Fintech Digest: eBay vs. PayPal, the international payment system on the blockchain
Fintech Hi, Habr!
One of the main topics on which participants of core conferences and columnists in the media break their spears - what form of cooperation with a FINTECH startup is optimal? Takeover or partnership? And adherents of each approach argue very convincingly. There is an opinion, it's time to put an end to this dispute. Because the right answer simply does not exist.
The financial world is changing too fast for the decision to be correct and unshakable. Let's look at the story with eBay and PayPal, unfolding before our eyes.
')
In 1999, a young but already very respectable eBay company listed on NASDAQ decided that it needed its own payment system. And she bought the service Billpoint, because it seemed safer and calmer. However, by that time, the lion’s share of the auctioneers used the P2P payments PayPal service that had just emerged, which was originally designed for instant transactions on Palm Pilot communicators (does anyone remember them at all?), But it was perfect for online auctions. In general, the P2P payments on the Internet in 1999 were a very cool innovation, which, despite the glitches and the very strange work of supporting PayPal, quickly brought the startup into the market leaders. eBay honestly tried to develop its service, but as popularity grew, PayPal first entered into a partnership agreement, and then in October 2002 bought the service for one and a half billion dollars. Billpoint was sent to the dustbin of history.
For almost 13 years, PayPal has been “its” eBay service, which, in general, suited everyone. But in early 2015, the company divorced. And up to the present, they have worked in the mode of exclusive partnership. Which again suited everyone. Suddenly out of the blue: eBay denies PayPal the exclusivity of payment service and enters into a contract with the Dutch company Adyen. PayPal will remain the eBay payment operator in the future, and a smooth migration to the Adyen platform will not end until mid-2020. And it is possible that eBay again decides to make a partner of its own unit.
Knowledgeable languages ​​say that the reason for parting with PayPal was the lack of enthusiasm for the latter to share with the partner so-called insights - information collected when servicing payments, which is often more expensive than the margin. Also, PayPal, which has become a serious financial brand that is not inferior to Mastercard and Visa, has shown capriciousness in developing policies for working with different countries. She was no longer very interested in messing with every little thing. While eBay, under pressure from Chinese competitors, is determined to attend to even the smallest.
Why this story? Obviously, eBay and PayPal were right in 2002. And no less right in 2015. And now they are right again. The world is changing, and with it transformed business models and competitive environment. In 1998, the P2P payment was a miracle, and PayPal could take any commission for it. And at the same time frankly rude to users (this is me from personal experience, if that). Today, taking money from a buyer in Singapore and sending it to Dubai is no problem at all. And PayPal, which bought Swift Financial in the summer of 2017, an online lending provider, is very different from itself almost 20 years ago. Modern PayPal seriously intends to compete with Apple Pay / Android Pay / WeChatPay and lend to small business. Seriously, why bother with low-margin translations on eBay?
Everything is changing too quickly, and modern “forever” in practice means “a year or two, but we'll see.” At the forefront is the product, which simply must correspond to the time. And then all these organizational moments are simply not important, they are entertained by shareholders and lawyers. The main thing is that the shareholders, in the course of their merrymaking, have enough caution not to throw out the product ...
At the end of last year, many experts in the field of investing in cryptocurrencies (now lurking) agitated for XRP. Say, “ripl” is a cool platform for instant money transfers on the blockchain with minimal transaction costs. In the world of bitcoin, they now cost about a dollar and a half, and here - count for free. Experts said that as soon as Ripple goes to the banks, the currency will soar to the skies.
And here's great news: the largest Spanish banking group, Santander, also having a business in Britain and Latin America, concluded an important agreement with Ripple. The group plans from day to day to launch an international payment system based on the blockchain, and will be based on the technology of the distributed registry according to Ripple. At the initial stage, a turnover of about $ 12.5 million is expected, which is quite a bit. But if Santander does manage to organize payments in “three clicks and in 40 seconds”, Ripple will have technology with proven market efficiency, which is now very rare.
This is the very news that the experts talked about. And how did XRP respond to it, which collapsed by 40% the previous week? You will not believe, but she continued to fall. And it only grew a little with the “squeezed out” bitcoin rate in a couple of days.
How is this possible? After all, it still came true, and Ripple really comes into the bank, and not the last one.
But the fact is that XRP is not exactly a cryptocurrency. Or not at all cryptocurrency, here as someone like more. Yes, there is Ripple technology with good market prospects. And there are XRP - tokens issued by Ripple and under its full control. 40% on the open market, 20% from the creators of Ripple and another 40% in the stash. How and when the last one is printed out (and whether it is printed out) - no one knows. XRP runs on the Ripple platform, but is not an integral part of it. She can't even pay for transactions. There is no decentralization characteristic of multiple * coins.
That is, buying XRP, the user does not have the opportunity to share the success of the platform. These are some ... chips. Maybe they will, maybe not. Here even the probability theory does not work. All in the will of firing chips.
And we again return to what we started from. Each time has its own ... features. In the late nineties, when eBay and PayPal entered into a partnership agreement, citizens, through funds, invested in everything that promised huge profits on the mysterious Internet. It seemed like a normal thing. But the idea of ​​buying some kind of digital chips of an incomprehensible nature would then seem too exotic. Today we know that the word “Internet” does not in itself guarantee a profit. But the capitalization of XRP on the morning of February 8 is almost $ 30 billion ...
We so want to believe in miracles that sometimes they happen. A question in a sign of a miracle, Habr.
