Analysis says Facebook and Square will threaten PayPal
|
This year will be pay fields, so far, this marks the field of startups and mature companies have won more investment. Therefore distinguish company will immobilized, which the company will rapid development is very important. In my opinion, Facebook and Square is the field of the two companies is worth to pay close attention to.
PayPal's weakness.
PayPal is strong, and the development of have enjoyed network effects brought about by the advantage. Maybe someone complain PayPal, but not Celtic. But PayPal also is not invincible, with some of its competitors have shortcomings enough to make roumania.
First, after 10 years of development, PayPal services have very mature. But PayPal sometimes will some risk factor imposed on users, it will lead to a PayPal service levels dropped and user erosion.
Secondly, PayPal depends heavily on the current hairpin organization and bank infrastructure, service content in the key still limited credit card and bank direct payment. Initially, a few small businesses will choose PayPal, but a long time gradually abandon, switch to direct to open business account, so can directly use credit card and bank payment, pay expenses also lower.
Moreover, PayPal's infrastructure and processing are centered in the United States. Although have globalise, in Europe and Asia, but also good performance in the three market advantages is not very obvious, especially in other markets.
Finally, large scale in innovation leads to PayPal stagnant, give rivals leading-edge. Therefore, PayPal's main rival has two kinds: one is taller, large scale with loyalty consumer brand of user groups, either market weakness start-up, its business focus may not be in the United States, is not to be hairpin organization and bank as the foundation.
Facebook's social advantage.
Facebookl belongs to the first competitor, it has extensive user group, also has the experience in pay. First, Facebook hopes to expand into the market, and also established pay subsidiary.
Secondly, Facebook has a huge user groups, with lots of user identity information. In paid field, it is a key elements.
Moreover, from the user perspective, Facebook entered pay field can obtain approval. It can enhance the social spectrum related credit, let a person produce trust.
Square: mobile wallet.
Square belongs to the second competitor, on the surface, Square is a consumer center for mobile payment system, but thorough, it not only can appearing found small accept credit card payments, can also give money deposited in Square bank account, even as a Square money on cheap financing source.
If each handset there are Square application, this is the first step to win the market, and then to reduce charging standards. From the economic perspective, if Square maintain the fee structure, will continue at $15 to 20 under $transactions remain advantage and PayPal is above trading in this advantage.
To attract large businessman, Square also need to reduce charging standard, but also want for small businesses and scattered clients build fast payment models, thus expanding the user group. For this part users, Square also need to provide a better user experience and credit card fast, in the short term function paying more than lower fees these important. |
|
Author Resource:-
My name is zihui Xia from autoscannerobd2.com, it offers Fault Code Reader, China Renault Can Clip Diagnostic, welcome to visite Launch X431 Scanner .
|
By :
Jessie Stone
Submitted
2011-04-17 18:47:17 |
Article From Article Mayhem
 Ezine ready view |
|
|
|
Related Articles
|
|
|
![[Valid RSS feed]](http://www.articlemayhem.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed![[Valid RSS feed]](http://www.articlemayhem.com/images/rss.jpg "XML Feed For RSS")