Why PayPal's Future Is Cooperation, Not Competition

Credit Cards, Ant Financial, e-Yuan, prepaid cards

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Pay Pal’s recent participation in the Goldman Sachs Technology and Internet Conference is discussed in an article on Madison.com. The focus is how PayPal found out that working with rather than against the established payment ecosystem stalwarts is making them more successful. Perhaps this is a “lesson learned” that can help new entrants. PayPal CEO Dan Schulman provided his explanation why he believes partnerships with organizations like Discover, FIS, Mastercard and Visa were “transformative” for his company:

PayPal’s relationships with some of its new partners have historically been frosty. PayPal’s position was especially tenuous because it held that uncertain middle ground in the industry where it was seen as a disruptive force by legacy companies in the payment industry but an entrenched incumbent by newer fintech players.

Since PayPal began making these deals, if Schulman is to be believed, the company’s perception has changed within the industry, and it’s now seen as someone to work with, not against. Schulman even went as far to characterize PayPal’s recent conversations with financial institutions as “warm and friendly.”

The full presentation form the conference can be found here

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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