Paypal fights back against Google and Apple

To stave off threats from Google and Apple, Ebay, Inc, will layout a plan expanding Paypal, the online payment site, preparing for when it is the largest revenue producer in the company. They will unveil BillMeLater service with an open platform that allows programmers to work with the software.

The Paypal service is on track to produce more revenue than EBay’s marketplace e-commerce. The key to its growth is to stay ahead of the three large credit card companies and other technology companies that are investing in the same type system.

Experts say Paypal is in the best position to gain market share over the next five years.

Scott Thompson, formally of Visa, Inc. leads the charge for Paypal.

Smartphone payments are starting to increase for making payments instead of using cash, credit cards or other payment methods. Apple and Google have worked on plans that will make smartphone payments a reality where people will pay by just walking through the checkout line and waving their phones.

Apple ,Google and even Verizon may have an advantage since to use Paypal on mobile devices you need to download its application while the others can interface into the phone. They may be at a disadvantage because they do not control the mobile platform says one analyst.

PayPal claims an advantage saying their focus is much narrower and it is all we do being the leader in payments. There are others but none have the capabilities of Paypal, says Anuj Nayar their spokesman.

Facebook had been good for Paypal but is also a threat because of all the payments that its users make through Paypal, over 30% of the payments at Paypal. Facebook receives 30% and is working on their own option called Facebook Credits.

Although helping Ebay’s revived growth, Paypal has lower profit margins than Ebay.

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