PayPal Wants to Jump on Apple's Mobile Payments Bandwagon
Last week the Wall Street Journal reported that Apple was developing a mobile payments service that could compete with rival services offered by companies like Google and eBay subsidiary PayPal .
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Since: Nov 13
#1 Jan 31, 2014
This story is a joke, right?
Amazon/Apple/Google/Square/Who ever Payments
Online or at physical point-of-sale, via plastic or mobile phonefrom the merchants point of viewall these non-bank providers suffer the same severe handicap that eBays clunky PayPal suffers: none have interactive access to buyers funds in retail banking debit accounts, nor to retail banking credit accounts as do have the MasterCard and Visa bankcards; their only access to funds is as retail bank Credit Card Merchant Account operators (which is what PreyPal claims to be when it wants to appear not to be operating as a bank in its own right) via their own retail banker (Wells Fargo in the case of PreyPal).
Even if any of these middlemen make use of direct debits via the ACH system (as PreyPal prefers to do to more cheaply access buyers funds), the access is not interactive: there is no immediate acceptance of the debit by the bank nor any guarantee that, the following day, the bank wont reverse the debit due to an insufficiency of funds; direct debit via ACH is simply not a suitable medium for physical point-of-sale transaction payments; the only safe route for point-of-sale transactions (credit or debit) is via a retail bank Merchant Account with its interactive linking to the retail banking system
These pretenders are all parasitic middlemen, an extra superfluous layer that, in the main, rides precariously on the back of the retail banks existing systems; they make their money out of the difference between what the banks/MasterCard/Visa charge them and what they then charge their merchant customers; therefore, their services, invariably, are going to be dearer, or are unlikely to be cheaper; anyone that thinks otherwise has been drinking too liberally of the disingenuous nonsense that continually flows from the eBay Dept of Spin
PreyPal, however, is unique in that it operates a pretend bankthe unlicensed bank they have to hold onto merchants receipts cash flow, and the bank they dont have when the banking regulator comes sniffing around. That PreyPal manages to skirt wholly around US banking regulation while operating this clunky, unregulated, non-FDIC-insured,pretend bank, frankly, defies belief; possibly its due to the same bureaucratic laziness/corruption that allows eBay to knowingly and calculatedly facilitate demonstrable, massive, blatant, auction fraud on the consumers of the world
Regardless, if any of these middle-men players think that they are going to take other than micro-fractions, if any, of the payments market away from the MasterCard and Visa bankcards, I think that they are dreaming, or possibly they have accompanied Johnny Ho on one too many his many hallucinating trips with Alice down the rabbit hole to Wonderland
For buyers,digital wallets undoubtedly are the way of the future for payments, and with the recent arrival of the professional digital wallets from MasterCard and Visa, all these pretenderswith the exception of where they are effectively mandated/integrated into an online marketplaceare now effectively redundant
And, with respect to physical point-of-sale transactions by such pretenders (Square excepted, as it offers a hardware answer to a particular problem), can I simply invite readers to, next time they visit The Home Depot, ask a cashier how Pay Here With PayPal is goingLOL bit.ly/UVXx53
Hello "MasterPass"; goodbye clunky "PreyPal"it has not been nice knowing you ...
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