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Tag: paypal

  • PayPal Here: A Thousand Sign-Ups Per Hour

    PayPal Here: A Thousand Sign-Ups Per Hour

    PayPal Here was announced last week as the competitor to Square, a mobile payment option for small businesses. It’s a new service that allows users to make secure transactions using a card reader that plugs into the coaxial jack on a smartphone.

    PayPal Here has been available now for a week. How well has this new venture played out for the payment company? Anuj Nayar, director of communications for PayPal, wrote on the PayPal blog that they were receiving 1,000 sign-ups per hour in the first 24 hours after the announcement.

    As we previously reported, the service is not only about the card reader as it also comes with the PayPal Here app. This allows the app to scan cards if the reader is not available. The app also accepts payments via PayPal, checks and invoices. PayPal Here charges 2.7 percent of every transaction via credit card whereas Square charges 2.75 percent.

    Nayar also wants to remind everybody that PayPal Here is currently available to select merchants in the US, Canada, Australia and Hong Kong. The service will be available to other merchants in those countries next month. They currently have no timetable on when the service will be available outside of those countries.

    As an added bonus, Nayar provided video of the launch event in San Francisco last week where PayPal president David Marcus announced PayPal Here.

  • PayPal Bringing Its Services To China And India

    PayPal Bringing Its Services To China And India

    PayPal is one of the largest names in the online payment industry. It makes it super easy to make online transactions across national borders. Making the transactions with other people within your borders is a bit trickier if you happen to live in certain countries. PayPal is hoping to change that for China and India.

    PayPal announced today their intentions to bring domestic transactions through their service to the people of China and India. Of course, the biggest issue in terms of entry lies with China and PayPal is currently “applying for a domestic payment license” within the country according to PC World.

    China would be a fantastic market for PayPal to enter due to its estimated 193 million e-commerce users. Besides government regulations, PayPal has another obstacle in their way – AliPay. AliPay is the already established e-payment group under the Alibaba Group. AliPay owns the largest share of the online payment market at 46.9 percent.

    This leaves PayPal with quite the challenge when and if they enter the Chinese marketplace. Analysts speaking to PC World seem to agree with one saying that the “competition will be fierce.” In what could be an even larger threat, however, is obtaining the business license.

    Chinese law requires that any online payment system be Chinese owned. Alibaba Group is an internationally owned company so it was required to spin off AliPay into its own Chinese-centric business. What if PayPal fell under the same regulations? Would they create a new company just for China?

    It’s important to note that PayPal operates within Hong Kong. While it doesn’t automatically give PayPal the go ahead for mainland China, it probably is a bargaining tool. The amount of transactions that flow into Hong Kong everyday must entice the Chinese government into wanting PayPal for the mainland.

    Fortunately, PayPal would face no such hurdles in India. While the online payment economy is much smaller in India, it can only go up from here. Research had indicated that 4.5 percent of all retail transactions will be performed online in India by 2016. This leaves PayPal the perfect spot to swoop in and get in on India during its growth phase.

    All of this is just the next step in PayPal’s move to expand beyond their initial offering. They recently announced PayPal Here which is a mobile payment system for small businesses. Just think if PayPal was able to get PayPal Here into China, it would explode.

    The company has also moved into big box retail by offering PayPal Checkout to customers of The Home Depot. The service allows customers to buy products with only their phone number and a PIN.

    It will be a while before PayPal hears back on whether or not they will be allowed to operate in China. We’ll keep you updated on any developments.

  • PayPal Here: PayPal’s Square Competitor is Here

    PayPal Here: PayPal’s Square Competitor is Here

    We previously reported on rumors that PayPal was getting ready to launch a Square competitor. Now, the rumors have become reality, as today, PayPal unveiled PayPal Here.

    Like Square, it comes with a card reader you plug into your smartphone and a free app. Merchants can still accept payments without the reader, however, as the app will also scan cards. Actually, beyond the major credit cards, PayPal Here will also accept payments via PayPal (obviously), checks and invoices.

    The rate is 2.7% per transaction. Square’s is 2.75% per swipe for credit cards.

    “PayPal Here is the world’s first global mobile payment solution that allows small businesses to accept almost any form of payment,” says PayPal VP of Mobile David Marcus. “It’s designed to help those merchants make more sales and grow their business with confidence. And it gives them choices. They can accept payments by swiping cards with a fully encrypted thumb-sized card reader, or use a phone camera to scan and process cards and checks. It also allows them to invoice directly from the mobile app and, of course, accept PayPal in a brand new way.”

