Paypal Case Study
MKTG306 Paypal case Study
Domenic Santoro 41748638
1. What is the value proposition that Paypal offers consumers? How about merchants?
PayPal, the trusted leader in online payments, enables buyers and businesses to send and receive money online. PayPal has over 100 million member accounts in 190 countries and regions. It's accepted by merchants everywhere, both on and off eBay. It provides a way for both sellers and purchasers to shortcut the time consuming process of processing payments; mailing cheques, money orders, waiting for cheques to clear. Paypal allows merchants to avoid the difficulty and expenses of setting up the capability of using credit cards to process payments and other forms of payments. Paypal allows both merchants and consumers to use their email addresses to pay for items. Paypal also provides a lower interest payment for its use than that charged by credit cards.
2. What are some of the risks of using Paypal when compared to credit cards and debit cards?
As Paypal stores all your credit card details under your email address there is some risk factors as the security of the Paypal account. It is much easier to hack an email address than to hack a network securing your credit card details. In saying this there is minimal security surrounding your Paypal in terms of a single password could allow a person to access all your details for your credit card. In saying this credit cards have a much better data security system and money protection. Another risk with Paypal is that once funds are withdrawn, they cannot be recovered, whilst credit cards can. There is also the threat of credit card fraud as there is not real checking process of the credit card on Paypal as it is used to just help the exchanging of funds, rather than a company securing funds, which is done by credit cards. Another issue that must be noted is the unreliable consumer data. That is Paypal does not require any identification of the seller so it can provide difficult in
Domenic Santoro 41748638
1. What is the value proposition that Paypal offers consumers? How about merchants?
PayPal, the trusted leader in online payments, enables buyers and businesses to send and receive money online. PayPal has over 100 million member accounts in 190 countries and regions. It's accepted by merchants everywhere, both on and off eBay. It provides a way for both sellers and purchasers to shortcut the time consuming process of processing payments; mailing cheques, money orders, waiting for cheques to clear. Paypal allows merchants to avoid the difficulty and expenses of setting up the capability of using credit cards to process payments and other forms of payments. Paypal allows both merchants and consumers to use their email addresses to pay for items. Paypal also provides a lower interest payment for its use than that charged by credit cards.
2. What are some of the risks of using Paypal when compared to credit cards and debit cards?
As Paypal stores all your credit card details under your email address there is some risk factors as the security of the Paypal account. It is much easier to hack an email address than to hack a network securing your credit card details. In saying this there is minimal security surrounding your Paypal in terms of a single password could allow a person to access all your details for your credit card. In saying this credit cards have a much better data security system and money protection. Another risk with Paypal is that once funds are withdrawn, they cannot be recovered, whilst credit cards can. There is also the threat of credit card fraud as there is not real checking process of the credit card on Paypal as it is used to just help the exchanging of funds, rather than a company securing funds, which is done by credit cards. Another issue that must be noted is the unreliable consumer data. That is Paypal does not require any identification of the seller so it can provide difficult in