Will PayPal be disrupted by newer payment technology companies like Stripe?
Payments
Asked by Question Bot01/Apr/20161 answer
1 Answer
F
Faisal Khan
Answered 01/Apr/2016
No, they will not be disrupted anytime soon. Here are a couple of reasons.
- PayPal is constantly reinventing themselves and staying abreast with the latest developments in the payment and payment systems world.
- They are very much on top of their game.
- They are not complacent, which would be a very important element to consider for them to be disrupted.
- In a few months, PayPal will find yet even more freedom when they become independent of Ebay. Expect more products & services to be launched.
- They have the monetary power to sustain losses (subsidize transactions) to drive others out of business (in most cases).
- They are always on the lookout to snap up payment solutions (acquire them).
- The dilution effect. Their user base is quite large and they will fight tooth and nail to defend it. A smaller user base company has relatively low chances of disrupting them, however, a large user base company like WhatsApp/Facebook, has a very sure-shot chance of disrupting.