Quote:
Originally posted by D_Nell
Lets do it! Lets show EBAY what they are missing out on. If you just target the Adult Industry and the Online Casino Industry we could take over all those clients and gain new ones!
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The card company cartel is just becoming too hard to deal with. It is already one of PayPal's biggest problems.
There have been a lot of mandated changes to PayPal's systems because of the companies like the Quasi Cash option so they can flag it as a cash advance (which by they way you cant select if you are not US/Canada).
Besides what we all like to think, adult is just not big enough. I remember seeing what IBill were processing in a year listed in the announcement when they were bought and PayPal was already doing 10 times that and not profitable.
And for those that dont think that PayPal will stop doing adult, I would think again. Ebay still has around 60% of payments for auctions being made by cheque or money order. If they can tightly integrate PayPal into the process and get that extra 60% they will be doing very nicely.
Also, it will probably allieviate alot of card issuer troubles as you could then argue that they are not agregating merchant accounts which is what both Visa and Mastercard are trying to stamp out at the moment without running into Anti Trust issues. As I have said before, here in Australia and in alot of other countries you couldnt operate a CCBill/IBill/PayPal without breaching card scheme rules. Now you may get away with not having your merchant account terminated it by tying things up in courts on antitrust related issues but it isnt cheap to do that.
This transaction solves PayPals problem of having to try and become profitable while fixing Ebays Billpoint stuffup. There is no motivation that I can see for Ebay to want to own a PayPal type offering and keep it seperate.
Jayson