    “So, you’re asking, how is this different from other small business mobile payment solutions?” he continues. “The key differentiator is that it comes from PayPal, a trusted brand in the online payments industry with more than 100 million customers around the globe and years of proven payment innovation, driving growth for millions of businesses globally. PayPal Here comes with our world-class fraud management capabilities, and our 24×7 live customer support. In addition to accepting more payment methods, PayPal Here offers a simple flat rate of 2.7% for card swipes and PayPal payments. Merchants are also given a business debit card for quick access to their funds and 1% cash back on eligible purchases – which means if you use the debit card, your fees are actually just 1.7%!”

    Earlier this month, Square itself launched a new iPad app – Square Register, promising “everything” you need to run a business. As Square gains popularity among businesses, PayPal will have its work cut out for it on the competition front.

    For PayPal, it’s been a big week. The company also unveiled a new digital wallet product, which it deemed “the future of PayPal”. Here’s a closer look at that:

    PayPal Here will be available for iPhone and Android. It’s not actually available yet, but PayPal will let you know when it is if you give them your name, email address and phone number.

  • PayPal Digital Wallet Unveiled At SXSW: Here’s 20 Minutes Of Demo

    PayPal Digital Wallet Unveiled At SXSW: Here’s 20 Minutes Of Demo

    PayPal introduced a new digital wallet today at SXSW. “This is the future of what PayPal is going to be looking like over the coming months,” PayPal VP, Global Product & Experience, Sam Shrauger declares.

    He actually discussed the offering on the PayPal blog the other day. In that post, he ran down the following lis of what the new digital wallet will make possible:

    Separating the purchase from the payment: Buy something in a store, take it home and decide later how you want to pay for it. PayPal is the only wallet that will offer a 5-7 day grace period for consumers to change their minds.

    Switch from one funding source to another

    Decide to pay over time in installments

    Apply different sources of value (gift cards, airline miles, loyalty points, etc.)

    Personal Lists: Search for items, compare prices and create lists of things you want to buy for a variety of situations.

    Found Money: Your wallet will find deals and coupons for items on your personal lists once you’re in the store. Forgot about that coupon you were saving? The PayPal wallet won’t.

    Spending Rules. Create specific “set asides” like travel funds, set rules by purchase amount, tie specific payment instruments to specific merchants – all in your wallet, without setting up any new bank accounts or opening any new credit cards.

    Here’s about 20 minutes worth of demo of the new digital wallet from Shrauger:

    PayPal will begin rolling out the new features in late May.

    While we’ve yet to see it, PayPal is rumored to be launching a mobile payments dongle to compete with Square. Square has enjoyed unprecedented success in a short time of existence. Such an offering from PayPal, which is more of a household name, could do very well.

    In other PayPal news this week, vice president of customer advocacy and operational excellence Eric Salvatierra was killed when he was struck by a commuter train in Menlo Park.

  • Big Reversal On Erotica Policy By PayPal

    Last month, PayPal notified a number of important e-book distributors and gave them a surprising mandate to remove certain erotica categories from their catalogs or else. The categories included any erotica that covered rape, incest and beastiality. The “or else” was the threat of being banned from using the largest process ordering company on the planet, PayPal. A pretty heavy threat. The e-book publishers listened, took notice and responded. What choice did they have?

    So the news of a big reversal in PayPal’s policy today is sweet for the ears of many of the e-book distributors and publishers that were feeling threatened. Mark Coker, CEO of Smashwords and literally dozens of authors who opposed the policy as well as other organizations affected by the policy are pleased with the news. PayPal is calling it a “significant update to it’s acceptable use policy.”

    Social Media outrage makes PayPal Updates Erotica Policy TechCrunch: http://t.co/ST9Of4pl(image) 42 minutes ago via Echofon ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    The improved policy basically says PayPal will only prohibit specific books, not entire classes of books. It also says that the policy will only apply to publications containing obscene words and pictures. According to PayPal’s blog post, “We are working with e-book publishers on a process that will provide any affected site operator or author the opportunity to respond to and challenge a notice that an e-book violates the policy.”

