PayPal foresees end of the wallet by 2015

Mobile payment services will catch on and more people will prefer using these methods of digital payment

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PayPal foresees end of the wallet by 2015 PayPal says that digital mobile payments will increase and eventually people won't need wallets by 2015
By  Clayton Vallabhan Published  July 11, 2011

PayPal believes that by the year 2015 no one will carry a wallet anymore. Instead mobile payment methods will increase and become the preferred method of paying for purchases.

The company has also recently acquired Zong, a popular e-commerce website, for $240 million. This equips PayPal with an additional customer base of 30 million Zong users. PayPal President Scott Thompson said, "As the trend toward digital currency continues to gain momentum, we are focused on delivering solutions that are not just new and different, but better than what is currently the norm today. We believe that by 2015 digital currency will be accepted everywhere in the U.S. - from your local corner store to Walmart. We will no longer need to carry a wallet."

Paypal has even gone as far as conducting a study to see how life would be like without any wallets. Five Bay area residents, who are employees of the company have been asked to use their mobile phones to pay for all their purchases. Thomson added, "How confident are we in achieving this goal? So confident that we've asked five Bay area employees to embrace a digital lifestyle and use only digital currency to pay for all of their purchases. The five lucky winners will be announced at an employee event on July 11th."

 

 

2227 days ago
Philip Cohen

Why is eBay buying Zong? So that we can all have our purchases itemized on our phone bills? (Telcos are now in the banking business or are they just licensed providers of credit?) Have you ever tried to make sense of a modern phone bill? Give me a break; I’ll keep my purchases itemized on my bankcard or banking account statements, thanks.

“Zong charges merchants more than PayPal for a comparable transaction. PayPal transactions carry a fixed fee of 30 cents in addition to 2 to 3 percent of the purchase. Merchants who use Zong receive between 70 and 92 percent of the purchase amount, said Brooke Hammerling, a Zong spokeswoman.”

What? Zong (and the telco) takes a commission of between 8 and 30 percent? Would you mind passing that past me again please, I think I mis-heard it the first time …

eBay: Magento, AliExpress, Skype, Fish, FigCard, GSI Commerce, RedLaser, Where, Milo, Fetch, Zong, PayPal, Visa, MasterCard, Google, Schmoogle, whatever …

eBay’s chief headless turkey likes buying toys, none of which have done anything to improve the eBay Marketplace’s bottom line, not even in this the fourth year of this turkey’s three-year turnaround plan to change eBay from what made it so successful into, who knows what?

The fact is the rusting old hulk eBay is presently being kept afloat by the clunky PreyPal so it’s good to see these financial services boys recently squabbling and threats to PreyPal now coming thick and fast. It’s interesting times for all we eBay “haters” (oops, I mean “watchers”). I just hope that someone has remembered to bring the popcorn.

Even though PayPal clearly offers banking-type services (ie, holding depositors’ money in banking-style accounts), PayPal is mostly registered in various places not as a “bank” nor as a provider of credit but only as a “money transmitter” (like Western Union), and indeed PayPal claims that they are not even a “payment network”, and there is a minute degree of truth in that claim because it could, somewhat nonsensically, be claimed that most (but not all) of their activities do no more than facilitate the transmission of money by riding on the back of the banks’ existing payments processing systems.

In fact, the only thing creative about PayPal has been their founding use of users’ email addresses as an identifier for online payment transactions. PayPal is otherwise no more than a blood-sucking parasite on the back of, and in the main cannot function except via, the banks’ existing payments processing systems.

PayPal, outside of whatever will ultimately be left of the Donahoe-devastated eBay Marketplace, will undoubtedly eventually be consigned to the history books by the retail banks/Visa/Mastercard once those players get their “online” act together.

Some people may not like “the banks” but all those participating retail banks at least supply a professional payments processing system and even PayPal concurs with that assessment: except for any intra PayPal “deposit account” transactions, they use the banks’ payments processing systems all the time and simply could not exist without them.

Regardless, all the above comments apply equally to all of the other third-party online “payments processors” that are emerging out of the woodwork and wanting to have access to your banking account. Unless they have formal and direct arrangements with all the participating retail banks, as do the likes of Visa/MasterCard, then the result is invariably going to be as potentially problematic as is PayPal’s clunky operation for its PayPal merchants—a great many of whom can tell you a sorry tale or two.

All anyone needs to know about the clunky PayPal, at:
http://forums.auctionbytes.com/vbulletin/showthread.php?p=165263

What all buyers should know about the criminal activities of eBay, at:
http://forums.auctionbytes.com/vbulletin/showthread.php?t=23540

Is that PayPal’s blood in the water, and are those “sharks”—oops, “banks”—I can see still circling?

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

2228 days ago
Vinod Mehra

Who wants to carry wallets anymore ? And this will become more prevalent once security is improved and e wallet becomes more acceptable at the merchant level.

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