PayPal Theory of the Future

1
PayPal Theory of the Future

• That doesnt work today.

Alan Green (atgreen_at_ucsd.edu) CSE 91 Ramamohan
Paturi University of California, San
Diego, November 28, 2005
2
History

• Original Idea person-to-person payments
• Exponential Growth
• Crux of the Situation
• Bought out by EBay, Inc.

3
Business Model

• Two conflicting theories
• Small Customer Base, Return On Satisfaction
• Large Customer Base, Satisfaction Disregarded
• Frozen Accounts
• Potential Fraud
• Terms of Service Agreement
• Pooled Interest

4
What does that leave us?

• Not much.
• Most of PayPals problems are standard throughout
  much of todays digital monetary delivery
  systems.
• Though, of note, PayPal recently acquired
  Verisign, which makes PayPal basically todays
  only mainstream digital monetary delivery system.

5
EBay will only be accepting PayPal as its
preferred form of payment as of 2006.

• Sellers may not solicit buyers to mail cash.
  Sellers may not ask buyers to send cash through
  instant cash transfer services (non-bank,
  point-to-point cash transfers) such as Western
  Union or Moneygram. Finally, sellers may not
  request payment through online payment services
  not listed in this policy.
• Finally, sellers may not request payment through
  online payment services not listed in this
  policy.