    Hooray! RT @PhilippaJane Paypal… FINALLY! http://t.co/OiacMXD5(image) 39 minutes ago via TweetDeck ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

  • PayPal Rumored To Launch Square-like Smartphone Dongle

    Now that Square’s off and running in the credit card-swiping-from-mobile-phone market, PayPal is realizing that they should probably get in on the action. According to sources that spoke to GigaOM, PayPal will announce on Thursday that it’s launching a service that will allow small businesses to use smartphones as a device to process credit cards.

    The new service will include a smartphone payment dongle that “might be shaped like a triangle” and will stake a claim directly in the turf of Square, as well as other existing services like Intuit and Verifone. The decision to mobilize customer’s payment options coincides with PayPal’s recent deployment of its services to 2,000 Home Depots. While that model is tailored for box stores and larger businesses, PayPal’s launch of a dongle that would turn any smartphone into a point of sale is likely intended to invite small businesses and the self-employed to begin utilizing PayPal as a payment method.

    A PayPal spokesperson declined to confirm the info from GigaOM’s source, but then seemingly affirmed all speculation by stating, “We’re unveiling what we believe will be the future of commerce for small businesses.”

    Society certainly doesn’t have any shortage of people looking to spend money so there’s likely enough girth to the market for multiple smartphone-turned-credit card machines to coexist. Stay tuned till Thursday to find out if a dongle is in fact what PayPal is launching in order to ferry us into the “future of commerce.”

  • PayPal Vice President Eric Salvatierra Struck By Commuter Train, Killed

    PayPal Vice President Eric Salvatierra has been struck and killed by a commuter train in Menlo Park, California. His remains were identified yesterday by the coroner of San Mateo County.

    According to the San Mateo County Times, Salvatierra was struck at 9:30 AM on Friday. Salvatierra was 39 years old and leaves behind a wife and three daughters. Details of Salvatierra’s death are not yet being released by authorities, though his uncle told reporters that Salvatierra had his bike with him at the time of his death.

    Salvatierra was vice president of customer advocacy and operational excellence. PayPal has not yet responded to a request for comment.

  • Tweet A Beer: Send Your Buddies A Brew Via Twitter

    Tweet A Beer: Send Your Buddies A Brew Via Twitter

    I’m not in the business of buying my friends beer. First off, I have a limited amount of funds and a personal need for beer. A lot of people like to pay people back by buying them a beer. No way – once they drink the beer (and a few more) they forget you payed them back with a beer. Plus, my friends would probably just bitch and moan about the beer I bought them anyway.

    Actually, that’s just the image I like to put out there. Otherwise, people would abuse my beer generosity. In reality, I love buying my pals a pint. But what about my friend that lives across the country? If I want to buy him a beer I have to either schedule an expensive trip or wait until he comes around. Not very practical.

    One startup app hopes to give you another option for doling out beers. Tweet-a-Beer lets you send your buddy a beer via Twitter. And it’s launching this week at SXSW.

    Here’s how it works, from the Tweet-a-Beer site:

    Tweet-a-Beer was brewed and bottled by tenfour and Waggener Edstrom, longtime drinking buddies in Portland, Oregon. Tweet-a-Beer connects your Twitter and PayPal accounts together to ensure that distance, agoraphobia, and gang rivalries no longer prevent you from sharing a pint.

    Your Twitter and Paypal accounts are linked via “T-commerce” startup Chirpify, a platform that lets users transfer funds via @ mentioning.

    Once you enter your lucky friend’s Twitter handle, you can add a reason and a location if you so choose. Of course, you won’t be sending an actual beer via Twitter – I don’t think the technology is there yet. You’ll be sending $5, which should cover most beers (except your high-ABV, or some craft beers).

    The app’s already getting some use on Twitter, as people are adding their own reason for spotting their friends a pint:

    Pay @thegmancometh $5 for a beer on me – A cheeky beer to start the weekend http://t.co/63S8OqYI #tweet_a_beer 2 minutes ago via Chirpify ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Pay @mbrouwers $5 for a beer on me – This economy needs stimulating. http://t.co/sxG5r6Rv #tweet_a_beer 10 minutes ago via Chirpify ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Pay @jimstorer $5 for a beer on me – Cuz it’s beer o’clock somewhere http://t.co/yIzRjeY3 #tweet_a_beer 9 minutes ago via Chirpify ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    It’s Friday. I’m thirsty. My Twitter handle is @joshgwolf. Just sayin’.

