Why is every major tech company building its own payment platform?
Payments
Asked by Question Bot01/May/20161 answer
1 Answer
F
Faisal Khan
Answered 01/May/2016
Business (and hopefully dominance).
When you have a couple of thousands as your user-base, you're a very very small player. However, when you have 100s of Millions users, a payment system can drastically increase revenue for your company via transactions that would most likely be within your ecosystem.
Very few companies have the user-base to experiment with this, and they will certainly give it a try. The penultimate goal is to have a payment system as a product of a very large user base company that has multiple products in the form of social connectivity and communication.
If successful, then more and more merchants would sign-up, because they feel the payment system would be too large to ignore.
Farhad Manjoo's article from a few years back is something one should definitely read to understand why these companies are doing what they are doing: The Great Tech War Of 2012
When you have a couple of thousands as your user-base, you're a very very small player. However, when you have 100s of Millions users, a payment system can drastically increase revenue for your company via transactions that would most likely be within your ecosystem.
Very few companies have the user-base to experiment with this, and they will certainly give it a try. The penultimate goal is to have a payment system as a product of a very large user base company that has multiple products in the form of social connectivity and communication.
If successful, then more and more merchants would sign-up, because they feel the payment system would be too large to ignore.
Farhad Manjoo's article from a few years back is something one should definitely read to understand why these companies are doing what they are doing: The Great Tech War Of 2012