This story delves into the following:
- PayPal is pursuing an ambitious plan to become a major factor in the payments industry.
- PayPal has worked out deals with Facebook, Visa, MasterCard and others to expand its presence.
- PayPal, which owns peer-to-peer payments app Venmo, has an advantage over the banking industry in that payments and related activities are most of what it does.
It seems ironic that a company that helped pioneer the online payments business might now be described as an old line payments company. Founded 18 years ago in Silicon Valley, and later acquired by eBay, PayPal Holdings was instrumental in the popular auction site’s growth into a multibillion dollar company with operations in 30 countries. But 1998 is ancient history in the world of e-commerce, and today PayPal is trying to recalibrate its strategy to account for the fast growth of mobile payments.[…]Now separated from eBay, PayPal is pursuing an ambitious plan to become a major factor in the payments industry. […]To accomplish that objective, PayPal faces the challenge of increasing its penetration of in-store transactions—where it does not have a major presence—while also establishing the same brand awareness with consumers that the major card networks already enjoy. “Why would I use [PayPal] as opposed to my credit card, or my card on my cell phone?” says Lee Kyriacou, a managing director at the consulting firm Novantas. “They’re working hard at making that case, but it’s a difficult slog for them.”
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