    [h/t Mashable]

  • PayPal Agrees to Ban Books with Obscene Content

    PayPal is sparking some tension in the publishing world by requesting that e-book contributors ban books that contain “obscene themes including rape, bestiality or incest.” PayPal notified Mark Coker, founder of e-book publisher and distributor of Smashwords, that it would limit “the company’s PayPal account unless Smashwords removed from its Web site e-books “containing themes of rape, incest, bestiality and underage subjects.”

    BookStrand.com and eXcessica were also given the same ultimatum.

    A PayPal spokesman confirmed that the company sent such notifications to companies but declined to identify specific recipients.

    PayPal said that it had to restrict certain content to appease banks and credit-card companies. The following statements were made in an e-mail from PayPal to SmashWords on February 14th:

    “Our banking partners and credit-card associations have taken a very strict stance on this subject matter.”

    “Our relationships with the banking partners are absolutely critical in order to provide the online and mobile services we [offer] . . . to our customers. Therefore, we have to remain in compliance with their rules, which prohibit content involving rape, bestiality or incest.”

    Spokespeople at American Express, MasterCard, Visa and big card-issuing banks JPMorgan Chase, Citigroup and Wells Fargo did not respond to requests for comment but it is important to reflect on how bank policies are bleeding into other industries.

    Policy makers that regulate card-issuing banks are essentially gaining a bigger piece of the pie and could ultimately gain inexorable power.

    Could banks eventually dictate what books get published? Will retailers like Barnes and Noble need to force customers to pay in cash if they want to offer books that have been branded as obscene?

  • PayPal Coming To 2,000 The Home Depot Stores Across U.S.

    Are you an avid PayPal user and a home remodeling aficionado? Well, you may want to listen up.

    While PayPal has been in a small number of The Home Depot stores for a few weeks now, the payment company is now planning to roll out the program to all 2,000 of their stores across the country. The PayPal blog details the payment company’s plans to roll out to all the stores over the next two weeks.

    You may, like me, be wondering what the point of using PayPal in stores is. It’s quite simple really. It removes the need of needing a wallet as a user can just punch in their phone number and their unique PayPal PIN. Users can use a PayPal card in combination with their PIN number to make purchases as well.

    Here’s a video that shows the process in action:

    You can start using PayPal at The Home Depot stores in the South and North Plains this week and will continue to roll out to other areas ending on March 8 in Chicago and St. Louis. The schedule in full is as follows:

    Starting on February 27th
    South – Austin, Atlanta, Dallas, Miami, New Orleans, Oklahoma, Tampa/St. Petersburg
    North Plains – Minneapolis, Omaha, Wisconsin, Nebraska, North Dakota, South Dakota

    Starting on March 2
    West – Bay Area, Denver, Las Vegas, Los Angeles, Phoenix, Sacramento, Salt Lake City, San Diego, Seattle
    NY Metro – New York City, Long Island
    North – Boston, New Jersey, New York, Philadelphia

    Starting on March 7
    Mid-West – Cincinnati, Cleveland, Detroit, Ohio Valley, Pittsburgh
    Mid-Atlantic – Washington D.C., Baltimore
    South Atlantic – Louisville, Charlotte, South Carolina, North Carolina, Virginia, Nashville

    Starting on March 8
    Central – Chicago, St. Louis

    I don’t know if I agree with PayPal as this being the future of retail shopping, but it definitely makes things more secure. I must applaud The Home Depot, however, for taking this initiative to implement modern technology unlike a certain competitor.

    If you want to get ready for when the program rolls out to your area, you can sign up for a PIN now.

  • Paypal Puts Publishers’ Panties In A Wad

    Paypal Puts Publishers’ Panties In A Wad

    So what’s got e-book publisher for independent authors Smashwords and others who are concerned about censorship all worked up? Apparently, PayPal issued Smashwords an ultimatum regarding certain categories of erotica published through the site. Mark Coker, Smashwords founder reported the payment processor PayPal had told the publisher to remove books in certain categories (erotica) and threatened to stop doing business with them if they didn’t comply. In an e-mail issued to Smashwords’ Authors, Publishers and Literary Agents, Coker alerted and apologized for having to modify the site’s Terms of Service regarding erotic fiction containing bestiality, rape and incest.

    “Paypal is requiring Smashwords to immediately remove the above mentioned categories of books. Please review your title(s) and proactively remove and archive such works if you are affected. I apologize for the short notice, and I’m especially sorry for any financial or emotional hardship this may cause the authors and publishers affected by this change. As you may have heard, in the last couple of weeks PayPal began aggressively enforcing a prohibition against online retailers with certain types of ‘obscene’ content.”

