The value proposition it offers is that your money can be received via e-mail quickly without paying a big commission as it is with credit cards and with certainty that this is transferred by a large institution for the when the merchant receives the notification via mail and money already in your account that can transfer money to another account, and if necessary transfer to the account of another person, one of the advantages that this system has besides being very fast, this operation is less heavy and you do not have to be waiting to get money because, as is the case of check and credit cards money sometimes delayed, another advantage is that here you do not restrict the use of debit card because in many cases only let you use debit, otherwise the leave use credit cards to purchase items over the internet is more expensive for sellers that the able to use PayPal.
On the otherwise on the side of consumers as already mentioned is more convenient and cheaper for them to use PayPal because cost is a little cheaper than using your credit card because consumers do not pay for the use direct from your account the only way in which it is charged to transfer money to foreign accounts, currency exchange or new financial products. So for these reasons both the merchant and the consumer are benefiting because both are spared most of the money they make transfers via credit card and more safely and quickly and that within that can make transfers, payments and shopping via the Internet without giving the credit card number to prevent fraud so that customers can feel more secure and does not charge if the purchase is authorized. Therefore the consumers have more benefits knowing that their cards can not be cloned or fraud may occur through merchants. 2.
What are some of the risks of using PayPal when compared to credit cards and debit cards? One of the great risks that counts is that you can ensure a hundred percent reliability of fraud because in the world of internet hackers exist even though one does not show them information they might know it as payment information is sent mail giving all necessary information including personal data to commit fraud as well as mentioned in the book, since most of the time can be given that the consumer never send money to the seller and backwards as the seller says he never received. Another risk is that you never receive a payment receipt for the purchase and that this in turn cannot be claimed.
Another risk is that the PayPal’s protections for consumers are weaker than what credit card companies are required to offer as these you can return you your money well as mentioned in book: with PayPal, you may or may not receive your money back, depending on whether PayPal can receive its money back and a host of other conditions. 1 Therefore the large difference between each is the risk of fraud exists and is unable to claim from PayPal if unlike the cards, besides being used for the same reasons. But putting PayPal pro advantage of working your way could not allow the cloning of the cards the way they store their data using one card instead if they run the risk of being cloned.
Another big difference is that unlike PayPal with credit cards when you get past the sign and calling card check at the time that the signature matches to avoid the use a person who is the owner or the card, while PayPal if anyone could register with them using the card of another person without anyone knowing because registration is not in person but through the computer, therefore one could buy whatever by PayPal without them realizing it so the card holder could not claim. So PayPal should implement a way they could prove that that register is the owner of the card so you can reduce fraud and there is more risk differences between PayPal and credit cards. 3. What strategies would you recommend that PayPal pursue in order to maintain its growth over the next five years?
Continue to provide the same benefits that so far only had the most publicity the competition as is the case of Google’s checkout system mentioned in the book despite these if they provide card number and other information and ask you not to fill egistration, these have a large following, so what we could do PayPal, is creating new marketing methods so you can drive more people to continue using this method to implement new promotions and additional benefits for both consumers and for traders, trying to always be the best and so their growth by having more sponsors such as eBay. You can also still use the method that a client if you make your payment via PayPal to be that the other does not is a good strategy so that they can create an account and thus also be known more among the people. Importantly it should continue with the same type of security used as this gives more confidence to the person using it knowing that their data will be released to anyone and still have the same degree of reliability among others.
Also the use of new types of technologies to be used in PayPal is important for growth because it provides better service and better quality for using it because you can be known in most parts of the world. Actually the most people tend to make Internet purchases and sales so that’s one of the great advantages with which PayPal would have to keep growing, because they may show better security with the use of their card and PayPal can be offer better benefits making the job easier for both buying and selling for as this reduces the use of cards through the internet. 4. Why are cell phones networks a threat to PayPal’s future growth? As mentioned in the book one of the biggest changes is the implementation of payments by phone as is the case of ATT and Verizon, since these are implemented with the company Obopay to transfer money via cell phone.
In this case if much reduced growth in PayPal because cell phone technology has reached and all people, this means that like all people, or if not most cell loaded with anywhere, can make payment directly from there without having to enter a website is with PayPal, and thus further reduce the use of credit cards and thus make it easier for us. Therefore the followers of such payments would feel more comfortable paying from your phone through a computer. One of the things you can do PayPal so that its growth is not impaired is integrated into a cellular company in different parts of the world so we can continue to implement new strategies as we had mentioned in the previous question, that the growth of this non – is hindered by this new implementation.
But this does not mean that PayPal no longer grow unless the contrary is opening new doors for this company along with eBay and other partners to implement better ideas for implementing a cellular phone to them mainly competition PayPal because as was mentioned before PayPal will ensure confidentiality with your payment systems as a pro do it when the cell one has no certainty that this was going to reach out to others, therefore if it joins PayPal mobile phone companies that in turn could implement better forms of security and well able to prevent fraud, which in turn would be more frequent if not done with due care when making payments via mobile telephone. Although if it is a big threat to growth PayPal also has its drawbacks as it could be not properly implement linking it to the proper service could be provided via the Internet and that trade is hereby higher than cellular, but in this time another of the great advantages is that most phones now come with added internet and help with PayPal’s growth is not reduced.
References: 1. Case Study 5-70 paragraph 3 Kent C. Laudon E-Commerce 2009 “PayPal has Company” Page 5-67 – 5-71