Case Analysis Of Paypal

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PayPal is an online payment service established in 1998 that connect hundreds and millions of people spending, sending and receiving billions of dollars. PayPal is absolutely the most preferred payment service provider for purchasing online in the world. PayPal has grown into a user-friendly and credible way to transfer money online henceforth 95% of eBay's purchases go through PayPal. Then again, PayPal has become an independent publicly traded company. Separation will help both business take advantage of the new markets and partnership opportunities to grow in the challenging market (Mangalindan, 2014). Getting started with PayPal is very simple and this is the biggest factor to their success over the last decade. It takes only a few minutes…show more content…
PayPal core competencies is on R&D allowing them to stay ahead in the differentiation-based advantage. PayPal has invented and innovated many products and ideas that provide unique customer value. PayPal had invested heavily in building up products and facilitate transaction in P2P, mobile commerce, NFC and barcode mobile payment categories (Urrico, 2015). PayPal is working with merchants such as Subway and Burger King where customers can tap and pay as well as they can use their smartphones to order ahead, pay ahead of time and skip the line which make it simple and convenient for the customer (Perez, 2015). Similarly, Apple is collaborating with McDonald’s launching of the mobile payment service, Apple Pay but this service does not apply to all smartphone users. Customer can only use iPhone 6, iPhone 6 Plus and Apple Watch to pay for their meal. Moreover, iPhone customers are having difficulty using Apple Pay in McDonald’s. Apple Pay cause delay in their order because McDonald’s staff are not trained to use Apple Pay, as a result customer lost interest and stop using Apple Pay (Cook, 2014). PayPal also has big plan to expand to the digital remittance industry and its impact of the movement of money around the world. Foreign workers who want to send money back home, they need to stay in line, and give cash and large percentage of cash is taken to send money overseas. That long wait ritual will soon be obsolete. Pay Pal is working with Xoom a remittance company to change the way customers move their money internationally. Expansion into developing market is crucial to PayPal long-term growth. Xoom acquisition is a great opportunity for PayPal to deepen its presence in countries where Xoom already operates (Bakker,

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