    Response to the news and the issue has been heated. An article written by Selena Kitt, entitled, “Slippery Slope: Erotica Censorship” posted on her blog had a big response. Here’s an example:

    (image)

    Erotica is one of the most popular genres on the net today and according to Chris Meadows in TeleRead, (news and views on e-books, libraries, publishing and related topics) Erotica has played a key role in the early adoption of e-books, which allowed people to read what they wanted, anywhere, without having to be embarrassed by any sexy book jackets or covers. It’s really a shame that payment processing concerns from companies like Amazon and PayPal are making it harder for online retailers to sell.

    @jane_l Thx for keeping the PayPal #censorship front and centre. Hopefully more #writers, #booklovers and bloggers will speak up.(image) 2 hours ago via web ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    @thDigitalReader No, PayPal isn’t stopping Smashwords from doing business. They’re just stopping them from using PayPal. @EvilWylie(image) 2 days ago via TweetDeck ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

  • eBay Announces New Partnerships

    eBay Announces New Partnerships

    Today at the Mobile World Congress in Barcelona, eBay announced new partnerships with Three.co.uk, Yotal and Entradas, and unveiled new mobile app updates that enhance mobile commerce capabilities. eBay and Three.co.uk have paired up to deliver Android devices preloaded with eBay mobile apps, on the UK’s fastest growing mobile network.

    eBay’s PayPal suite has aligned with Spain’s ticketing company Entradas, to allow users to get tickets on a mobile device, and also Yotel, for users to book rooms on their smartphones. PayPal also launched its PayPal Carrier Payment Network, which makes mobile payments easier for more merchants. According to Juniper Research, the digital goods industry in expected to bring in $220 billion by 2014, with eBay having a relevant stake.

    In 2011, eBay mobile commerce generated $5 billion, and PayPal mobile generated $4 billion in payment volume, with its mobile apps having been downloaded more than 70 million times. In 2012, eBay expects to do $8 billion in mobile commerce retail volume. John Donahoe, president and CEO of eBay Inc., states, “mobile commerce is changing the way people shop and pay, and the ways in which merchants of all sizes engage consumers. eBay is driving mobile commerce innovation, partnering with carriers and merchants to build a new retail ecosystem that drives growth by delivering anytime, anywhere value and rich multichannel shopping experiences for consumers.”

    eBay also just released its new Core mobile app version 2.5.0 update or iPhone, which now delivers shipping calculations, can research pricing trends and make sales possible from virtually anywhere. The update also includes improved image quality, push notifications on bids and Twitter integration.

  • Chirpify Lets You Buy and Sell on Twitter

    A Portland, OR startup called Chirpify has aligned with PayPal to introduce a platform to where users can buy and sell things, and donate and transfer funds using Twitter.

    Chirpify calls this ‘T-commerce,’ and users can make and receive direct payments in a way similar to writing a check. To pay someone for anything, simply tweet their name, the amount, and reason. For example, to donate funds to a politician, the tweet would look similar to “@politician $Donate.” All receipts appear on a user’s dashboard, and currently the maximum transaction amount is $2000. Though it’s free to sign up for the service, to receive payment, the user pays a flat fee of 2%.

    Twitter fundraising is also convenient with Chirpify. A non-profit can collect donations with one tweet, retweets also work and the system of donor info collection is adjustable.

    At present, the only company using Chirpify is Powerbar, and founder Chris Teso hopes more vendors will catch on. Teso describes his platform’s appeal as a way for organizations to “instantly monetize their followers.” Teso’s previous T-commerce venture, Sell Simply, was launched last year for small vendors, but Chirpify is aimed at larger companies.

    So far, vendors have used Twitter as mostly a broadcast platform. Chirpify lets users add commerce into their Twitter streams, allowing anyone to purchase something off of a tweet, just by responding with “buy.”

  • DMARC: Major Web Players Join Forces On Antiphishing Standards

    Fifteen major companies have joined forces on a “technical working group” called DMARC to develop new standards to help reduce the threat of spam and phishing emails.

    DMARC stands for Domain-based Message Authentication, Reporting and Conformance.

    The companies involved include: Google, Facebook, LinkedIn AOL, Microsoft, Yahoo, PayPal (eBay), Bank of America, Fidelity Investments, American Greetings, Agari, Cloudmark, eCert, Return Path and Trusted Domain Project.

