Paypal Looks to Crush Amazon’s Fledgling Payment Service 22 comments
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By Leena Rao
It looks like PayPal is rolling out a more flexible payments API called Adaptive Payments. We’ve obtained a confidential document, which is embedded below, explaining the details of the new system. Basically the API is designed to give developers full access to PayPal’s features, allowing them a lot more freedom in building applications which include the ability to accept and distribute payments.
Very similar to Amazon’s Flexible Payments Service (FPS), the Adaptive Payments API handles payments between a sender of a payment and one or more receivers of the payment. Adaptive Payments allows almost the same functionality as FPS. The new API lets developers become a payment aggregator, which we are told is something against PayPal’s current Terms of Service. Amazon’s FPS also lets developers aggregate payments. Moreover, Paypal’s Adaptive Payments has built in micropayments support, another feature of FPS.
Some of the offerings of Adaptive Payments are sure to be attractive to developers. In what PayPal calls “Chained Payments,” developers can create applications that enable a sender to send a single payment to a primary receiver who may keep part of the payment and pay other, secondary receivers with the remainder of the funds. For example, an application might be an online travel agency that handles bookings for airfare, hotel reservations, and car rentals. The sender sees only the travel site as the primary receiver. But that site could allocate the payment for its commission and the actual cost of services provided by other merchants. PayPal would deduct the money from the sender’s account and deposit it in both the primary travel site’s account and the secondary receivers’ accounts.
Adaptive Payments will also offer “Parallel Payments,” which would let a sender send a single payment to multiple receivers. An example of this type of application might be a shopping cart that lets a buyer pay for items from several merchants with one payment. The shopping cart would allocate the payment to the merchants who actually provided the items. PayPal would then deduct money from the sender’s account and deposits it in the receivers’ accounts.
It’s unclear what PayPal’s pricing plan will be for Adaptive Payments and if it will be competitive with Amazon’s FPS pricing. Amazon has slowly been rolling out its competition to PayPal over the past few years, launching Amazon Payments and unveiling the beta of FPS. It isn’t easy for Amazon to replace PayPal, but it is going after developers to become the preferred payment mechanism on the Web. Perhaps PayPal is starting to feel the heat from FPS, which allows much more flexibility than PayPal’s Direct Payments API. Now, with its Adaptive Payments API in the works, PayPal is about to strike back.
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This article has 22 comments:
I look forward to the second quarter financial results due out about the 21st inst. Should make interesting reading once the spin is peeled off.
Bottom line, "Don't be late to the Party". That would include you too...
Blockbuster literally engaged in "busting the block" by systematically putting in a store as close as possible to independent movie rental outlets and undercutting them, to intentionally drive them out of business.
Dirty dealings rather than fair competition.
NetFlix took this behemoth down a notch or two, didn't they?
I hope Amazon's system Buries PayPal !!!
PayPal is the only thing propping eBay up since Donahoe began systematically destroying their core auction business by screwing of eBay Sellers - the only ones who actually pay eBay and PayPal fees on the site.
eBay/Paypal has always been a follower and a copy-cat of the real leaders of the pack. Who is eBay today? Amazon? Overstock? A liquidator? How 'bout an over-bloated pig?
With JD still at the helm, this tugboat is sinking more and more everyday. Between selling on Bonanzle.com and eCrater.com, I've made more and kept more money instead of stuffing it in eBay's bottomless pockets.
Fear not the gobbling dealings of Paypal, Facebook's "Pay With Facebook" is going to eat them alive!
Link: www.businessinsider.co...
It is fiction.
www.businessweek.com/t...
"in the U.S., where PayPal is strongest, its share of online payments is just 12%. That proportion is in the single digits in Europe"
That is 88% in the U.S. Do Not use PayPal, and over 90% in Europe Do Not use PayPal.
An analyst pumping PayPal stock because it might crush Amazon FPS, is akin to someone pointing out the fight between two barracuda. In a shark tank.
"Ah, arrogance and stupidity all in the same package. How efficient of you. "
Londo Mollari, Babylon 5
Great analogy of Blockbuster and Netflix!
Remember the Titanic? The began slowly and gathered unstoppable momentum! I genuinely believe this to be this to be the direction of Paypal.
