Paypal likely to get hit by competition

Karthik Subramanian

Paypal, one of the largest payment processing companies in the US, is likely to face headwinds in the future due to increasing competition from old and new competitors in the payments arena.

paypal

The payments industry has witnessed a sharp increase over the last couple of years as more people have shifted to digital payments all over the world and the usage of cash has also come down drastically due to the pandemic when the users have been forced to stay indoors and have been forced to rely on e-commerce websites even for their basic needs. This has not only led to a huge surge in the payments volumes but also led to the huge influx of funds into the sector from various investors. This in turn has led to the creation of a variety of startups that have been able to take on the established players in this space with new and innovative products like BNPL and others.

We have also seen the established players pull up their socks and push ahead with their payments products while certain other companies like Amazon and Apple have also launched their payment products to seize the opportunity.  Paypal has also been trying to compete in this space with its products like BNPL and partnerships like those with Amazon but it is clear that it no longer is the dominant player in the industry. It relies a lot on e-commerce websites using its payments services but it is now facing a lot of competition in this industry from Shopify which has captured the small businesses reducing Paypal’s share here to a minor one.

All these are expected to hit the bottom line of Paypal in the coming months though its Venmo business with Amazon and its partnership with Amazon is expected to bolster its volumes. But with Amazon also having its payment platform, it remains to be seen how many of the buyers would continue to prefer to use Paypal for their payment purposes than using the native payment method within Amazon. We had also seen recently that the other large payment company, Paysafe, also reported not so good numbers over the last few months mainly because it has not upgraded its services and platform over the period as the industry continued to push ahead aggressively.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<