    In a post on Google’s Online Security Blog, product manager Adam Dawes writes:

    Industry groups come and go, and it’s not always easy to tell at the beginning which ones are actually going to generate good solutions. When the right contributors come together to solve real problems, though, real things happen. That’s why we’re particularly optimistic abouttoday’s announcement of DMARC.org, a passionate collection of companies focused on significantly cutting down on email phishing and other malicious mail.

    Building upon the work of previous mail authentication standards like SPF and DKIM, DMARC is responding to domain spoofing and other phishing methods by creating a standard protocol by which we’ll be able to measure and enforce the authenticity of emails. With DMARC, large email senders can ensure that the email they send is being recognized by mail providers like Gmail as legitimate, as well as set policies so that mail providers can reject messages that try to spoof the senders’ addresses.

    We’ve been active in the leadership of the DMARC group for almost two years, and now that Gmail and several other large mail senders and providers — namely Facebook, LinkedIn, and PayPal — are actively using the DMARC specification, the road is paved for more members of the email ecosystem to start getting a handle on phishing. Our recent data indicates that roughly 15% of non-spam messages in Gmail are already coming from domains protected by DMARC, which means Gmail users like you don’t need to worry about spoofed messages from these senders. The phishing potential plummets when the system just works, and that’s what DMARC provides.

    “Email phishing defrauds millions of people and companies every year, resulting in a loss of consumer confidence in email and the Internet as a whole,” said Brett McDowell, Chair of DMARC.org and Senior Manager of Customer Security Initiatives at PayPal. “Industry cooperation – combined with technology and consumer education – is crucial to fight phishing.”

    “BITS has been committed to defining and improving email authentication standards and practices to meet the financial services industry’s needs. DMARC’s evolutionary approach is critical in assuring these needs are met for years to come,” said Paul Smocer, President of BITS, the technology policy division of The Financial Services Roundtable.

    DMARC is encouraging interested organizations to read the specification, join their mailing list and start testing and deploying standards, by learning the details at DMARC.org.

  • CES 2012: Ebay Projects $8 Billion In 2012

    CES 2012: Ebay Projects $8 Billion In 2012

    Ebay CEO John Donahoe announced at CES 2012 yesterday that “eBay is projecting 2012 global mobile gross merchandise volume (GMV) to surpass $8 billion.”

    As Zach Walton reported yesterday, Paypal also projects that its payment volume will be $7 billion in 2012.

    Both eBay and Paypal are riding an ever-climbing wave of sales made on mobile devices – smartphones, tablets, etc. Ebay’s sales volume for mobile sales doubled last year to $5 billion from the nearly $2 billion bar set in 2010. Paypal’s volume was up from $4 billion in 2010 to that $7 billion mark in 2011.

    Smartphones and tablets allow consumers to find and purchase items without having to be at a home computer or even laptop. Ebay boasts multiple apps for iPhone that include features that aid in last-minute bidding, research of sales trends, even barcode scanning to help fill in item descriptions. For buyers, the app gives you alerts, price comparison capability with barcode scanning, and, of course, pay in the app.

    We reported last week that Walmart is spending tons of money to acquire and develop mobile purchasing position in their market.

  • CES 2012: eBay, PayPal Investing Heavily In Mobile Transactions

    CES 2012: eBay, PayPal Investing Heavily In Mobile Transactions

    The mobile payment industry is booming and the eBay company is at the center of it.

    eBay was involved in two industry panels during CES that discussed the future of digital and mobile payment industries. The company was able to announce record mobile payment volume.

    The Ebay Ink Blog was kind of enough to recap the panels that Ebay was involved with. The first panel was PayPal at “Mobile Payment Basics: How the Technology Works.” The title sounds like a boring introductory course, but it turned into a discussion on the pros and cons of the “wallet in the cloud” versus NFC solutions for mobile payments.

    “We see the wallet in the cloud as the best way to bridge the gap between the online and offline world,” said David Marcus, VP/GM of Mobile for PayPal.

    Andrew Paradise, CEO of Aislebuyer, agreed saying, “If I lose my iPhone, I don’t want to have to cancel all my credit cards. It would be no different than losing my wallet.”

    Bill Gadja, Head of Mobile for Visa, was more in favor for NFC solutions, but said that “whatever technology we end up using, it’s all going to come down to the widespread education and adoption by the individual merchants.”

