PayPal unveiled a new technology this week that truly gives retailers something to talk about; a system that allows larger e-commerce companies to transfer large amounts of money between their respective accounts. Approximately 120 businesses were invited this past Wednesday to witness the unveiling of this new system to see firsthand how it works, and so far the reactions within the business community have been almost solely positive. This move will allow PayPal to compete against traditional financial institutions for a number of corporate needs.
New PayPal Features
One feature that particularly stands out is the new PayPal Card, which operates exactly like a modern debit card. Merchants will be able to swipe it at other local businesses to meet the everyday needs of operations and there will be no additional terminals required to process transactions. The PayPal Card will also meet the needs of businesses that conduct phone and Internet transactions as well, so it is an extremely versatile answer for a variety of today’s business needs.
PayPal will also be unveiling other options such as instant coupons that can be used at featured merchants (sent by smartphone), an easier storage database to organize and monitor spending, and a payment installment system that will allow users to pay for purchases over a number of months. All of these enhancements can also be linked to a checking account, a credit card, or other payment options to simplify every aspect of banking on the run.
PayPal’s Online Dominance
While PayPal is currently the only serious contender within the online money-transfer genre, an expansion into real-world sectors only made sense for this corporation. Acquired by online-merchandise giant eBay in 2002 for $1.5 billion, the merger led to almost instant success with over 50% of eBay’s total users making their purchases through this technology. This move almost instantly eliminated the competition from rival payment technologies in Yahoo! PayDirect and BillPoint, both of which are no longer active. Today, PayPal boasts a user-base made up of over 230 million accounts in 190 markets all over the world.
PayPal and eBay’s Stock Explosion
The recent expansion news has shown excitement among investors with eBay’s stocks shooting up 6.8% on the NASDAQ on Thursday to close at $32.19. Part of this frenzy can be linked to the unveiling of new point-of-sale technologies that will allow off-site sales solutions for retailers. Both PayPal and eBay serve as a prime example that even in a down economy, consumers are always looking for new options on how to spend their money.