PayPal refund changes

[Dpeck100]

FYI

Paypal has a market cap of 122 billion and EBAY is 35 billion.


PayPal has revenue growth estimated at just under 18% for the next 12 months.


How on earth did someone come to the conclusion this company would be out of business in two years?????

[Fballguy]

Originally Posted by Dpeck100

FYI

Paypal has a market cap of 122 billion and EBAY is 35 billion.


PayPal has revenue growth estimated at just under 18% for the next 12 months.


How on earth did someone come to the conclusion this company would be out of business in two years?????

People tend to overreact to things here.

I do a lot of online shopping outside of ebay, for just about everything and I can't remember the last time I bought from a site that didn't accept Paypal.

What I don't understand is why they still offer the F&F discount. That seems like it would be low hanging fruit for them. If they're worried about fee income, why do they allow us to use their service free of charge?

[Yastrzemski Sports]

Maybe I’m wrong. Maybe PayPal will be fine. They are a publicly traded company. For any public company shrinking business can be a disaster. I would think that the loss of a big client like eBay and their revenue stream could lead to a major restructuring at least. I don’t think many companies could lose that much and not have a big impact. But maybe they’ll be better than ever.

One thing is for sure - as stated before they are throwing us a big middle finger when they should be thanking us for our continued business now that we have a choice.

[Dpeck100]

Originally Posted by Yastrzemski Sports

Maybe I’m wrong. Maybe PayPal will be fine. They are a publicly traded company. For any public company shrinking business can be a disaster. I would think that the loss of a big client like eBay and their revenue stream could lead to a major restructuring at least. I don’t think many companies could lose that much and not have a big impact. But maybe they’ll be better than ever.

One thing is for sure - as stated before they are throwing us a big middle finger when they should be thanking us for our continued business now that we have a choice.

I personally would think if someone was going to make a bold statement like a business is going under in a few years that they would at least go look at the fundamentals because they are available online to help form their opinion. PayPal made 2.06 billion in the last 12 months as of December 31st and those numbers are even higher today. It is easy to use and reliable and the market opportunity for them is growing not shrinking. They did 15.45 billion in revenue for 2018 and the estimates for 2020 are 21.16 billion. You don't find stocks that are making 52 week highs after a 20% correction in the SP 500 that aren't doing well. People might not like the changes but business will move forward because there isn't a better alternative and they have significant brand loyalty.

[Santo10Fan]

Originally Posted by Yastrzemski Sports

Maybe I’m wrong. Maybe PayPal will be fine. They are a publicly traded company. For any public company shrinking business can be a disaster. I would think that the loss of a big client like eBay and their revenue stream could lead to a major restructuring at least. I don’t think many companies could lose that much and not have a big impact. But maybe they’ll be better than ever.

One thing is for sure - as stated before they are throwing us a big middle finger when they should be thanking us for our continued business now that we have a choice.

I think this could help the "better" thesis, because Venmo has gained so much traction in the past 3 years. It's a verb for many people under the age of 30. Stealing from eBay sellers in the last years of its deal must be Paypal's way of recouping that .98% mentioned by the author.

https://www.fool.com/investing/2018/...-with-ven.aspx

[itslarry]

No refunds on venom.
It's like Facebook plus a bank, very annoying.

[polakoff]

Originally Posted by Yastrzemski Sports

Maybe I’m wrong. Maybe PayPal will be fine. They are a publicly traded company. For any public company shrinking business can be a disaster. I would think that the loss of a big client like eBay and their revenue stream could lead to a major restructuring at least. I don’t think many companies could lose that much and not have a big impact. But maybe they’ll be better than ever.

One thing is for sure - as stated before they are throwing us a big middle finger when they should be thanking us for our continued business now that we have a choice.

You also have to remember that Paypal doesn't pay folks interest, but does earn interest on the money it holds. I don't know numbers (and maybe there's a way to find this information) but if they are holding $1b worth of money for users, not providing them with interest, but earning interest on that money themselves, that's a revenue stream that will not dry up.

[Yastrzemski Sports]

I use PayPal every day. I get paid through them for several thousand dollars every month. Most of the money is held there. I use that money to pay others. I pay for all of my postage through them. I pay for items because I have funds sitting there. I contribute a good amount of business both buying and selling every day. When PayPal leaves eBay I may never use it again. I have no reason to. So, for me, my activity goes to zero or very little when the change takes place. They won’t be holding any more of my money. I will keep an account open in case someone wants to pay that way but outside of eBay it’s infrequent. But that’s just me.

Originally Posted by polakoff

You also have to remember that Paypal doesn't pay folks interest, but does earn interest on the money it holds. I don't know numbers (and maybe there's a way to find this information) but if they are holding $1b worth of money for users, not providing them with interest, but earning interest on that money themselves, that's a revenue stream that will not dry up.