    All at the panel agreed that 2012 may very well be the year of the digital wallet. Paypal used this to announce that their mobile payment volume had reached $4 billion, a huge increase from the original prediction of $1.5 billion.

    The second panel, aptly named “Planet of the Apps,” included the eBay company proper with Steve Yankovich, VP of Ebay Mobile, speaking on the panel.

    The panelists discussed trends in mobile apps in 2011, but Yankovich stressed the importance of QR codes in 2011. He predicts that the next big trend will be apps that utilize the camera on mobile devices.

    Chris Hercik, Creative Director at Sports Illustrated, said that organizations need to adapt and react to shifts in consumer behavior. He presented the example of readers using the Sports Illustrated mobile app are asking for interactive ads instead of having to reject or be put off by them.

    Yankovich went on to equate eBay to plumbing in that they only exist to connect the buyer to the seller.

    eBay, like PayPal, did well in mobile in 2011 as well. The company’s global mobile gross merchandise volume reached $5 billion in 2011.

  • PayPal Responds To Violin Incident

    On Wednesday we ran a story about PayPal’s latest PR problem. It seems a woman sold an antique violin worth $2500. When the buyer received it, however, there arose a dispute over the label (which is apparently not uncommon the in the violin world). When the buyer asked PayPal for a refund, they decided that the violin must be counterfeit, and ordered the buyer to destroy it in order to get his money back.

    While preparing that story, I sent a request for comment to PayPal. They got back to me with the following statement:

    While we cannot talk about this particular case due to PayPal’s privacy policy, we carefully review each case, and in general we may ask a buyer to destroy counterfeit goods if they supply signed evidence from a knowledgeable third party that the goods are indeed counterfeit. The reason why we reserve the option to ask the buyer to destroy the goods is that in many countries, including the US, it is a criminal offense to mail counterfeit goods back to a seller.

    Unfortunately, this isn’t really that much of an answer. They decline to discuss the specifics of the case, but state that signed evidence from a knowledgeable third party is required before they ask the buyer to destroy an item. According to the seller, however, the violin had already been examined before being sent, and its authenticity was confirmed. It remains unclear whether PayPal really did require the buyer to present proof from a third party before ordering the violin’s destruction. I asked PayPal’s representative in a follow-up email whether the buyer had provided the necessary evidence. I also asked what, if any, recourse the seller might have, since she has lost both the violin and the $2500 she was paid for it. As yet I have not received a response.

  • Scott Thompson Gone to Yahoo, What’s Next For PayPal?

    Scott Thompson Gone to Yahoo, What’s Next For PayPal?

    As you may know, Yahoo announced that PayPal President Scott Thompson is its new CEO. That means he’s no longer going to be President of PayPal. This isn’t going to be a Jack Dorsey-like situation, where he has prominent roles in two companies.

    eBay CEO John Donahoe is taking over for Thompson at PayPal in the interim. eBay is sharing an internal memo that all PayPal employees received from Donahoe today. It says:

    As you may already have seen, Yahoo! announced this morning that Scott Thompson is joining the company as CEO, effective immediately. Scott informed me Tuesday afternoon, saying that despite his passion for PayPal, this was an opportunity he felt he had to take. I know I speak for everyone in wishing Scott the best.

    I will serve in the interim role as President and will be meeting with the PayPal leadership team this morning to plan a seamless transition. And while I’m sure Scott’s decision is a shock to many of you, as it was to me, there is one thing I am certain of: PayPal has an enormous opportunity in front of it and we will not slow down. We will not miss a beat. And we will continue driving the incredible momentum that each of you has helped to create.

    PayPal had an outstanding 2011 and a strong close to the fourth quarter. PayPal’s vision is clear. Our strategies are set and we have a strong, focused leadership team in place. And across PayPal, we have you — an incredibly talented team, committed to creating the future of money and changing how the world shops and pays.

    Let’s do it, and take this special business to the next level in 2012 and beyond.

    Amanda Pires, with PayPal Global Communications, said: “Scott was a terrific leader for the PayPal business over the last seven years, and I know all of PayPal joins me in wishing Scott the best in his new role. He will be missed.”

    Just before Christmas, eBay announced the acquisition of BillSafe, a purchase-on-invoice technology provider, which would be rolled into PayPal in Europe.

