Published at 20th of January 2021 01:55:05 AM
Chapter 1150: 1150
Chapter 1150 – Mobile Payments and Paypal
The four banks’ representatives were shocked . Paypal is also Feng’s company?!
Paypal is not developed by eBay . It is developed by another company, but their first big client is eBay . eBay had thought of acquiring Paypal but was stopped by Kirilenko .
This is because Paypal was acquired by Feng Yu .
eBay had planned to spend 300 million USD to acquire Paypal . Still, the shareholders of Paypal felt Paypal is worth at least 600 million . Although Paypal is not listed, the estimated value of the company is about 100 million USD .
eBay’s acquisition bid failed because of the price differences . Feng Yu immediately ask Ralph to negotiate with Paypal and to acquire it at all cost .
In the end, Feng Yu bought out Paypal with 600 million USD . He gave the two founders of Paypal 4% shares and let them continue to manage Paypal . Feng Yu also gave the development team 2% shares of the company and got them to continue to support Paypal .
With Paypal, why does Feng Yu still want to develop a mobile payment platform?
There are two reasons for this . First, the mobile payment platform is different from Paypal . The second reason is to avoid being targeted by the whole industry . When a company grew into a monopoly, it will be targeted . For example, Microsoft was almost forced to be split, and Yahoo had to be split into Yahoo US, Yahoo Asia, etc .
Rather than being forced to split, Feng Yu might as well create a competitor for himself . This way, his company will not be charged for monopolizing the market . Both companies can better take over the whole third-party payment platform market .
In Feng Yu’s previous life, Paypal and eBay’s direction is different from the mobile payment platform . Paypal is equivalent to an internet credit card, while a mobile payment platform is like an internet ATM card .
Paypal had started as an internet bank and slowly developed into a virtue credit card . Mobile payment platform is designed to act as guarantor initially and slowly developed into a virtue ATM .
Paypal charges high transaction fees, and it is their main source of profits . The mobile payment platform focused on transaction history and big data . This is more important than charging transaction fees, but it will encroach these banks’ profits .
That’s why in Feng Yu’s previous life, Paypal had developed faster than the mobile Payment platform overseas because of the suppression from the banks . The banks knew the importance of transaction data and will not let any other companies get it easily .
Paypay is more inclined to the buyers and allows buyers to stop transactions during disputes . Mobile payment platform sides with the seller . Amazon is using the B2C model, and it is Feng Yu’s company . He needs to protect the seller’s interest and prevent instances where the buyer refuses to pay after purchase .
Paypal is more suitable for the Westerns who like to spend their future money . Simultaneously, a mobile payment platform is more suitable for Asians who prefer not to spend on credit . Even before Feng Yu’s rebirth, many Chinese do not own any credit cards in their lifetimes . Many people in Europe and the US will apply for credit cards once they reach the legal age to apply for one .
Credit cards can stimulate consumer spending, but it can also easily form a debt crisis . One person doesn’t need to have an income to get a credit from Bank A, get Bank B’s credit card to repay his credit card debts in Bank A, and then get Bank C’s credit card to repay Bank B’s debts .
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Borrow and repayment on time can increase an individual’s credit rating, and the person’s credit limit can be increased . Thus, this person can don’t need to work and have money to spend .
But if any problems occur in any part of this cycle, this person will be bankrupt . Once this person becomes bankrupt, his debt will become a bad debt, and if one or two people do this, it’s fine . But once more than one or two million people do this, it will form a financial crisis .
That’s why Paypal and mobile payment platforms are very different, and both companies can enter into cooperation in the future but will never merge .
Of course, in Feng Yu’s previous life, mobile payment platforms are limited to China . The transacted currency is RMB, and Paypal is primarily using USD . That’s why Paypal is more successful than mobile payment platforms .
But after mobile payment platforms entered the US, it becomes successful . The biggest advantage of mobile payment platforms is its low transaction fees . The mobile payment platforms bear part of the charges, and the banks waived a portion .
With the transaction data in hand, the mobile payment platforms are not worried they have no chance to make money . Moreover, the mobile payment platform has a seven-day clearance, which allows the platform to have enough cash flow . This is like using their customers’ money to invest and make money .
With Feng Yu around, and the mobile payment platform cannot get investment returns of more than the transaction fees, they should just close down!
Another big difference between a mobile payment platform and Paypal is Paypal sellers can withdraw cash immediately . In contrast, a mobile payment platform requires the buyer’s confirmation . If not, the seller has to wait for seven days, and buyers can also delay their payments .
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These two types of third party payment platform still have some other differences . Of course, both have similarities, like they are both online payment services and are targeting similar customer groups .
Feng Yu will not explain the details to these banks’ representatives . These banks are willing to accept Paypal as they will get high returns, but mobile payment platform will be taking away a huge chunk of their profits .
“Mr . Feng, we can help Paypal to develop faster, but we feel the mobile payment platform is not suitable . ” The representative from American Express said .
“Not suitable? Why is it not suitable? I will still pay you all the transaction fees . We will have lots of users, and it’s beneficial to your banks’ developments too . That’s why you all should give us a discount on the transaction fees . ”
“Mr . Feng, this mobile payment platform will infringe the users’ privacy . We think this is not right . ”
Infringe the users’ privacy?! Bullshit! You all are talking as if your banks did not make use of your customers’ data .
These banks just want to keep all the transactions to themselves and not let others know about it .
“What if I allow you all to invest in this mobile payment platform in the future?” Feng Yu will allow them to own a minor stake in this platform in the future for their support .
“It’s too early to talk about that . If we can invest in it now, we might consider . ” Citibank’s representative replied .
The Citibank’s representative wants the company’s shares and become one of the bosses of this platform .
“Who do you all think you are?! All of you can leave now! There are other banks in the US!”
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