<strong>Chapter 1150 – Mobile Payments and Paypal</strong>


    The four banks’ representatives were shocked. Paypal is also Feng’spany?!


    Paypal is not developed by eBay. It is developed by anotherpany, but their first big client is eBay. eBay had thought of acquiring Paypal but was stopped by Kirilenko.


    This is because Paypal was acquired by Feng Yu.


    eBay had nned to spend 300 million USD to acquire Paypal. Still, the shareholders of Paypal felt Paypal is worth at least 600 million. Although Paypal is not listed, the estimated value of thepany is about 100 million USD.


    eBay’s acquisition bid failed because of the price differences. Feng Yu immediately ask Ralph to negotiate with Paypal and to acquire it at all cost.


    In the end, Feng Yu bought out Paypal with 600 million USD. He gave the two founders of Paypal 4% shares and let them continue to manage Paypal. Feng Yu also gave the development team 2% shares of thepany and got them to continue to support Paypal.


    With Paypal, why does Feng Yu still want to develop a mobile payment tform?


    There are two reasons for this. First, the mobile payment tform is different from Paypal. The second reason is to avoid being targeted by the whole industry. When apany grew into a monopoly, it will be targeted. For example, Microsoft was almost forced to be split, and Yahoo had to be split into Yahoo US, Yahoo Asia, etc.


    Rather than being forced to split, Feng Yu might as well create apetitor for himself. This way, hispany will not be charged for monopolizing the market. Bothpanies can better take over the whole third-party payment tform market.


    In Feng Yu’s previous life, Paypal and eBay’s direction is different from the mobile payment tform. Paypal is equivalent to an inte credit card, while a mobile payment tform is like an inte ATM card.


    Paypal had started as an inte bank and slowly developed into a virtue credit card. Mobile payment tform is designed to act as guarantor initially and slowly developed into a virtue ATM.


    Paypal charges high transaction fees, and it is their main source of profits. The mobile payment tform focused on transaction history and big data. This is more important than charging transaction fees, but it will encroach these banks’ profits.


    That’s why in Feng Yu’s previous life, Paypal had developed faster than the mobile Payment tform overseas because of the suppression from the banks. The banks knew the importance of transaction data and will not let any otherpanies get it easily.


    Paypay is more inclined to the buyers and allows buyers to stop transactions during disputes. Mobile payment tform sides with the seller. Amazon is using the B2C model, and it is Feng Yu’spany. He needs to protect the seller’s interest and prevent instances where the buyer refuses to pay after purchase.


    Paypal is more suitable for the Westerns who like to spend their future money. Simultaneously, a mobile payment tform is more suitable for Asians who prefer not to spend on credit. Even before Feng Yu’s rebirth, many Chinese do not own any credit cards in their lifetimes. Many people in Europe and the US will apply for credit cards once they reach the legal age to apply for one.


    Credit cards can stimte consumer spending, but it can also easily form a debt crisis. One person doesn’t need to have an ie to get a credit from Bank A, get Bank B’s credit card to repay his credit card debts in Bank A, and then get Bank C’s credit card to repay Bank B’s debts.


    Borrow and repayment on time can increase an individual’s credit rating, and the person’s credit limit can be increased. Thus, this person can don’t need to work and have money to spend.


    But if any problems ur in any part of this cycle, this person will be bankrupt. Once this person bes bankrupt, his debt will be a bad debt, and if one or two people do this, it’s fine. But once more than one or two million people do this, it will form a financial crisis.


    That’s why Paypal and mobile payment tforms are very different, and bothpanies can enter into cooperation in the future but will never merge.


    Of course, in Feng Yu’s previous life, mobile payment tforms are limited to China. The transacted currency is RMB, and Paypal is primarily using USD. That’s why Paypal is more sessful than mobile payment tforms.


    But after mobile payment tforms entered the US, it bes sessful. The biggest advantage of mobile payment tforms is its low transaction fees. The mobile payment tforms bear part of the charges, and the banks waived a portion.


    With the transaction data in hand, the mobile payment tforms are not worried they have no chance to make money. Moreover, the mobile payment tform has a seven-day clearance, which allows the tform to have enough cash flow. This is like using their customers’ money to invest and make money.


    With Feng Yu around, and the mobile payment tform cannot get investment returns of more than the transaction fees, they should just close down!


    Another big difference between a mobile payment tform and Paypal is Paypal sellers can withdraw cash immediately. In contrast, a mobile payment tform requires the buyer’s confirmation. If not, the seller has to wait for seven days, and buyers can also dy their payments.


    These two types of third party payment tform still have some other differences. Of course, both have simrities, like they are both online payment services and are targeting simr customer groups.


    Feng Yu will not exin the details to these banks’ representatives. These banks are willing to ept Paypal as they will get high returns, but mobile payment tform will be taking away a huge chunk of their profits.


    “Mr. Feng, we can help Paypal to develop faster, but we feel the mobile payment tform is not suitable.” The representative from American Express said.


    “Not suitable? Why is it not suitable? I will still pay you all the transaction fees. We will have lots of users, and it’s beneficial to your banks’ developments too. That’s why you all should give us a discount on the transaction fees.”


    “Mr. Feng, this mobile payment tform will infringe the users’ privacy. We think this is not right.”


    Infringe the users’ privacy?! Bullshit! You all are talking as if your banks did not make use of your customers’ data.


    These banks just want to keep all the transactions to themselves and not let others know about it.


    “What if I allow you all to invest in this mobile payment tform in the future?” Feng Yu will allow them to own a minor stake in this tform in the future for their support.


    “It’s too early to talk about that. If we can invest in it now, we might consider.” Citibank’s representative replied.


    The Citibank’s representative wants thepany’s shares and be one of the bosses of this tform.


    “Who do you all think you are?! All of you can leave now! There are other banks in the US!”