PayPal is surfing the wave of online payments with revenues growing steadily: up 48% to $304.4 million in the fourth quarter compared with a year ago. The problem is that PayPal needs to expand beyond its core eBay's auction site users to keep generating more profits. Most recently, PayPal generated 23% of parent eBay's total $1.3 billion quarterly revenue.
PayPal executives acknowledge they need to broaden the appeal of their service. But Forrester Research analyst Sucharita Mulpuru says some retailers are leery of associating themselves with a brand that is so closely intertwined with eBay's online-flea-market roots. In part because of that heritage, PayPal "doesn't feel like a sophisticated financial system like a VISA or MasterCard" to many retailers, says Ms. Mulpuru.
Because of this vulnerability, two new players, Google ("GBuy") and GreenZap, are beginning to ramp up their online payment services through testing with online retailers. GBuy will feature an icon posted alongside the paid-search ads of merchants, which Google hopes will tempt consumers to click on the ads (while GBuy lets the consumer's credit card information remain stored on Google).
GreenZap is attempting to compete against the big kid on the block, PayPal, by offering better value to its members through the introduction of "WebCash."
WebCash vs Cash
WebCash can be used as a way to pay for your GreenZap transaction fees, as well as a unique way to pay for part, or all of, products being sold at GreenZap Stores where hundreds of online merchants are offering thousands of brand name products and services.
You may also use WebCash on eBay® or Yahoo Auctions®, and send or receive WebCash between you and your community. The only difference between cash and WebCash is that WebCash can only be used, as the name says, on the Web. Browse GreenZap Auctionz on eBay.For collecting some free WebCash on GreenZap, sign up at: http://coachthee.greenzappers.com
To listen to an interview by Barry Goss with Alex Sonkin, president of GreenZap, on the subject of PayPal versus Greenzap at: http://manifestlife.com/audios/alex-sonkin.html
Sources: "PayPal Prepares for a Challenge From Google" The Wall Street Journal, February 6, 2006 and GreenZap.com
