Auction giant eBay's emerged as the stealth investor in tiny PHP shopping engine specialist Magento. eBay has invested $22.5m in Magento in return for a 49 per cent stake in the four-year-old company. eBay made the investment in March 2010 but the name of Magento's backer was kept secret until a recent eBay analyst event where …
I just read a few days ago somewhere...
... that another dotcom bubble has just begun to build up. Couldn't agree more.
Sounds like my tweet the other day ;p
PreyPal in B&M: Simply laughable
“PayPal has hired a new Vice President for Retail and Prepaid Products to help bring PayPal offline and into traditional retail stores.”
Why would any merchant in the “off-line” world want to use PayPal? PayPal is a clunky, unprofessional, transaction-mediation-lacking, buyer-biased, fraud-facilitating, non-bank-supported, poor imitation of a real payments processor.
The fact is that the risk management involved in payments processing can never be effectively satisfied without the support of the financial institutions (banks) at either end of every transaction.
If I was Mastercard or Visa—who have such bank support—I would not be in the least concerned about PayPal encroaching into the off-line world. The merchant that naively offers PayPal deserves all the fraud they will undoubtedly be exposed to.
Conversely, If I was PayPal, I would be terrified of those same bank-supported credit card companies introducing a simpler “online” process based upon the unique email address identifier which all net bank using customers have already supplied their bank.
When the credit card companies do eventually get off their butts and introduce such a simplified system, PayPal, probably along with its ugly mother, eBay, will quickly disappear into the history books.
Enron / eBay / PayPal / Donahoe: Dead Men Walking.