One of the main topics on which participants of core conferences and columnists in the media break their spears - what form of cooperation with a FINTECH startup is optimal? Takeover or partnership? And adherents of each approach argue very convincingly. There is an opinion, it's time to put an end to this dispute. Because the right answer simply does not exist.
The financial world is changing too fast for the decision to be correct and unshakable. Let's look at the story with eBay and PayPal, unfolding before our eyes.
')
In 1999, a young but already very respectable eBay company listed on NASDAQ decided that it needed its own payment system. And she bought the service Billpoint, because it seemed safer and calmer. However, by that time, the lion’s share of the auctioneers used the P2P payments PayPal service that had just emerged, which was originally designed for instant transactions on Palm Pilot communicators (does anyone remember them at all?), But it was perfect for online auctions. In general, the P2P payments on the Internet in 1999 were a very cool innovation, which, despite the glitches and the very strange work of supporting PayPal, quickly brought the startup into the market leaders. eBay honestly tried to develop its service, but as popularity grew, PayPal first entered into a partnership agreement, and then in October 2002 bought the service for one and a half billion dollars. Billpoint was sent to the dustbin of history.
For almost 13 years, PayPal has been “its” eBay service, which, in general, suited everyone. But in early 2015, the company divorced. And up to the present, they have worked in the mode of exclusive partnership. Which again suited everyone. Suddenly out of the blue: eBay denies PayPal the exclusivity of payment service and enters into a contract with the Dutch company Adyen. PayPal will remain the eBay payment operator in the future, and a smooth migration to the Adyen platform will not end until mid-2020. And it is possible that eBay again decides to make a partner of its own unit.
Knowledgeable languages ​​say that the reason for parting with PayPal was the lack of enthusiasm for the latter to share with the partner so-called insights - information collected when servicing payments, which is often more expensive than the margin. Also, PayPal, which has become a serious financial brand that is not inferior to Mastercard and Visa, has shown capriciousness in developing policies for working with different countries. She was no longer very interested in messing with every little thing. While eBay, under pressure from Chinese competitors, is determined to attend to even the smallest.
Why this story? Obviously, eBay and PayPal were right in 2002. And no less right in 2015. And now they are right again. The world is changing, and with it transformed business models and competitive environment. In 1998, the P2P payment was a miracle, and PayPal could take any commission for it. And at the same time frankly rude to users (this is me from personal experience, if that). Today, taking money from a buyer in Singapore and sending it to Dubai is no problem at all. And PayPal, which bought Swift Financial in the summer of 2017, an online lending provider, is very different from itself almost 20 years ago. Modern PayPal seriously intends to compete with Apple Pay / Android Pay / WeChatPay and lend to small business. Seriously, why bother with low-margin translations on eBay?
Everything is changing too quickly, and modern “forever” in practice means “a year or two, but we'll see.” At the forefront is the product, which simply must correspond to the time. And then all these organizational moments are simply not important, they are entertained by shareholders and lawyers. The main thing is that the shareholders, in the course of their merrymaking, have enough caution not to throw out the product ...
“Banking” cryptocurrency XRP did not respond to the major Ripple deal with the banking group Santander
At the end of last year, many experts in the field of investing in cryptocurrencies (now lurking) agitated for XRP. Say, “ripl” is a cool platform for instant money transfers on the blockchain with minimal transaction costs. In the world of bitcoin, they now cost about a dollar and a half, and here - count for free. Experts said that as soon as Ripple goes to the banks, the currency will soar to the skies.
And here's great news: the largest Spanish banking group, Santander, also having a business in Britain and Latin America, concluded an important agreement with Ripple. The group plans from day to day to launch an international payment system based on the blockchain, and will be based on the technology of the distributed registry according to Ripple. At the initial stage, a turnover of about $ 12.5 million is expected, which is quite a bit. But if Santander does manage to organize payments in “three clicks and in 40 seconds”, Ripple will have technology with proven market efficiency, which is now very rare.
This is the very news that the experts talked about. And how did XRP respond to it, which collapsed by 40% the previous week? You will not believe, but she continued to fall. And it only grew a little with the “squeezed out” bitcoin rate in a couple of days.
How is this possible? After all, it still came true, and Ripple really comes into the bank, and not the last one.
But the fact is that XRP is not exactly a cryptocurrency. Or not at all cryptocurrency, here as someone like more. Yes, there is Ripple technology with good market prospects. And there are XRP - tokens issued by Ripple and under its full control. 40% on the open market, 20% from the creators of Ripple and another 40% in the stash. How and when the last one is printed out (and whether it is printed out) - no one knows. XRP runs on the Ripple platform, but is not an integral part of it. She can't even pay for transactions. There is no decentralization characteristic of multiple * coins.
That is, buying XRP, the user does not have the opportunity to share the success of the platform. These are some ... chips. Maybe they will, maybe not. Here even the probability theory does not work. All in the will of firing chips.
And we again return to what we started from. Each time has its own ... features. In the late nineties, when eBay and PayPal entered into a partnership agreement, citizens, through funds, invested in everything that promised huge profits on the mysterious Internet. It seemed like a normal thing. But the idea of ​​buying some kind of digital chips of an incomprehensible nature would then seem too exotic. Today we know that the word “Internet” does not in itself guarantee a profit. But the capitalization of XRP on the morning of February 8 is almost $ 30 billion ...
We so want to believe in miracles that sometimes they happen. A question in a sign of a miracle, Habr.
Source: https://habr.com/ru/post/348592/
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