PayPal (EBAY -0.7%) customers will soon be able to pay for digital goods from their Xbox 360...

PayPal (EBAY -0.7%) customers will soon be able to pay for digital goods from their Xbox 360 (MSFT +0.5%) gaming consoles, according to a report from EBAY]'s developer conference. The key to catching a healthy portion of the large market for digital goods is to become the "preferred payment choice" for in-product (out of the browser) buying - where 90% of virtual goods are bought. PayPal's advantage: 100M users already in the system, enabled to buy with a click.

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  • Philip Cohen
    , contributor
    Comments (1537) | Send Message
    PayPal, PreyPal …


    Both John Donahoe and Scott Thompson are simply delusional if they think that PayPal can save eBay by becoming even a minor threat to the existing banks/Visa/MasterCard payments systems at traditional Point-of-Sale—the idea is pure science fiction. (Beam me up Scotty!)


    The real question is, when are the world’s various "banking" regulators going to finally do something about over-sighting this most amoral, unprofessional, unregulated, clunky “financial” operator that not only acts like a bank but is in reality a money gouging arm of the Ho’s “eBafia”?


    Even though PayPal clearly offers banking-type services (ie, holding users’ funds in non-prudentially regulated and non-FDIC insured banking-type accounts), PayPal is mostly only registered in some places not as a bank nor as a provider of credit but only as a “money transmitter” (like Western Union), and indeed PayPal itself has even claimed that they “are not a payment network”, and there is a grain of truth in that claim because it is a fact that most (but not all) of their activities facilitate the transmission of funds by riding on the back of the banks’ existing payments processing systems.


    In fact, the only thing creative about PreyPal has been their founding use of users’ unique email addresses as identifiers for online payment transactions. PreyPal is otherwise no more than a blood-sucking parasite riding on the back of, and in the main cannot function except via, the banks’ existing payments processing systems.


    Regardless, outside of its mandated use on whatever will ultimately be left of the Donahoe-stagnated eBay Marketplace, PreyPal (and any other third-party payments processors) will undoubtedly be consigned to the history books by the retail banks/Visa/Mastercard once those players get their “online” act together. There is nothing surer than the sun will rise in the morning.


    Both eBay and its ugly daughter PayPal are most amoral, unprofessional organisations. eBay, among other things, has knowing and criminally, facilitated shill bidding fraud on eBay’s naïve and trusting auction buyers. And what else can be said about PreyPal that any PreyPal merchant does not already know? It’s a most “clunky,” unprofessional operation.


    Having said that, it’s possible that the merchant-hated PreyPal can survive by becoming the merchant account “provider of last resort” for those very small or unscrupulous merchants unable to get a professional merchant account from their own bank—Oh, hang on, hasn’t PreyPal always been just that, and charged their users accordingly?


    eBay is a Knowing Criminal Facilitator of Shill Bidding Fraud on eBay Auctions: Case Study #4:


    PayPal claims that PayPal Is Not a Payments Processor!


    And, from along the way, a compilation of (mostly inane) quotes from eBay executives:


    Enron / WorldCom / eBay / PayPal / Donahoe: Dead Men Walking.
    14 Oct 2011, 02:09 PM Reply Like
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