PayPal releases MasterCard – but is the company under threat from its competition?

PayPal releases MasterCard – but is the company under threat from its competition?

Since its launch back in 1998, PayPal has itself as one of the biggest and most commonly used online payment methods.

Now an independent company following the decision of eBay not to subsidise it anymore, PayPal is going strong as ever, with its total revenue increasing by 17.2% in 2016.

The success of a company depends on constant growth and innovation. In 2017, PayPal has come up with an idea that aims to help it become even bigger than it is – a credit card. The brand has partnered with Synchrony Financial to release a PayPal Mastercard card with a number of interesting perks for customers.

Firstly, there will be a two per cent cashback on every online and in-store purchase. Moreover, there will be no annual limit or any minimum redemption amount. Perhaps the most convenient aspect of the new PayPal card is the lack of restriction on how to spend rewards and no expiration date.

PayPal is clearly trying to break into the mainstream payment transaction market – if we can call the debit and credit card market as such. On paper, this new plan does look very good. People who always use PayPal for their online monetary transactions would certainly be enticed to sign up for the credit card. However, one has to ask whether this new step on PayPal’s part has been taken due to the competition they are facing from other online payment services which, almost twenty years after PayPal was founded, seem to be catching up…

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 Nasce PAYPAL Here” (CC BY 2.0) by paz.ca

Given the massive reach of Google, one can understand why Google Wallet is growing quickly. What was once Google Checkout, this service is similar to PayPal, allowing you to switch money from bank accounts and process card payments. One can envisage Google Wallet becoming more popular in the coming years, boosted by the marketing reach of the internet titan.

Skrill is one of the most popular alternatives to PayPal. Formerly known as formerly Moneybookers, this online payment service is great for international merchants and has quite low fees. Another alternative to PayPal is Trustly. Founded in Sweden in 2008, the company registered £2.7 billion in transactions in 2016 and is planning to break into the UK market. This service allows people to pay for things online directly from their bank accounts rather than via a debit or a credit card. There are also perks and advantages if you deposit using Trustly, such as doubling your deposit with some merchands – for example, on casino website MobileWins.

Another alternative to PayPal is WePay. The online payment service provider was founded in the USA in 2008 and has a great track record in terms of fraud protection. The website is also catered to the customer and is very user-friendly. Authorize.Net is also quite popular, having been around since the mid-1990s, while Neteller is one of the simplest options, with the customer just a few clicks away from sending money online.

PayPal is a massive company and is a giant in its sector, but it does not have a monopoly. Although it is a shark, there are other major players in the market, which is why it is trying new ways to make itself bigger and retain its relevance in the long run.

Main image: MWC Barcelona 2013 – eBay, Paypal” (CC BY 2.0) by Janitors

Australian Times

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