PayPal Options after Split from eBay
PayPal has split from its partner for years, eBay. Now Carl Icahn has many options of where to take his newly single company. Possible options for the online and mobile payment system are to buy up smaller competitors operating within their area of expertise, or look for a merger with a larger company.
Soon to come, Apple Pay will offer assumed competition to long time giant within secure internet transactions eBay. With such competition on the horizon, Icahn is looking to be aggressive in his coming decision. Freedom will be to PayPal’s advantage with the options to provide services to eBay competitors, one example being internet retail giant, Amazon. The prospect of being able to provide service to multiple companies makes PayPal stronger in comparison to the new Apple payment method.
Analysts are speculating mobile payments to spike to $58 billion by 2017 from last years numbers, grossing around $1 billion. With that type of increase there is much room to jockey for between payment firms. The showdown between the two heavy weights is looming near and there should be some serious moves made before Apple fully launches Apple Pay.
Where will PayPal go with their new found freedom? A buyout may be in the works as bigger fish are looking at PayPal with big eyes. Google, Mastercard, Microsoft, and Visa have all attempted payments systems with varying results. The history of acquisitions within these firms, Google and Microsoft in particular, points to possible offers being made in the near future.
PayPal is a sound investment for any firm, they will collect no debt from eBay and will leave with a decent amount of cash from the separation. The coming months will be very interesting as we watch what will come of the new opportunities across multiple companies and industries.
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