PayPal is potentially one of the first modern “out of the Blue” experiences many bankers have had to face in recent years. For establishing a viable cash replacement with reasonable privacy and account abstraction through the use of an email address, PayPal successfully innovated around the global FIs while they were all busy “testing” and “piloting” cyber-money, digital cash and how they could maintain “top of wallet” status, mind and wallet-share with loyalty, CRM solutions and gimmicky attempts to put lipstick on a pig. After all, behind the scenes, it’s all the same old thing. Multi-day delays to access money, restrictions out the wazoo and the so-called “benevolent entanglement” of the once altruistic turned publicly traded Global Payments Networks and Brands.
I personally love having fellow David’s around to fight the incumbent Goliath Associations. We LOVE PayPal. They are a fantastic client and partner of ours and we welcome the renewed spirit of innovation and consumer oriented thinking they bring to the market. They’ve practically single-handedly revived and unified the SMB and SOHO markets in what was a highly fragmented, specialized, risky and therefore expensive specialized set of markets.
But have you tried their mobile solutions? I have, along with a myriad others. And let me tell you, not to pick on any one of them, they all leave much to be desired.
Despite all its successful innovations, disruptions and disintermediation, PayPal can rightfully be proud of their 67 Million accounts on file. But why are they stagnating and declining in certain markets?
Why did they exit China and Japan after dismal launches with great fanfare and hope?
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