ebay announced Tuesday will split payment service PayPal

Source: Internet
Author: User
Keywords Ebay paypal is beneficial to
Tags abstract apple blog clear code company development development path

Abstract: Lead: U.S. Science and Technology blog Re/code today that ebay announced Tuesday will split payment service PayPal. Comments that the split after the PayPal will be able to choose their own future development path, and solve the recruitment and equity incentive issues. The following is the article

Lead: US tech blog Re/code today, ebay announced Tuesday that it will split payment service PayPal. Comments that the split after the PayPal will be able to choose their own future development path, and solve the recruitment and equity incentive issues.

The following is the full text of the article:

PayPal has not gone gracefully, but ebay has decided to split the PayPal next year, bringing new life to the latter.

ebay announced in Tuesday that it would split PayPal into an independent listed company. There are still many unanswered questions about ebay's plan, but one thing is clear: PayPal will step up hiring and deal with fierce competition from start-ups like Stripe and apple giants.

Prior to ebay's decision to split PayPal, one of the biggest concerns in the industry was that PayPal might not be able to find the right successor to the former president, David Marcus (Daivd Marcus), if it was unable to secure PayPal's independent status. In Tuesday, ebay announced that the industry's respected American Express executive Dan Schulmann Dan Schulman will be the president of PayPal and the future CEO. This will help PayPal stabilize the executive team and reassure outsiders.

It is not clear whether Shulman is willing to take up the position without a commitment to independence. However, the industry has previously told Re/code that a number of potential candidates are unwilling to accept such arrangements.

The hiring dilemma also affects lower-level employees. According to pay industry insiders, despite last year's revenue reached 6.6 billion U.S. dollars, and the annual growth rate reached 20%, but in recent years, PayPal is no longer the top talent want to join the company. This is partly because, after 12 years of being integrated by ebay, PayPal is no longer seen as an innovator.

Previously, ebay has tried to explore its own way to solve recruitment problems. ebay acquired Marcus ' Zong in 2011, and spent another 800 million dollars late last year buying Braintree. This is a mobile application payment platform with a team of talented people.

However, independent PayPal may find its own solution. As a start-up company, PayPal will be able to issue its own shares, using equity incentives to recruit and retain talent. Direct voice in corporate governance can also help attract top talent.

With the increasing competition in the payment industry, all these issues are more urgent than ever. In mobile apps, Apple pay has become a real threat to PayPal. If Apple decides to extend the payment function to a common web site, PayPal will have a bigger impact.

Stripe, a pay-processing start-up, is a direct competitor to Braintree, which has signed a partnership agreement with Twitter, Facebook and Alipay. PayPal's other competitor is Amazon. The company's entry into the cheap credit card reader market will hit a real-store collar. Google is also exploring the technology. Although some of the previous projects failed, Google still has a lot of money to try.

Although the break-up with ebay solves many problems, the biggest problem remains. If PayPal is still the basis of ebay's online market payment function, then two companies must sign an agreement to work closely together. Like other payment services, PayPal may need to pay for a concession on ebay. It is not clear how much PayPal needs to pay for such cooperation, but the relationship between the two companies will be very important. In response to the active investor Icahn Carl Icahn earlier this year, ebay said ebay's revenue contribution to PayPal was more than 30% and its profits were more than 50%.

The split PayPal may also be the target of other companies ' acquisitions. Google has long been seen as a possible acquirer, and the likelihood of such acquisitions will increase further in the future.

In any case, the spin-off from ebay will give PayPal the element that has long been missing: the right to choose the path of development.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.