  • PayPal Orders Antique Violin Worth $2500 Destroyed

    Fresh off news that President Scott Thompson is heading off to be Yahoo’s new CEO, PayPal again finds itself with a bit of a PR problem today. Last month we ran a story about PayPal’s severe mishandling of Regretsy’s attempt to raise funds for needy children at Christmas. Now it seems that they’ve stepped in it again. A post on Regretsy’s blog late yesterday contained a letter from a reader who had a very interesting story to tell.

    It seems this reader, Erica, had sold a $2,500 violin (after having it authenticated by an expert). She received payment via PayPal. The buyer, however, disputed the label, which is apparently not uncommon with antique violins. When the buyer contacted PayPal, they determined that the violin must be counterfeit – how a violin could be counterfeit is unclear – and insisted that the buyer destroy it in order to get his money back. The buyer complied, sending the following picture of the splintered violin – with the disputed label displayed prominently – to Erica and to PayPal.

    Broken Violin

    Once the post went up on Regretsy, it did not take long for the situation to be picked up on Twitter and Reddit. Most people were, as you might imagine, outraged.

    Every new story I hear about @PayPal fills with RAGE RAGE RAGE. Their immorality is exceeded only by their mind-boggling lack of logic. 36 minutes ago via Twitter for Mac · powered by @socialditto

    There’s an opportunity for a paypal competitor. One with better service and that doesn’t have ppl destroying antiques. http://t.co/vnpcofBY 1 hour ago via Echofon · powered by @socialditto

    The puppy I ordered over eBay does not have the advertised race! Reported as counterfeit, PayPal asks for destruction – who am I to object? 1 hour ago via web · powered by @socialditto

    Celebrations involved destruction of entire orchestra. “@nytimes: PayPal Executive Named C.E.O. of Yahoo http://t.co/QBy3EdXn 1 hour ago via Twitter for iPhone · powered by @socialditto

  • Who is Scott Thompson (Besides Yahoo’s New CEO)?

    Who is Scott Thompson (Besides Yahoo’s New CEO)?

    Who is Scott Thompson?

    Well, there are a few Scott Thompson’s out there. One of them is Yahoo’s new CEO – Not to be confused with Scott Thompson from Kids In The Hall:

    This Scott Thompson was the president of eBay’s PayPal. Before that, he was Senior Vice President and CTO at the company.

    As President of PayPal, Thompson had overall responsibility for establishing PayPal as the leader in global online payments. As SVP and CTO, he oversaw information technology, product development and architecture for PayPal.

    Before his time at PayPal, Thompson was Executive Vice President of technology solutions at Visa subsidiary Inovant, which was designed to oversee Visa’s global technology. Thopmson oversaw Visa’s global payment system.

    Thompson was also Chief Information Officer of Barclays Global Investors. There, he is credited with implementing a new strategic technology platform and global infrastructure.

    He’s also worked with Coopers and Lybrand to deliver IT solutions to financial services clients, including Wells Fargo.

    Thompson received a bachelor’s in accounting and computer science from Stonehill College

    He’s also on the board of directors for F5 Networks and Zuora Inc. The former is an IT architecture company and the latter is a subscription billing and payment solutions provider.

    Last year, Thompson received an Ernst & Young Entrepreneur Of The Year award (though so did 9 others).

  • Yahoo Taps PayPal President As New CEO

    Yahoo’s search for a new CEO appears to be over this morning, as the company has announced that they have tapped PayPal president Scott Thompson for the job. The appointment, which was first rumored late yesterday, was confirmed this morning via press release from Yahoo. Thompson’s appointment takes effect on Monday, January 9th.

    Speaking on the appointment, Roy Bostock, Chairman of Yahoo’s board of directors, said, “Scott brings to Yahoo! a proven record of building on a solid foundation of existing assets and resources to reignite innovation and drive growth, precisely the formula we need at Yahoo!”

    This appointment comes almost four months to the day after the announcement that Yahoo had fired CEO Carol Bartz. Bartz was apparently fired over the phone by Bostock. Bartz had been hired in 2009 to help dig the struggling company out of its troubles, a task at which she was largely unsuccessful. Yahoo has been stepping up efforts to find a replacement in recent weeks. In the interim, the company has been headed by CFO Tim Morse.

    Meanwhile, eBay has announced that eBay CEO John Donahoe will take the reins of PayPal until a new president can be appointed.

    [Source: Yahoo Press Release]