Mobile Payment Competition Largely Nonexistent for PayPal (EBAY), Square
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Price: $107.87 -0.12%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.3%
Revenue Growth %: +11.9%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.3%
Revenue Growth %: +11.9%
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eBay (Nasdaq: EBAY) is moving higher Monday following positive commentary on its PayPal unit.
Bloomberg said today that smaller competitors in the mobile payment arena are willing to lose a little bit of money at the start in order to win business from PayPal and privately-held Square. Largely, the efforts are falling on deaf ears.
In addition, venture capital is drying as the field becomes more saturated. From VC mobile payment startup investments of $370 million in the first-half of 2012, the number fell to $92 million for the same period this year. By comparison, PayPal and even Google (Nasdaq: GOOG), with its Google Wallet, have invested billions in development of mobile payment platforms, with Google still not seeing a lot of success with its effort.
Another negative for smaller firms is not effectively screening business. From a typical default rate of under 1 percent in the industry, most startups are seeing something 2 to 3 times as much.
The market for mobile payment transactions is set to rise 44 percent this year to $235.4 billion, according to recent data from Gartner. Merchant purchases, money transfers, and bill payments are all included in the figure.
Shares of eBay are modestly positive early.
Bloomberg said today that smaller competitors in the mobile payment arena are willing to lose a little bit of money at the start in order to win business from PayPal and privately-held Square. Largely, the efforts are falling on deaf ears.
In addition, venture capital is drying as the field becomes more saturated. From VC mobile payment startup investments of $370 million in the first-half of 2012, the number fell to $92 million for the same period this year. By comparison, PayPal and even Google (Nasdaq: GOOG), with its Google Wallet, have invested billions in development of mobile payment platforms, with Google still not seeing a lot of success with its effort.
Another negative for smaller firms is not effectively screening business. From a typical default rate of under 1 percent in the industry, most startups are seeing something 2 to 3 times as much.
The market for mobile payment transactions is set to rise 44 percent this year to $235.4 billion, according to recent data from Gartner. Merchant purchases, money transfers, and bill payments are all included in the figure.
Shares of eBay are modestly positive early.
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