The business world is proving that it has just about as much potential for drama as the best (or worst…depending on how you looks at it) reality TV, as the ongoing battle between eBay and minority shareholder Carl Icahn heats up. Icahn is calling (among other things) for eBay to spin off PayPal in an IPO, but eBay has fired back, stating that the company has no interest in divesting itself of the online payment service.
What lies behind Icahn’s demands is PayPal’s aggressive pursuit of the position of top dog in the Global E-Commerce Market, which is projected to grow at a CAGR of 13.54 percent over the next four years. All drama aside, this kind of growth means that the pressure is on for companies like PayPal to offer the most convenient and safest ways to pay in both the digital and real-world marketplace, a challenge PayPal has taken up with gusto.
And it’s no wonder PayPal has been and continues to be one of the key vendors in the market. It’s the granddaddy of online and mobile payment, and it’s been synonymous with e-commerce right from the start. Recent numbers speak for themselves— In 2013 PayPal reported 143 million active registered accounts, and US$27 billion in mobile payments made.
According to senior TechNavio researchers, “increasing internet penetration, adoption of advanced technologies and strong network connectivity are the three major drivers affecting the e-commerce market globally, and any company seeking to enter and thrive in this market has to be ahead of the curve on all of these.”
This is where PayPal has certainly succeeded. The company has consistently evolved, from its humble beginnings in 1998 as a Web 1.0 technology to its current status as a world leader in online payment. PayPal offers a huge range of online payment solutions for both individuals as well as businesses.
These include, but certainly aren’t limited to, mobile apps for payment from smartphones, advanced point of sales systems for businesses and even the innovative PayPal Here, an app and card reader for smartphones that allows businesses to process credit card payment from anywhere without the need of a POS terminal.
PayPal execs seem to understand that in the e-commerce market, convenience is key. Customers want to make purchases with a quick click of a button or tap of a phone, and businesses want to be able to receive payment quickly and efficiently. Money has gone digital and the battle between Icahn and eBay over PayPal just serves to illustrate exactly how significant companies like this will be as the e-commerce market continues to grow over the next few years.
For more information, view our Global E-Commerce 2014-2018 Market report.
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