paypal-buyer-protection

Paypal – setting up to compete harder than ever with 180 days buyer protection and credit lines for merchants

Paypal is extending its buyer protection program to 180 days post purchase. At the delight of customers and the misery of sellers who must allocate funding to their percentage point allocations on returns and cash pipelines.

Recognition must be made to the fact that Apples tie up with credit cards providers has Paypal worried in the mobile payment business. Most credit card supplier that will be available on the Apple payments program currently offer 60 days of chargebacks. Credit Card providers are worried that Paypal is setting its buyer protection program up as a significant competitive edge in the consumers mind and share of wallet.

If Apples payment network generates enough volumes it is likely to trigger a push from Apple to require its credit card partners to offer similar buyer protection timeframes down the line. Nonetheless, Paypal continues to pave the way with innovative and creative methods to win with consumers.

We remain long on Ebay stocks currently, which currently owns Paypal. The rumoured coming Paypal split from Ebay into its own IPO will be one of the largest IPO that we are likely to witness next year. Ebay will continue to retain a major controlling stake which will reflect positive on its balance sheet.

Additional rumours are hitting the news that Paypal is considering to offer credit facilities to its merchants with high rating and historic volumes, which is going to the see the Paypal expand out of prepaid business model into low risk diversified payment gateway. This will fuel immense growth and an additional competitive edge to Paypal.

We are excited to see this IPO float in early 2015.

 

 

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