PayPal in Pakistan
At a recent conference in Islamabad, Pakistan’s Minister for State for IT and Telecom: Anusha Rehman cites that the government will soon invite the likes of PayPal, Amazon and Ebay into Pakistan to start operations. This news first popped up on my timeline by a post carried out by ProPakistani and then one by Tribune.
While the efforts maybe genuine and noble, the reality is, that it will be some years before these companies turn their direction our way. I can say this with a wee bit of authority having interacted with them in the past, pursuing the PayPal case. Read More
PayPal’s 3rd Quarter Results 2015
PayPal recently released an infographic of its 3rd quarter results. What is important to note is that these are the results after PayPal split from Ebay earlier this year.
What is interesting to see here are the revenue figures of PayPal: YoY revenue increased 19% and that is indeed spectacular by any measure. Even more impressive are the numbers for payment volume and free cash flow.
Another important takeaway point was the average transaction value (it is a very crude estimate, but one that will suffice): US$69.74B / 1.22B = US$ 57.16 per transaction.
I was thinking the average would be much lower like maybe between the US$ 20 to US$ 30 range, was actually surprised to see it as high as US$ 57.16
PayPal also published the mobile numbers of 345M mobile transactions. If we take this in context with 1.22B transactions then 28.27% of the transactions being done on PayPal’s ecosystem are mobile.
Fintech Podcast: Episode 72
This week on Around The Coin podcast, Brian and I discuss all things payments and where they are heading. We reflect back on almost 1.5 years of podcasting and do a quick score card and some future gazing on some of the big, small and stealth fintech names.
How Does Paypal Work?
A question asked many times is how does a wallet work? Specifically how does Paypal (which is a wallet) work?
Here is a brief slide deck that explains the generalized concept behind how Paypal works (or for that matter how any wallet works). Read More
There is a lot of excitement in the industry after PayPal announced it was buying the remittance company Xoom. A lot many people have asked, how will this play out? What is my opinion of it? Well, here it is, feel free to disagree. I won’t talk much about PayPal + Xoom, I think it is a brilliant merger and one that would play out well in the years to come. Instead, I will focus more on the industry.
First, lets tackle where the remittance industry heading?
I would like to use two words to describe it:
Recently I wrote about Pakistan Fintech Start-Up Challenge: A Case For Building Pakistan’s Equivalent Of PayPal. A few of my friends asked me to put out some form of a primer for the product/solution that the challenge would be focused on.
Since I don’t have a specific primer on hand, I did decide to publish what I think ought to be the case. Needless to say, this is a classical case of in my humble opinion this is what the product & challenge blueprint should look like. Many will disagree, and that is perfectly ok.
The goal here is not to provide a literal blueprint, but perhaps to highlight on the various facets of the product and the challenge itself.
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Visa wants to make the process of paying for goods on your phone or iPad as easy as swiping your credit or debit card at an offline retailer. To do so,..
When the big boys enter the game, can we say the days of PayPal are numbered? I don’t think so. Traction will need to be worked on.
Everyone by now has heard, David Marcus, the CEO of PayPal has resigned from PayPal and is now going to Facebook to head Messenger. I’ve been advocating for years that Facebook will get into the payments space. I have countless posts on Quora that will testify to that fact. A lot of people kept shunning me, saying Facebook will never get into payments, citing one reason or the other.
With David Marcus jumping ship, I feel vindicated (almost). To be honest, I feel like Daniel Negreanu when he calls out cards of his opponents (in Poker). I explained my instinct about Facebook getting into payments earlier on on Quora (Why are start-ups or Facebook itself not using Facebook’s larger user base for money-transfer services?), which was part of a larger article I wrote Facebook forays into the world of online payments.
Facebook has been acquiring money transmitter licenses for a while now. They were not doing this just for the fun of it – there was/is a greater plan.
If you look at China, the success of Tencent’s app WeChat in the payment’s space has been nothing short of spectacular. Baidu is the other player that recently entered into the mobile payments space in China as well. AliPay which has 750+ Million users, is the world’s largest eWallet provider. Tencent’s WeChat and their 355+ Million mobile wallet users is huge in the mobile payments space. No one in the world can rival the success of WeChat. The only other viable contender is Facebook.
Human behavior has some very simple traits. Communicating (chatting) is perhaps the simplest and most common trait when two people meet up. On a recent post by Brian Roemmele on Quora: I cited the following reasons for David Marcus wanting to jump ship:
Facebook offers everything that David Marcus would want:
- It has a very large (virgin to payments) user base
- It has a chat client (Facebook Messenger and WhatsApp)
- It has the ability to add on apps to the messenger (just as WeChat has)
- PayPal does not have any of these elements as listed above
- The culture at Facebook was not very conducive to the operating style of David Marcus. (So many insiders whom I know at PayPal have cited this). Even Rakesh Agrawal tweeted about it..
There is no doubt, this is a great win for Facebook. Recruiting David Marcus is perhaps the best move they could have made. Very few people know the payment’s landscape very well from a 100,000 feet. David Marcus is one of the few ones, who not only knows how the entire ecosystem looks like, but has some inside knowledge of PayPal and its plus/minus points and how Facebook could possibly leverage them.
Remittances will definitely be something that Facebook would eventually embrace, however, because of David’s background, I personally think P2P payments is what he will strive after, putting those money transmitter licenses to use.
All in all, PayPal is now a ship without a captain. It would be interesting to see if they bring someone from the outside, or from within eBay. The morale as of yesterday isn’t all that good. Its somber.
David Marcus can very well pull it off. Making a world class payments platform that ties 100s of countries together. Very few people in history have been given this chance, I for one am hoping he pulls through. Best of luck – for you will need it.
Paying for your coffee with your smartphone is so old-school. So, like, 2010. Today, PayPal is working on paying with wearable devices like activity trackers, smartwatches, or possibly even smart s…
Whilst the CTO is myopic when it comes to the payments “world”, nonetheless a great article to read. There is no doubt PayPal has done a lot of good, however, the games have just begun!
See on venturebeat.com