PayPal eBay separation will create benefits which may promote mobile payment technology

eBay has recently announced that the company will separate from Paypal. This way, the two new companies will be able to capitalize on their own respective growth opportunities.

Although for more than a decade, eBay and PayPal have mutually benefited from being part of the same company, the board states that the eBay – PayPal tandem, beyond 2015, is less advantageous in terms of strategy and competitiveness. Thus, the company claims that splitting will favor rapid growth of both, increasing the value of their assets and improving earnings of all shareholders. Currently, PayPal is one of the fastest-growing digital payment providers, with more than 152 million active registered accounts growing 15% the last year quarter and increasing its income by 19% over the previous period.

PayPal eBay separation will create benefits which may promote mobile payment technology

 The company has also become a leader in the development of mobile payment technology. PayPal recently launched its modality «One Touch» that allows consumers to link their PayPal accounts to the mobile device in order to complete a purchase just by tapping on the device.

It has been also suggested that a broader strategy may include the use of wireless Near Field Communication (NFC) technology that is incorporated into new iPhones, which effectively turns smartphones into payment tap devices that can be widely used.

PayPal is fully localized in 26 currencies. It is available in 203 markets worldwide and has relationships with over 15,000 financial institutions. Undoubtedly, its global reach and growth will be enhanced with the expansion of the incorporation of biometric payment systems.


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