Not only will there be business classes on how to destroy a billion dollar business, pointing directly to John Donahoe.
The utter idiocy of a board of directors who sat there and paid him do it!
----------------------...
I decided to pick up a particular golf club (Nickent 5DX Hybrid) and checked both venues. I paid $119 for a new one on eBay, with free shipping. The cheapest price on AMZN was $199.00 for the same club with free shipping. eBay has it all over AMZN on a price basis , and with more free shipping, it's only a matter of time before eBay takes market share form AMZN.
Hate to break the news to you but:
"eBay traffic declined in April and May 2009 both consecutively and year-over-year, according to data provided by Nielsen. eBay page views fell 6.8% in April 2009 compared to the previous month, and dropped another 7.9% in May 2009. eBay page views for May 2009 were down 32% from a year ago and were down 40% from four years ago in May 2005."
article here:
www.auctionbytes.com/c...
Please turn out the lights when you finish shopping eBay!
"....and with more free shipping, it's only a matter of time before eBay takes market share form AMZN..."
This just goes to show you the mentality of the eBay trolls.
SHIPPING IS NOT FREE!!! Shipping is incorporated into the price of the item! There's no deal there! Knock knock - anybody home? eBay just takes more of the sellers hard earned profits (again) via FVF - double/triple dipping I believe would be the correct terminology.
Just read this post too - enjoy:
...By the time John Donahoe took the helm of eBay in Q1 2008, he opted to “aggressively change our product, our customer approach and our business model.” In a futile effort to compete with Amazon and Google, eBay leadership essentially stripped whatever remaining fun existed out of its marketplace....
Link: www.techcrunch.com/200.../
It's Viral now....;)
What nice changes did ebay make to selling ??
I haven't heard what they are / anything that is going to bring me back.
I just wish they haven't brainwashed the buyers that "transacting off ebay is unsafe and against ebay policy" - because I sure would love to entertain more offers off ebay and totally avoid the Pay Pal extortion deal along with the doubled ebay fees.
to me. eBay will thrive, with or without Bob C's and Wake-ups support. LOL
@eBay+++ who stated:
"...Iook for eBay to make a strong rebound in the 2nd half..."
That's pretty funny considering they've gone on record saying they are "recession proof"...LOL! Now this recession-proof company needs a rebound?
Good luck on your rebound, eBay ;)
"I just sold an item from my garage"
Finally unloaded the old Big Wheels tricycle, eh?
Better hope they don't SNAD you :)
Wake-Up!, I've got 11 yrs on eBay (buying & selling) under my belt, and I would guess that you have several too, but according to the genius eBay+++, we don't know what the hell we are talking about!
Funny stuff indeed!
"Wonderful delivery and packaging. Super nice to deal with!!!!"
And here is a copy/paste of my feedback, with my id x'ed out, believe it or not , I just don't care.
xxxxx ( 1355)
100% Positive feedback
Member since: Oct-03-97 in United States
And best of all, I just closed another a high dollar deal through eBay, but off eBay. The buyer made an offer of my full asking price by sending me an "Ask the seller a question" with his email address.
Many buyers, excluding you, have wised up to the new , and f'd up eBay.
So much for your failure theory!
So just move along son, and post only of the things that you actually know!
"The Item was exactly as stated and the delivery was very quick."
I'm 100% positive there too, and sales are growing daily.
Gee doesn't take much for ebay to suck you into their propaganda.
Printing off a bar code label doesn't make one iota of difference to me - it's all the time I spend prior - packing ad nauseum.
And ebay has the nerve to tell us to "eat" the shipping on top of all the time that was already spent, in just getting ready to ship.
How about the ebay condition that the seller is responsible for the item untill the buyer receives it, even though the buyer didn't elect to go for the insurance that is offered.
I am not Sears - I can not absorb non-delivery scams that Pay Pal makes it so easy for buyers to pull on the sellers.
I rather not sell than to run the risk of having someone pull that one.
I'm sure eBay will have someone out to do your packing soon, just hold on. Also, I hear their going to take full responsibility all items, so full free to pack sh!t.
Best of luck with your Sales...