PayPal is a major payment processing website, used in conjuction with many other consumer goods sites as their processing merchant. The consumer goods sale rate has declined since mid-2008 with sales and demands dropping more then 35% for consumer electronics and the like being produced by big Japanese names such as: Sony, Samsung, LG, Toshiba etc. How far do you think PayPal's been hit by this?
Difficult to figure it out how much paypal would have been affected. May it might some rub off effect.
As far as the business itself goes, they're totally fine. They're still very profitable, have a growing user base, and are really just OK. However, since they are a public company, and attached to Ebay, they could be in bad trouble. Ebay's stock is tanked, so we'll see what happens. In any case, they would be the most desirable acquisition for processing in existence, so whatever happens, there's really no chance of their service being affected.
If they become a bit more `client friendly' they might become more popular. Not a single day passes without many accounts getting freezed up. The interest earned by them on the amounts they keep on hold for 180 days for such accounts is by itself a good money earner.
I am not sure in reality how many people use their paypal account to make big purchases in the first place.
Many people use paypal to make huge purchases. Google " Paypal Scam" and you'll see thousands of people who have thousands of dollars stuck in paypal and can't get it it out. Don't forget the high % they charge for receiving and sending money. First ebay takes their fee, then paypal charges their fee. No duh, they'll lose money, it's hard to make money when everyone is taking a piece of your pie. Eventually their user base will fade down.
It wont be that bad for them...the fact that the economy is doing bad might force people to sell more stuff on Ebay...thus creating more sells....possibly...just a theory
Though PayPal claims has a large user base many users they just create account once and they never even come back again. The high fraudulent transaction that PayPal receives and their charge back policy really can put their business at a disadvantage. Specially at this time when millions are loosing their job and seek for alternative ways of making money. In addition to that the emergence of digital currency and the flourishing of a number of payment processors from different countries is another setback.
eBay is eBay and that is pretty much an auction site and is not an option used by big retailers or manufacturers to market their products. As to who is honest and not, it depends on the individuals who deals on ebay. You cannot fault ebay if the seller or the buyer does not play ball. Paypal and eBay is just providing a service and if you are not happy with what you are paying and what it cost them to maintain such a framework then do not use them and just start your own.
I am not sure exactly who isn't affected by the recession. One thing is for sure - people do tend to spend less on items they buy. The wife may say she wanted a new dining set fot £700.00 but the fella gets one on the cheap for £200 so surely this drop in value will hit ebay / paypal.
There will be a day who will emerge as competitors for Internet Monopolies like Google, Paypal, Ebay etc..Until then WE HAVE TO WAIT!
I dont think paypal "DOWN although it is HIT by the recession,when something down that will be matter of nothing when "innovation and changes already prepared"I believe paypal is already face the reality worst then today and I have my faith paypal will still always stands out from the winds until all the Energy to turn on the internet is DOWm
In fact, I believe that with the economy downturn more people would turn to eBay to sell off their unwanted items in order to convert them to cash and there would probably be people looking out for a good bargain and in doing so may spur eBay's profitability.
i am thinking other way around. Because of more loss of jobs many people are turning online to earn $$$. i really dont know how much extra impact it has on pp.
I think techcrunch already discuss about this that "Ebay should turn there name there business into paypal since ,paypal has more "stronger in the business crisis rather then ebay does;paypal is equal to money it self,so I doubt they could be "out of demand for online community)
Well, very rare chance that they will reduce the fee. But they should be expected a bit more user friendly.