EBay Inc.’s Paypal released a new system today, Tuesday November 3rd, that allows software developers to directly integrate the payment method into their new programs. This new vision and system was released in order to expand Paypal’s “monopoly” over the internet. There are many methods like Paypal, but none that can be used directly with almost any online merchandiser. Paypal competitors have failed in the past due to the fact that there is a very “complex system of setting up banking relationships across dozens of markets.”
This new software, called “Paypal X,” will allow users to sign directly into Paypal, and make purchases. This works for not only material purchases, but online and virtual purchases as well such as “virtual weapons” in an online game like World of Warcraft. This makes Paypal much easier to use. It also allows it to be used for much different projects, such as fundraisers. Paypal was given market advantage due to its relationship with EBay, but now they are trying to expand outside of E-commerce.
Recently, websites such as Facebook have been allowing outside program developers to accept their online currency. Amazon, as well as google have expanded their electronic payment systems. Programmers using Facebook credits for small payments believe that its 300 million person user base will attract customers. Paypal still claims they will be the only true winner providing online payments.
I have been a loyal user of EBay for almost a year now. Not only does Paypal run smoothly, but they are a middleman that will take blaim for faulty transactions. It is easy to work with, and they provide great customer service. I have also seen Paypal used at the Loyola Office of Annual Giving’s Phonathon. When people hear that their transaction and donation is being done through Paypal, they feel a lot more comfortable.
Paypal is a trusted name. The new system they are implementing comes at a time when online gaming continues to grow and e-commerce flourishes. They are specifically catering to a younger age of internet consumers. Social networking has brought the world together. Not only is paypal catering to a younger generation of consumers, but a new global generation of consumers. The fact that Paypal is also allowing programmers to implement their systems for multiple types of programs benefits the economy as a whole.
I believe that they will crush their competitors. Their advantage is that they do not have single purpose accounts. Paypal can be used for anything. What kind of company can not only rival that, but implement a better system than this new Paypal X? It makes previous customers have more trust, and new users feel catered to at a personal level.
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ReplyDeleteSince Paypal already has such a good reputation in the world of e-commerce, I strongly believe that the new software "Paypal X" will only succeed. Paypal X is an interesting idea to help consumers make purchases for online and virtual goods. I think that the main reason this system will be used is because of the fact that Paypal is so trusted and known. Paypal's competitors will definitely need to research and innovate more if they want to continue staying in business. In the future, I believe that Paypal's success will drive other companies out of the industry. I think that this would make payments online much easier if it was the standard system used for every website. Ultimately, Paypal's IT advancements will only benefit the company and all of its customers.
ReplyDeleteI agree this will further monopolize the e payment system of Paypal. I have used eBay alot over the past couple years, and I definitely look to see if the seller accepts Paypal. It is a guarantee that your credit card is safe from fraud.
ReplyDeletePayPal X seems like it will be a convenient place to group all goods avaiable for sale via PayPale, and customers can browse the items knowing they can purchase them securely.
Paypal has picked a great time to expand their business because our generation and the ones to follow are doing more and more shopping online and a lot of virtual gaming. The fact that it is a trusted name goes the distance with many people, I know it does with me, and the monopoly that they find themselves expanding will get bigger because of that. I have family and friends that do enormous amounts of virtual gaming and I have always wondered how they go about paying every single month without worries and I had no idea that it was Paypal behind it. The thing I see happening in the future is competitors arising. The idea behind Paypal and now Paypal X is a gold mine, someone and/or some company will eventually come up with a cheaper and possibly better way to do what Paypal does, it’s just how the economy goes.
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