Financial crisis: how online payment processors will hold?

Discussion in 'Payment Processing' started by Bucaneiro, Sep 30, 2008.

  1. #1
    I think a discussion on this would be interesting. What you guys think about PayPal, Moneybookers and others on this financial crisis scenario? Not now, but the future. Should we withdraw our money as soon as possible and hide it under our mattresses? :rolleyes:
     
    Bucaneiro, Sep 30, 2008 IP
  2. KonichiJ

    KonichiJ Peon

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    #2
    LOL, are you kidding me? Paypal isn't even related to any of the lending industry giants which are now in trouble. If anything, your money is more safe with the company's you mentioned.
     
    KonichiJ, Sep 30, 2008 IP
  3. eddy2099

    eddy2099 Peon

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    #3
    I don't think it would really make much difference. Paypal itself does not make money by lending money and thus would not be affected by the same reasons why the other financial institutions are facing now. The whole trouble is the over-extension of credits and when s**t hits the fan, people/businesses suddenly cannot repay the banks and thus the problem. Paypal is pretty much a 'cash' business.

    Of course, now the only issue is if the banks which Paypal uses closed down then that may cause some issue.

    Personally, I would think that there is really nothing really to think about but we would probably be facing slower and lower sales now that customers' spending power is greatly reduced now. Probably the spate of crime and home break-ins may be more commonplace now that there are more desperate people around.
     
    eddy2099, Sep 30, 2008 IP
  4. Bucaneiro

    Bucaneiro Peon

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    #4
    This crisis affect the whole economy, not only the big guys at Wall Street. If nothing is planned and executed by the government soon, we'll be dealing with bigger problems in the future.
     
    Bucaneiro, Sep 30, 2008 IP
  5. cool_78

    cool_78 Guest

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    #5
    I don't think paypal will be affected too much with what's going on in wallstreet, but to be on the safe side don't keep huge amounts in your accounts.
     
    cool_78, Oct 1, 2008 IP
  6. sachin410

    sachin410 Illustrious Member

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    #6
    If Paypal's banker goes bankrupt, it will get affected...that's what "domino effect" is all about.

    The extent of the damage will depend on how much Paypal can recover from its bank.

    ===================================================

    Just because a bank doesn't have bad loans in its books, doesn't mean that it can survive a banking sector collapse.

    When one bank collapses, many other banks are affected. Banks always have a lot of inter-bank debt on their books.

    If the things in the US get worse, I would prefer to keep a minimum amount in my Paypal account.
     
    sachin410, Oct 1, 2008 IP
  7. loverdp

    loverdp Well-Known Member

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    #7
    I do not keep money in paypal account as soon as I got the money I transfer the moeny to my bank account.I used withdraw my funds every 5 days.
     
    loverdp, Oct 1, 2008 IP