Will PayPal be disrupted by the new generation of payment technology companies?

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The short answer?  Probably not.

PayPal is designed for consumers who don’t want to post their credit card information online.  They trust PayPal’s reputation as a reliable and secure payment method, due in large part to its former affiliation with eBay. It is also widely accepted among e-commerce sites, making it a comfortable option for online shoppers.

Payment technology companies, on the other hand, provide solutions for merchants and retailers to manage credit card transactions. For example, Stripe provides a seamless process for merchants to begin accepting credit card payments. As such, Stripe’s real competitors would be banks, not services like PayPal.

If PayPal is going to be disrupted, it will be due to rival mobile payments services like Alibaba’s Alipay. Alipay has gained significant traction over the past two years and is currently the number one mobile payments service globally, with over 100 million registered users. In 2013, the total volume of transactions made via the Alipay e-wallet reached $150 billion, exceeding those processed by PayPal and the competitive Square service combined. Should Alipay decide to expand its global reach into the U.S., PayPal may very well find itself facing stiff competition.

Do you have any payments-related questions you would like answered? Just ask us on Twitter @ZooZpayments!

Image courtesy of PayPal.

Make way for the movers and shakers of 2015


Where are the biggest opportunities in retail, payments, and fintech?

This year has seen major advances in financial technology (“fintech”), retail globalization, and payments technology, to name a few. It is a great time to take a look at some of the important developments in 2014 and try to analyze how they might impact the world of payments and retail in 2015 and beyond.

Read more about what to expect in 2015 exclusively on Bobsguide.com.

Photo credit: Kaboompics.com.

Three steps to stop payment fraud

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Hackers and fraudsters are forever thinking up new ways to obtain credit card and payment information for personal profit, and merchants all too often make their jobs easy for them. For example, just a few weeks ago, two analysts discovered security flaws on Alibaba.com that may have exposed the personal data of millions of people.  So why, after 30 years of B2C ecommerce activity, is payment fraud still so prevalent? And more importantly, what can be done to stop it?

Read more exclusively on MultiChannel Merchant.