Order from us for quality, customized work in due time of your choice.
What explains PayPal’s early success?
PayPal has been able to realize high profits and returns due to the excellent services that it has provided over the years. The over 28 million accounts active by 2006, and 100 million registered users have enabled the company to realize high returns in the market. Its early success can be attributed to mainly the better services offered.
The secure platform that ensures no other party can access personal information increases the security of its accounts in use. The free registration with self-guided steps that ensures high-security levels for accounts is a major impetus for the company’s success. PayPal ascertains verification of the email system used in payment to prevent fraudsters. The company treats security lapses with caution resulting in account limitation. This strictness has paid off in deterring hackers.
Additionally, the company has capitalized on the provision of a system that allows clients to make quick and convenient services such as payments and deposits. Increased transactions resulted from this initiative, with the majority of efforts going toward eBay transactions. By capitalizing on eBay users based in the US, the company grew to a multinational level with more markets arising as a result of this strategic plan.
In the wake of increased e-commerce and the explosion of online transactions, the company has found its business relevant to serve this extensive and perfect market. With most of the contemporary business deals happening via a digital platform, the availability of a wireless transfer of payments has become inevitably necessary. The high-security assurance provided by PayPal and its management proved productive to the company.
Fees and charges collected, especially from developing countries, have enabled the company to accumulate for growth. Also, this move has forced PayPal to capitalize on the developing economies that have offered an opportunity to attain unmatched development.
How vulnerable are Visa and MasterCard to PayPal’s strategies? What actions should they take in response to PayPal’s off-eBay initiative?
Considering the impact that PayPal has had in the economy over the years, it continues to pose a great threat to credit and debit cards, with Visa and MasterCard being the most vulnerable in the whole triangle. Its online presence, especially with new Business Accounts, has only increased its market from the usual eBay customers to a much wider platform. Person-to-person transactions are much common, considering the fact that more people are opting to sell goods and offer services online. Secure platforms and the rewards on purchases made through their network continue to pose a major threat to many investors in the credit card sector. Having capitalized on the first-mover advantage, PayPal has been able to take over the market. This situation, particularly, has added operational costs for banks in the provision of rewards and higher security.
To meet the high threat levels that PayPal offers, credit card providers need to invest more in the rewards given to ensure that they attract a wider market. Nonetheless, incentives for many large multinationals and sellers should be encouraged to enable more people to capitalize on the use of Visa and MasterCard. Free provision of the cards or an alternative low-cost provision will majorly attract more users since PayPal gives free registration.
Moreover, the middle-size and small businesses (SMEs) continue to offer a large potential to the sector. Therefore, higher capitalization in this market will prove to be beneficial for credit card providers. Apart from these initiatives, selling their brands as secure and cheaper alternatives will revolutionize their returns and profits. Meeting the standards set by PayPal as a reliable brand is a challenge that can only be met through strategic profiling. These standards eradicate room for lapses in trade among credit card users.
Does Google symbolize a severe danger to PayPal? What strategies do you recommend for Google? What strategies do you recommend for PayPal in response to Google?
Google has continued to act as the motherboard to all PayPal activities, from marketing to the provision of a platform to operate. However, the first-mover advantages that PayPal enjoys offer a great reward to the company over other providers. Therefore, the company poses a limited threat to PayPal in its long-term profitability and presence. PayPal customers continue to boast of high-security levels, especially the protection of credit card information from third parties. This benefit has pulled additional clients to sign up for the PayPal secure services globally.
Brand awareness is the best consolation and opportunity that Google has to give its payment platform. Online transactions begin with a search on the various goods that are available and the payment systems applicable. Email capabilities from Google are also widely used by most registered PayPal users. The introduction of Google Base has been successfully attracted. It has fostered the best platform that enables customers to do e-commerce on the same screen.
PayPal needs to increase the number of merchants that it currently has in the market. More customers on this platform will mean that the company will get higher returns through earned fees and charges. Second, more online retailers for eBay will be encouraged in a bid to increase its presence in the global market. Collaborating with possible rivals may also prove beneficial in the long-run. Last but not least, the off-eBay platform has been underutilized. The expansion of the business will create a better avenue to sell more goods and realize higher profits.
What strategy should PayPal pursue Merchant Services? How should PayPal allocate investments for merchant vs. consumer services? For merchants, should it target large or small merchants, and why? For consumers, should it target new or existing customers, and why?
Online platform businesses need to capitalize on advertising and proactive marketing strategies. Increased advertising can handsomely pay off from the ever-burgeoning online presence. The Business Accounts have been doing great, realizing approximately 90% of PayPal’s transactions. The company has enjoyed brand equity and loyalty, among other advantages. As a renowned person-to-person transaction platform, the company can invest more in building a better avenue to assist online traders.
Retailers taking the online platform do so to benefit from diversity and higher returns. A secure payment system will ensure that customers benefit from the trust and fast transactions. A partnership with Google and its competitors will undoubtedly be effective for the company. A deal with Google can be a game-changer for PayPal due to Google’s brand image and an already extensive customer base. Investments in the eBay have benefited PayPal as they opened up doors for expansion in the off-eBay section.
Targeting the merchant side of the business, PayPal ought to deal with the growing number of people using its services. Small size merchants are increasing at a rate that provides a great opportunity for the realization of higher returns. New users can be attracted through better marketing strategies and sustaining the security of its services. Rewards offered by the company should be more enticing to foster a higher market share. Neglecting the already existing loyal customers cannot be an option. In fact, strong customer loyalty will continue to be PayPal’s leverage as new competitors try to evaluate market entry options.
Order from us for quality, customized work in due time of your choice.