Thursday, January 29, 2004
Paypal profits may affect the regulatory future of e-money ...
"PayPal, the payment transactions unit of eBay Inc., reported revenue of $132.6 million for the fourth-quarter ended Dec. 31, up 77.5% from $74.7 million in the year-earlier period. For the full year, PayPal had revenue of $436.7 million, up 85% from $236.6 million in 2002. [...] Most of PayPal?s revenue is from the fees it charges merchants for payment transactions."
We may conclude (contrary to common belief here in the Netherlands...):
1-new payment mechanisms can make a profit,
2-the new retail payments market via new media is international,
3-Paypal is by far the unbeatable first-mover in the new media payments / e-money domain.
Paypals profits show that taking a Dutch approach to a new payments debate may not be the proper way forward. Most likely the number of Dutch customers at Paypal is bigger than the number of Dutch customers at Way2Pay, Minitix, Tootz, Wallie-card etc. altogether. Still, the recent report of our Ministry of Economic Affairs hardly recognizes the role and significance of Paypal as (soon to be) Europe's largest e-money issuer and institution....
Assuming that history will repeat itself, we should not be surprised when Paypal Europe starts using the available EU-legal instruments to correct wrongdoings in the EU-market of e-money. Let's not forget that only some 20-odd years ago Visa were doing the same to enter the protective EU-markets.
I think it would be good to remember that Paypal has a US background and is drilled to understand and respect the regulatory rules in the market. This US-background also means that they will not hesitate to sue other private or public organisations that do not live up to the same rules and that distort the level playing field.
So Paypal will at some point in time undoubtedly demand that any electronic money issuer will abide with e-money rules and with competition rules as to overcharging the merchant. Given both its own resources and those of E-bay, the other players in this market may be in for a bumpy regulatory ride.
Posted by Simon on 17:41 | link
EZ: "Meer betalingen moeten online"
Posted by Simon on 11:41 | link
Monday, January 26, 2004
Posted by Simon on 14:13 | link
Thursday, January 22, 2004
Commentary on single legal payments framework effort of Commission
Posted by Simon on 10:30 | link
Monday, January 12, 2004
E-money license for Contopronto ... soon also Paypal Europe
Meanwhile, Ben Putter informed me that Paypal is preparing to introduce PayPal (Europe) Ltd., a company incorporated in the United Kingdom, as the service provider for PayPal customers in the European Union. It is anticipated that PayPal (Europe) Ltd. will begin operating in February 2004, subject to receiving authorisation from the Financial Services Authority (FSA) in the UK. As a consequence European customers will have to sign up with Paypal Europe or end their affiliation with Paypal.
Posted by Simon on 13:45 | link