Palmos, Czedric Darren D.

Technopreneurship Monday, 27 March 2023

BT403

05 Activity 1

Paypal: Challenging The Present Situation

Paypal: Challenging The Present Situation From a business perspective, there are some industries you
ought to stay away from at all costs. Examples include banking, supermarkets, semiconductors, and
aircraft. Because there are so many barriers to entry, the banking sector is perhaps the most challenging
to try and disrupt. Since their cash is their most precious asset, you need a lot of capital, regulatory
approval, and years of building confidence with your consumers.

Old banks do exist. Even though they do not produce anything, their business strategies haven't evolved
much in hundreds of years, and they are quite wealthy. It is practically hard to replace them because of
their immense strength. But for some reason, PayPal did not appear to care. In a remarkably short period,
PayPal has emerged as a different payment method, offering a solid alternative to your handy debit or
credit cards. PayPal has become one of the best payment solutions for almost everyone by leveraging one
of the fastest-growing business trends in the world.

PayPal spends less cash on innovation than even a medium-sized bank does. However, its technology
platform is much better. Even though PayPal has only been around for a small portion of that time,
customers trust it just as much, if not more, than they do their bank since PayPal has complete control
over data mining. With virtually every current payment innovation, PayPal is easier to market. Instead of
working directly with banks, PayPal prefers to work directly with retailers offering a real alternative to
your dependable debit or credit card.

Paypal also got a lucky break when it accidentally became the favored payment provider for eBay
transactions. It was followed a few years later by a $1.5 billion acquisition by eBay itself. Today, PayPal
holds a remarkable 20% market share of US online payments and 62.7% of the e-Wallet market. Their
direct relationships with large and small merchants accounted for nearly all that growth.

Questions: (3 items x 10 points )

1. What is PayPal's strategy?

PayPal upends the present market as well as traditional banking by offering a more practical and simple
way to transfer or receive funds. Through data mining, on every platform, and via any device, Paypal seeks
to make it easier for both customers and companies to transfer and receive transactions across the globe.
Customers can transfer and receive money using PayPal's payment alternatives. Among the services it
provides are transferring money, digital wallet/e-Wallet payments and transactions, cryptocurrency
purchases or transactions, and card payments from Mastercard -issued debit is one of what they offer.

2. What do you think are PayPal's plans to compete with the age-old and time-tested banking system?

The article above claims that traditional banks haven't altered their company's strategy in more than ten
years. I think PayPal is trying to show that the old banking system needed to be updated. In order to lower
the cost of creating such a service, PayPal uses currently existing technology by creating algorithms and
doing data mining. The company enables people and companies in more than 200 nations to conduct
transactions in far more than 25 various currencies. Online invoicing, credit card processing, and options
for buy now pay later are just a few of the various goods and services it provides to hasten the payment
process.

3. Do you think PayPal's plans are ingenious? Why or why not?

I think PayPal represents an exceptionally wise idea since the developers exploited a weakness in
traditional banking as fuel to develop a service which could easily deal against medium sized banks. Given
that it provides a simple method to wire cash between family or friends, and enterprises, PayPal presents
a new approach of processing financial transactions. You receive an additional level of safety and
fraudulent activity protection whenever you make use of PayPal. PayPal might be able to assist you in
getting your money back if you utilize their payment method to pay for such a transaction that eventually
turned out to be proven fraudulent.