PayPal announces "Customer First" initiative

|By:, SA News Editor

PayPal (EBAY +1.1%), no stranger to well-publicized complaints from disgruntled merchant partners and payers, has unveiled a multi-pronged initiative called Customer First it hopes will yield higher user satisfaction.

Among other things, PayPal is adjusting its risk models to result in fewer payments to trustworthy merchants being held up - an exec refers to this as "[catching] more sharks and less dolphins" - and is implementing a "no fault construct" for small buyer complaints regarding counterfeit goods. The latter move will result in PayPal absorbing $2.5M/year in claims.

PayPal also says it's giving employees more autonomy to tailor policies for individual customers, and is asking execs to "spend a week on the front lines at our call centers to hear and deal with issues first hand." PayPal claims its existing efforts have led to a 40M Y/Y drop in customer issues thus far in 2013.

PayPal chief David Marcus has been busy shaking up how the online payments giant does business since taking its top job in March '12. The latest moves come with PayPal facing competition from upstarts such as Stripe, and perhaps soon Facebook.