Paypal Case Study

9 September 2016

What is the value proposition that Paypal offers consumers? How about merchants? PayPal, the trusted leader in online payments, enables buyers and businesses to send and receive money online. PayPal has over 100 million member accounts in 190 countries and regions. It’s accepted by merchants everywhere, both on and off eBay. It provides a way for both sellers and purchasers to shortcut the time consuming process of processing payments; mailing cheques, money orders, waiting for cheques to clear.

Paypal allows merchants to avoid the difficulty and expenses of setting up the capability of using credit cards to process payments and other forms of payments. Paypal allows both merchants and consumers to use their email addresses to pay for items. Paypal also provides a lower interest payment for its use than that charged by credit cards. 2. What are some of the risks of using Paypal when compared to credit cards and debit cards? As Paypal stores all your credit card details under your email address there is some risk factors as the security of the Paypal account.

Paypal Case Study Essay Example

It is much easier to hack an email address than to hack a network securing your credit card details. In saying this there is minimal security surrounding your Paypal in terms of a single password could allow a person to access all your details for your credit card. In saying this credit cards have a much better data security system and money protection. Another risk with Paypal is that once funds are withdrawn, they cannot be recovered, whilst credit cards can.

There is also the threat of credit card fraud as there is not real checking process of the credit card on Paypal as it is used to just help the exchanging of funds, rather than a company securing funds, which is done by credit cards. Another issue that must be noted is the unreliable consumer data. That is Paypal does not require any identification of the seller so it can provide difficult in finding the user in terms of retrieving data. 3. Are P2P payments system developed by Apple or Google for the use on their mobile devices a threat to Paypal?

Can Paypal develop its own app for the iPhone? Yes both Apple and Google pose as a threat as they are both major players in todays markets. As both companies are looking to develop a P2P system outside of their own operations (itunes), this could result in a significant loss in the market for Paypal. Google has sought to move into the market with its Google Checkout, and is working to create a system for its mobile android platform. Apple is also looking to extend its platform out into a third party vendor, looking to sell digital goods on the internet.

Yes Paypal can seek to develop its own application for the iPhone, as to create a similar system to that of the banks in order to provide money exchange. Although it would require to be linked with tellers. In saying this it would be beneficial for Paypal to create cards to allow access to these funds through terminals in shops, whilst the application can allow them to monitor and control their funds. 4. What strategies would you recommend that Paypal pursue in order to maintain its growth over the next 5 years?

In order for Paypal to maintain their growth strategy over the next 5 years it would be recommended that Paypal: – Seek to provide a card to users so that they can access their funds outside of the internet; to use in store – Seek to establish their precence in the e-commerce, bay teaming up with major sellers i. e. Amazon – Look to diversify into other markets involving money transfers; create banking accounts where Paypal can lend out money to its customers at a charge – Increase their security for credit card access; not just a password to access details

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