A new market is about to erupt, with many competitors in the race for a major share. Within two years applications that make mobile phone payments will boom. These applications could potentially end the need for your wallet because most monetary transactions could be done from your cell phone. This boom is similar to the PC boom of the Eighties' and Nineties'. The situation currently at Paypal is similar to the situation that existed at IBM. IBM was a mainframe manufacturer and started branching out to the PC market. Similarly, Paypal is an online payment company branching out to mobile payments. A second similarity exists: just as Microsoft was a major winner in the PC boom because it provided the operating system that made many of the computers work, I believe that a major winner in this upcoming mobile phone payment boom will be a financial company that makes these transactions actually happen. Also, as was the case of the PC boom, the biggest winner will probably not be the company with the best application, but will be the company in the right place at the right time.
Link to Article Read
PayPal is one of those larger businesses that makes it by, solely because of its huge presence and utter lack of competition. Even if there were any competition, nobody would even know about it. Many policies have turned people off from PayPal recently, just one of which being not allowing donations to WikiLeaks through their site.
ReplyDeleteA well-organized business with the right model could definitely step up to to the plate right now and give PayPal the competition it will ultimately get.
Why not us? Weirder things have happened.
ReplyDelete