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September 16, 2011

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Cherian Abraham

If PayPal went the NFC route, which rely on existing POS and Card Infrastructure, PayPal’s gains will be much smaller compared to its current online e-commerce revenue, owing to existing cost structures for processing payments at POS. PayPal would prefer that customers bypass the POS infrastructure completely and use its payment gateway. As competition heats up at the traditional POS hub for NFC based mobile payments, one should see more technology companies like PayPal opting to circumvent POS and Card infrastructure and create their own service framework. A cloud based competitive backbone to the traditional payment networks could disrupt the current interchange environment. Am I wrong?

Raghavan Guruswami, Hyderabad, India

An ideal payment infrastructure, in my view, should be all-inclusive - physical, virtual or on-line rather than specific or exclusive. Am I asking for too much?

PayPal Collections

PayPal’s gains will be much smaller compared to its current online e-commerce revenue, owing to existing cost structures for processing payments at POS. PayPal would prefer that customers bypass the POS infrastructure completely and use its payment gateway.

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