Could anyone compete with paypal??

I am thinking of setting up a peer to peer payment solution that would let you offer more than 17 different methods of accepting transactions including Authorize.net, PayPal, 2co, Egold and more, do you think if I set this up i would be able to compete with paypal etc or do you think they are too far ahead to be able to compete with.

 

Well, it probably depends on your budget and reputation in the online financial community.

I doubt you could take Paypal by the horns as they are pretty much established and I believe they are doing billions of dollars of transactions a year.

However, you may be able to cater to people who may not be able to sign up with Paypal or may not be satisfied with their service.

 

The service will be great, and it will boost within few months, but you cannot compete with paypal even if you have billions. It will take years to get the reputation.

 

ok thanks for the input i think i will be setting up the site and give it my best go trying to compete in a niche market which will be people that cant use and dont like using paypal and other merchants.

 

During your research, you might want to talk to your lawyers and accountants about the money collection laws and all the other legal nitty gritty which may be involved in collection and remitting funds online.

When it comes to money exchanges or anything related to money, there are laws to follow and probably licenses to obtain.

 

ok thanks for the heads up i will have to look into it before i do anything.

 

For Paypal to operate in the US, they had to obtain licenses from each state, these are listed at https://www.paypal.com/cgi-bin/webscr?cmd=p/ir/licenses-outside

Check out also UK Money Transmitter Association http://www.ukmta.org/

 

it will be nice, there are people who use money bookers, egold, paypal, 2co etc, so if you can take payment from one and pay the other by a different payment processor, your service will rock!
but then you will have to go through the leagal formalities first!

 

Google checkout might have a chance.

 

Wow.. too hard to compete, especially if your budget is under the millions, you would have to do A LOT or marketing. Don't forget paypal owns Ebay and they are highly reputable..

 

actually ebay owns paypal
you would really need hundreds of millions to open a competitor to paypal. A few million to compete with egold is not too bad.

 

Actually it is Ebay who owns Paypal They found to be a good synergy because paypal was original conceived as the core method for payment for online auctions. I am pretty sure it is still very much geared towards that.

Google Checkout from what I see is just a shopping cart and a one way payment method like 2checkout and the many already available payment processor out there. The only thing special about it is that it is tied into Adwords and they waive charges till the end of the year and it is only available to US merchants.

Paypal does a lot more and they are not just a payment processor, they actually like a virtual currency altogether where you can save it, use it to pay others and all that. It will be difficult to replicate what Paypal is.

 

I will only say 2 words "Good Luck".

 

You can't compete with PayPal if you're planning to offer accepting it.

 

your best start is probably to target users who don't have paypal first. or those who are just sick of paypal.

 

Target the countries where Paypal is not operating in. That might help.

 

there seems to be hundreds of users sick of paypal.
So i'm sure accumulating a customer base wouldn't be too hard.
Would require some hard marketing.

I don't know much in this arena..but i can give some advice.
This isn't definitive. Other members here probably could add to this
1 research you target market
2.create a feasability study (including financial and legal research especially)
3.write a business plan
4. Register as a company

Other things to consider are;
location of business premises
legal fees/licences etc
marketing plan-both offline and online. Get media attention. Ebay is big in australia with regular mention on the news. (If i saw a segment on a rival payment processor to paypal..i know i would prick my ears up)

my 2cents worth
hope it helped

 

headless, i think youre really headless in a good wway, but to compete PayPal you will need at least 4000 employees, 4 billion USd circulation a year and a minimum of 15 million users. Good luck

 

Thanks for the feedback, I appreciate all of your comments but i think i am going to try and find a niche market of people that dont like paypal or cant use it. I will do some market research first to see if anyone would use the site, if you would like to vote please click here

 

i've already voted yes over there