As Anon and Brian view PayPal’s ability to execute quite differently I think I am closer to Brian’s view. No doubt large companies are crap at integration, but if a company does integrations and then over time, that company grows, you have to give the acquisition strategy some credit for the growth.
This is a large lego block to a bigger strategy. I view it more simply though. How long would it take and what would it cost to connect to 130+ carriers, well it turns out Zong is much cheaper.
Now you have true mobile connections. Remember as big as PayPal’s mobile volume has been it is still basically what you do on the web, just on the phone. Now with Carrier Billing, they finally move off of VISA/MC rails.
To the core of your question, what is the effect on the retail payments space. Short term is minimal as a lot of carrier bills are paid by CC or Debit card, still on the VISA/MC rails. And don’t forget Zong/Boku et.
Are at 20-30% rates, so too expensive for much beyond virtual goods and such. Longer term is that PayPal has more weapons in their Arsenal to fight as Google, Amazon and Apple begin their surge in this exciting market space.
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