13 years have passed since eBay acquired PayPal in a $1.3 billion deal. Now, eBay and PayPal are separate companies facing the highly competitive e-commerce world on their own. According to analysists in the field, the separation will help PayPal grow more quickly and fight the competition in the mobile payments space more successfully.
eBay and PayPay as 2 Separate Companies
Based on some analysis, PayPal is expected to make some purchases of its own after the separation and is likely to target payment companies like Square or Stripe. The point is that PayPal is trying to eliminate the smaller competition.
As for eBay, the company is expected to look inward. Devin Wenig, newly appointed CEO notes eBay would focus on getting back to its roots by developing a website for mom-and-pop retailers to sell their goods — both refurbished electronics and the garage or a line of boutique designer clothes.
eBay is still the old auction site or flea market, an outdated brand in fast-moving Silicon Valley to many people. PayPal is considered as a more innovative company, and this had helped PayPal’s image.
When it comes to PayPal and Amazon, there was a potential arrangement between PayPal and Amazon that could be beneficial for both companies. PayPal was expected to get a presence on Amazon, and Amazon could reach people who don’t have bank accounts, a group for which PayPal offered solutions. As PayPal’s CEO has noted, the 2 companies had discussed this possibility.
Now, something has changed: Amazon may try reaching this group of people without bank accounts on its own. Amazon has launched “Amazon Cash” to allow for printing out a barcode, bringing it to CVS or another participating store, and feeding cash onto your Amazon balance.
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