Chapter 1150 – Mobile Paynts and Paypal
The four banks’ representatives were shocked. Paypal is also Feng’s company?!
Paypal is not developed by eBay. It is developed by another company, but their first big client is eBay. eBay had thought of acquiring Paypal but was stopped by Kirilenko.
This is because Paypal was acquired by Feng Yu.
eBay had planned to spend 300 million USD to acquire Paypal. Still, the shareholders of Paypal felt Paypal is worth at least 600 million. Although Paypal is not listed, the estimated value of the company is about 100 million USD.
eBay’s acquisition bid failed because of the price differences. Feng Yu imdiately ask Ralph to negotiate with Paypal and to acquire it at all cost.
In the end, Feng Yu bought out Paypal with 600 million USD. He gave the two founders of Paypal 4% shares and let them continue to manage Paypal. Feng Yu also gave the developnt team 2% shares of the company and got them to continue to support Paypal.
With Paypal, why does Feng Yu still want to develop a mobile paynt platform?
There are two reasons for this. First, the mobile paynt platform is different from Paypal. The second reason is to avoid being targeted by the whole industry. When a company grew into a monopoly, it will be targeted. For example, Microsoft was almost forced to be split, and Yahoo had to be split into Yahoo US, Yahoo Asia, etc.
Rather than being forced to split, Feng Yu might as well create a competitor for himself. This way, his company will not be charged for monopolizing the market. Both companies can better take over the whole third-party paynt platform market.
In Feng Yu’s previous life, Paypal and eBay’s direction is different from the mobile paynt platform. Paypal is equivalent to an internet credit card, while a mobile paynt platform is like an internet ATM card.
Paypal had started as an internet bank and slowly developed into a virtue credit card. Mobile paynt platform is designed to act as guarantor initially and slowly developed into a virtue ATM.
Paypal charges high transaction fees, and it is their main source of profits. The mobile paynt platform focused on transaction history and big data. This is more important than charging transaction fees, but it will encroach these banks’ profits.
That’s why in Feng Yu’s previous life, Paypal had developed faster than the mobile Paynt platform overseas because of the suppression from the banks. The banks knew the importance of transaction data and will not let any other companies get it easily.
Paypay is more inclined to the buyers and allows buyers to stop transactions during disputes. Mobile paynt platform sides with the seller. Amazon is using the B2C model, and it is Feng Yu’s company. He needs to protect the seller’s interest and prevent instances where the buyer refuses to pay after purchase.
Paypal is more suitable for the Westerns who like to spend their future money. Simultaneously, a mobile paynt platform is more suitable for Asians who prefer not to spend on credit. Even before Feng Yu’s rebirth, many Chinese do not own any credit cards in their lifetis. Many people in Europe and the US will apply for credit cards once they reach the legal age to apply for one.
Credit cards can stimulate consur spending, but it can also easily form a debt crisis. One person doesn’t need to have an inco to get a credit from Bank A, get Bank B’s credit card to repay his credit card debts in Bank A, and then get Bank C’s credit card to repay Bank B’s debts.
Borrow and repaynt on ti can increase an individual’s credit rating, and the person’s credit limit can be increased. Thus, this person can don’t need to work and have money to spend.
But if any problems occur in any part of this cycle, this person will be bankrupt. Once this person becos bankrupt, his debt will beco a bad debt, and if one or two people do this, it’s fine. But once more than one or two million people do this, it will form a financial crisis.
That’s why Paypal and mobile paynt platforms are very different, and both companies can enter into cooperation in the future but will never rge.
Of course, in Feng Yu’s previous life, mobile paynt platforms are limited to China. The transacted currency is RMB, and Paypal is primarily using USD. That’s why Paypal is more successful than mobile paynt platforms.
But after mobile paynt platforms entered the US, it becos successful. The biggest advantage of mobile paynt platforms is its low transaction fees. The mobile paynt platforms bear part of the charges, and the banks waived a portion.
With the transaction data in hand, the mobile paynt platforms are not worried they have no chance to make money. Moreover, the mobile paynt platform has a seven-day clearance, which allows the platform to have enough cash flow. This is like using their custors’ money to invest and make money.
With Feng Yu around, and the mobile paynt platform cannot get investnt returns of more than the transaction fees, they should just close down!
Another big difference between a mobile paynt platform and Paypal is Paypal sellers can withdraw cash imdiately. In contrast, a mobile paynt platform requires the buyer’s confirmation. If not, the seller has to wait for seven days, and buyers can also delay their paynts.
These two types of third party paynt platform still have so other differences. Of course, both have similarities, like they are both online paynt services and are targeting similar custor groups.
Feng Yu will not explain the details to these banks’ representatives. These banks are willing to accept Paypal as they will get high returns, but mobile paynt platform will be taking away a huge chunk of their profits.
“Mr. Feng, we can help Paypal to develop faster, but we feel the mobile paynt platform is not suitable.” The representative from Arican Express said.
“Not suitable? Why is it not suitable? I will still pay you all the transaction fees. We will have lots of users, and it’s beneficial to your banks’ developnts too. That’s why you all should give us a discount on the transaction fees.”
“Mr. Feng, this mobile paynt platform will infringe the users’ privacy. We think this is not right.”
Infringe the users’ privacy?! Bullshit! You all are talking as if your banks did not make use of your custors’ data.
These banks just want to keep all the transactions to themselves and not let others know about it.
“What if I allow you all to invest in this mobile paynt platform in the future?” Feng Yu will allow them to own a minor stake in this platform in the future for their support.
“It’s too early to talk about that. If we can invest in it now, we might consider.” Citibank’s representative replied.
The Citibank’s representative wants the company’s shares and beco one of the bosses of this platform.
“Who do you all think you are?! All of you can leave now! There are other banks in the US!”
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