Tuesday, October 11, 2005

Ebay buys Verisign's Payment Division

eBay is buying the payment division of Verisign. Most of us know it as the PayFlow product line. It's an interesting move that would allow eBay to deliver a consolidated API that includes both normal credit card processing and PayPal merchant services. I don't really have a feal for how merchants will respond to this.

It seems like the brick-n-mortar stores with an online presence could not care less about PayPal, so I think that might be a difficult sale. On the other hand, eBay merchants and lots of small online businesses seem to really like the PayPal system.

Personally, I think that if PayPal gets much closer to being a bank, they seriously need to be regulated like one and be forced to provide the same consumer protections that a bank would normally provide.

I also don't understand the argument for using PayPal for larger merchants based on cost. Some people seem to think it costs less to offer PayPal on their websites. I don't really see that much difference in price.

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