EBay CFO: PayPal "not being constrained"

Mar 5, 2014 Full story: MarketWatch

EBay Inc. [ebay] chief financial officer Bob Swan said Wednesday that the company's PayPal payments business "is not being constrained" because it's part of a larger company.

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Since: Nov 13

Sydney, Australia

#1 Mar 5, 2014
Notwithstanding that I am otherwise a vociferous critic of eBay, this time I have to agree with Johnny Ho that eBay should not let go of “PreyPal”. Without its existing integrated relationship with the eBay marketplace, the value of the clunky “PreyPal”, as a stand-alone, would be reduced greatly (eBay actually generates ~30% of PayPal new users with no customer acquisition costs for PayPal and half of PayPal's profits come from transactions on eBay where “PreyPal” is well integrated and virtually mandated); and, worse still, without “PreyPal”, the value of the eBay marketplace would be reduced by some 40%(“PreyPal” currently contributes ~42% of eBay’s profits)…

I hate to admit it, but for once Johnny Ho has got it right; Carl Icahn may well be right on some other eBay matters but with respect to “PreyPal” he clearly has no understanding of the value of the inextricable and mutually supporting nature of the incestuous relationship between these two clunky, disingenuous, unscrupulous, commercial entities, and in particular, the precariousness of PayPal’s clunky business model …

Notwithstanding the amount of disingenuous noise that constantly emanates from the eBay Dept of Spin,“PreyPal” is a clunky middleman riding, in the main, at the pleasure of the retail banks, precariously on the backs of the retail banks existing payments systems, and “PreyPal” has little more than one percent (~1.1%) of the world’s total payments business (and even then much of its payers’ funds are sourced via MasterCard/Visa); the “bankcards”, MasterCard and Visa, have ~90% of this market between them and Amex has another ~8%, and both MasterCard and Visa have recently launched their own professional mobile/plastic POS/online digital wallets … Hello "MasterPass"; goodbye clunky "PreyPal"—it has not been nice knowing you …

The reality is that the clunky PreyPal’s “best before” date is fast approaching; as a “stand-alone” operation that “best before” date would simply arrive even sooner …

“Never ever hire an MBA; they will ruin your company.”—PayPal founder, Peter Thiel

The ugly reality of eBay Inc.:
eBay's crooked auctions marketplace ... http://bit.ly/11F2eas
eBay Motors (UK sampling): Auction Fraud Galore ... http://bit.ly/I2gTEU
eBay Motors XSS Redirect Scams in Action (video)... http://bit.ly/1d46NvE
eBay/Gumtree / Barclays Bank Motors Scams … http://bit.ly/1c9Uwck
eBay's clunky, unscrupulous "PreyPal" ... http://bit.ly/UVXx53
The ongoing joke of eBay Inc.... http://bit.ly/YvxFEg
Fun quotes from the eBay executive suite ... http://bit.ly/12xvzyA
On Facebook ... https://www.facebook.com/groups/formerebaysel...

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