Paypal - Why aren't there more competetors?

I love Paypal, but I don't like that they charge so much. Are there any real competetors? If so, which ones if any sound promising?

 

I believe PayPal has a bit of a unique status in the finance world. Can't remember the full story off the top of my head but I think they sort of slipped the net legally in the US and then quickly became too big to get rid of. That's supposedly one of the reasons others can't easily do the same, hence the lack of competition.

 

I can remember when PayPal was 1st starting out..

They caught and filled a good nich and promoted well.

When paypals stocks hit the market they sored...

 

Getting started - and finding people that have the reputation and money to back the company. And then when those people realize the significance of starting the company and the responsibilities, they usually have second thoughts.

It basically comes down to you letting people you do not know borrow money. Afterall, before it is your money, it is Paypal's and they are going to do everything to protect it

 

Competitor wise, noone will establish themselves as a better competitor to Paypal than what Google is working on (Google Wallet). Google have the obvious traffic, popularity, reputation and history to handle peoples online transactions well. The main question is if they'll go head on with Paypal and do a P2P/B2C, or if they'll focus on B2C a lot more.

Either way, competition is nearly always a good thing, and it's long overdue in the internet payment market. I hate the way Paypal operates, but I'm stuck with their service, can't wait for Google to swoop the market.

 

By Ebay!
So there are two built in markets that other payment processors can not even make a dent in.
First are the paypal users themselves.
Then there are the ebay sellers and buyers!
Do you think ebay will allow google or other payment processors to horn in?
Heck no!
Plus keep in mind, paypal does pay a market rate of some kind on your money in your account.
Think this month I got like $4.25.

 

There are a few competitors... The problem is, they are not interchangable like money. If you have money in one of these smaller companies and you want to send money to someone who uses another company you cannot. In the real world you can easily do it with checks..

 

I had high hopes that Google will step in, lot of people are not accepted to join PayPal and PayPal seems that don't need that customers.Imagine that, they can afford to loose customers.

 

Paypal became a monopoly simply be being user prefered. I would bet that 99% of the forum members signed up for paypal after realizing that they need paypal to make a particular transaction and had no other realistic ways to make that same transaction without paypal.

 

I have a Paypal account and find that many do also which makes it easier when sending money. I have used NoChex in the past which is for the UK only I think, but it was too small at the time and I never ran with it. I havent logged in to that account for a while.

 

Seriously, would you hand over your cash to a brand new site?

PayPal has way too much popularity now that nobody could possibly compete.

 

I too am hoping Google steps in and shows Paypal how to do it and do it right!

 

Paypal is very popular, and became very established, very early. The itegration added through eBay helped all the more. As far as an 'online payment' company goes, it's not like credit cards where people don't mind having a few different providers. Most people would prefer just one online payment company, and Paypal's the largest, and arguably, the 'safest' choice.

That said, if Google steps up, they are probably one of the few companies that have potential to be good competition.

 

These types of wallet type systems are very difficult from a legal point of few. Also to consider are the VISA and MasterCard regulations. PayPal has bank accounts in which the funds of their customers is deposited. In fact PayPay is a registered agent of a bank. This type of status is not easy to get. There are a few ways you can make such a system work.

Pre-paid credit cards, see epassporte for example. Their system is based around a pre-paid credit card. Every account has a virtual credit card, the user can transfer funds from account to account as well as use the virtual credit card. Epassporte also offers a VISA electron card.

Bank license. As you might imagine, it isn’t easy or cheap to get a bank license. In addition to the bank license, you would need to a acquiring license and I am sure some other license.

E-Money license. I am not sure about this option. I believe it is only available in the UK, and it allows a company to open virtual bank accounts. But, I am not sure about this option.

Coin based systems are not allows, or at least not in connection VISA and MasterCard.

Hope that helped a little. Keep in mind though, regulations change, laws change…

 

Oh btw. I have an epassporte account as well as their VISA electron card; it is a great service.

 

Anyone other than Google working on competeting with Paypal? Yahoo or Microsoft?

 

Im hoping google does something as well im tired of paypal having no competition. They charge so much plus their dispute system totally sucks, they have lost me so much money....

 

GBuy is in Beta Testing by secret retailers, so there is no long wait that you have to do.

 

The more I hear about Gbuy, the more I am looking forward to it. I've learned today that it might be tied to Google Ads so that when a web surfer follows an Adwords ad, they can pay instanltly with their GBuy account.

 

I like paypal..., but people do not trust so much them, and I do not know why