PayPal Field Is Filling With Competitors Seeking an Edge
- Credit union Internet banking specialist links with PayPal for P2P, citing existing user base.
- Analyst said PayPal brand recognition, service record makes that a compelling argument.
- iPay Technologies answers with its own standalone bill pay service.
- Startup Dwolla said it’ll let price help it make its mark.
A South Carolina online banking specialist made a P2P shot across the bow recently when it said it was using PayPal as the person-to-person payment engine on its Internet banking platform.
"At the consumer level, these other P2P players are virtually unknown whereas PayPal is a household name brand, and no one comes remotely close to the sheer number of end points PayPal already has globally," Broadwell said. He also said lack of consumer-level marketing of the new P2P brands and minimal global settlement capability will be other major drawbacks as the P2P battle unfolds.
"Being so far behind the curve when it comes to total users and user adoption rates also hinders them. For P2P systems to really work well, the payment service, not just the sender and recipient, must have both recognition and trust. PayPal has this in spades and the existing end-user accounts to boot," Broadwell said.
Tom Campbell, PM Systems vice president of sales, said his company also intends to gain a competitive edge by making P2P part of the "transfer" function of its Internet banking service, rather than as a bill pay function such as with iPay and ZashPay.
"Our users don’t need to have bill payment," he said. "We have internal transfers, cross-account transfers, remote transfers and person-to-person transfers built in. Our mantra is ‘move money’ not just pay bills," Campbell said.