These offerings are built around the launch of a new offering of APIs (not all of which are entirely new) aimed at making PayPal a ubiquitous mechanism for buying anything, anywhere and substantially increasing the types of business models PayPal can now support. For example, Adaptive Payments ideally will enable such fun as buying directly off of TV's from your remote control, buying via smartphones, kiosks at the mall, at restaurants, within a car (pay tolls with PayPal?), or anyplace or anything else where it is physically possible to enter a Paypal email address and password.
Paypal currently accounts for about $70 Billion dollars per year of the $30 trillion annual global spend. This represents about 15% of the total ecommerce market. Clearly eBay (PayPal's parent company) believes there is a lot of room for growth and additional vehicles of commerce to capture. They insist that cash is dying a slow death and our grandchildren won't know what it was like to carry around cash, and other types of paper currency (such as checks) are becoming obsolete. PayPal is banking on opening up their platform and payment networks to an army of developers, and that this will lead to a wave of new online innovation with PayPal payment mechanisms at the core. With 240 million accounts now on PayPal, 80 million of which are active, it is a difficult theme for online vendors to ignore.
At StrikeIron, we follow ecommerce developments closely because of our many complementary APIs to ecommerce systems like Paypal, including everything from sales tax rates APIs, address verificationglobal too), email verification, telephone number verification and enrichment, currency rates, and even the ability to send SMS messages and text-to-voice messages to landlines to let people know that packages should have arrived for example for a better customer experience. These are all necessary components for those wishing to create an optimized ecommerce transaction and the best possible user experience. Everything that drives more ecommerce to occur is ultimately driving more need for own Web-based ecommerce SOAP and REST services, so we do everything we can to make sure our own APIs are compatible with and what our customers are using, need, and want. Hence our interest in developments at PayPal.
The new platform is already being put to use as was showcased during the event at the keynote presentations. I really enjoyed seeing SAP's demonstration of their new adoption of Paypal for B2B applications (they now have a PayPal module within R/3), enabling invoices to be generated within SAP, and then payment to be remitted and received via a Paypal account - all in a few simple clicks.
Payments to and from the "Cloud" is a concept likely to succeed because it takes advantage of all of the things that make the Cloud itself advantageous, such as abstraction from the complexities of payment networks, no software or hardware investments, easy API interfaces, simple adoption procedures, and usage-based expenses rather than capital expenses. And of course, the easier it is for buyers to buy, the greater the chance that they will. There are competitors of course to PayPal, including Amazon with DevPay and Google Payments circling overhead, and not to mention probably hundreds of smaller guys trying to make a living on the buying and selling of others, and it is still an early market so a lot can happen of course.
But I think this new platform and set of APIs with the easy ability for developers to incorporate Paypal as a payment mechanism for a whole new array of payment collection points will be a big win for all of us in the space and everyone seeking new, creative ways to conduct business.
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