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PayPal (EBAY) will reportedly take on rapidly-growing Square by offering a rival credit-card...

PayPal (EBAY) will reportedly take on rapidly-growing Square by offering a rival credit-card swiping device that will charge a slightly lower fee (2.7% vs. Square's 2.75%). The move is another sign of PayPal's aggressive push into mobile and offline payments, leveraging a variety of solutions. However, in this instance, the fact Square has already signed up over 1M merchants will make things difficult. (previously)
Comments (2)
  • yv204
    , contributor
    Comments (165) | Send Message
     
    The devil is, of course, in the details. In this case, design details. There are several companies already offering a lower-cost alternative to the Square's plug-in widget, one of the competitors being Wells Fargo-owned Propay. Propay offers a 2.5% fee on most transactions (and the fee could be even lower, depending on transaction volume). The reason Square is winning merchant loyalty hands down is that the company's device looks like something designed by Apple (and is, in fact, carried by Apple stores), the fee structure is extremely simple, and the resulting funds get dropped into the merchant's bank account practically overnight. I am assuming this will not be the case with Paypal. So, big threat to Square? Probably not so much.
    14 Mar 2012, 04:53 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    Good points. Creating a quality end-to-end solution (Square's apps also need to be included here) is easier said than done. That said, PayPal is probably a more formidable challenger than Square's other rivals, given its brand, resources, and huge merchant base.
    14 Mar 2012, 05:13 PM Reply Like
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