dont buy from them. Why should I pay 2%+ surcharge to paypal when they would likely just be charging the cost to my card anyway. Plus a lot of banks now offer online debit cards. My bank does and works in the same way that you can load funds onto from your bank account and then use it exactly the same way as a visa card (mine is a visa webcard). If someone gets hold of the number, they will only be able to spend what has been preloaded onto the card rather than being able to empty your normal account.