PayPal Spreads Its Wings
After thirteen years of mutual, but harmonious marriage, eBay will finally set free the stagnant PayPal in hopes that it will catch swift currents in recapturing market interest. CEO of eBay, Mr. Donahoe, stated that the board of directors intended for PayPal to freely pursue its own strategy without the constraints and stress of being tied with eBay (Seetharaman, Mukherjee 2014), despite critics undermining the company director’s decision as “reacting to outside pressures” (Merced, Sorkin 2014).
Apple’s highly anticipated keynote a few weeks ago revealed its latest debut in the e-commerce market: ApplePay. As competition tightens around the necks of the e-payment markets, all eyes are on PayPal to stand up to the technology giant. PayPal is one of the few companies that has the existing infrastructure and management to give ApplePay a run for its money. Without a doubt, the release of ApplePay has certainly pushed eBay directors to come to a hastily resolution to the dilemma.
Furthermore in order to revitalize its service, PayPal is in desperate need of connections with global, e-commerce titans like Google and Amazon, yet the constraints of being under the roof of eBay has stunted its ability to expand markets. Regardless of where the true motive for separation lies, it is certain that PayPal now has the room to stretch and commandeer sectors not attainable before. PayPal’s success will be determined on its ability to maneuver its wings in the strong headwinds to come.
Merced, M.J., & Sorkin A.R. “EBay Does About-Face in Spinoff of Paypal Backed by Ichan”. New York Times, Sep 30. 2014. Web. Sep, 30. 2014.
Seetharaman, D., & Mukherjee S. “EBay follows Ichan’s advice, plans PayPal spinoff in 2015”. Reuters, Sep 30. 2014. Web. Sep, 30. 2014.