1. PAYPAL HAS COMPANY - CASE STUDY - Group - VIII

2. QUESTION 1 What is the value proposition that PayPal offers consumer? How about merchants?

3. FOR CONSUMERS Ease and convenience Trusted way of making online payments Instant transfer of funds

4. FOR BUSINESS Ease of registration Online transaction capability International transaction functionality Some level of Security and fraud protection Quick access to funds Cheaper than Credit cards and does not necessitate merchant bank acct. Cheaper than rivals like Digital River, AlertPay 2Checkout.com, TrialPay, etc.

5. QUESTION 2 What are some of the risks of using PayPal when compared to credit cards and debit cards?

6. Unreliable security and fraud protection – Higher risk Funds once withdrawn cannot be recovered – Loss for customer if goods not received Unreliable consumer data safety – Loss of credit card no, Contact address and contact no. Credit cards have much better data safety and money retrieval protection Compared to credit cards, Paypal consider unregulated

7. QUESTION 3 What strategies would you recommend that PayPal pursue in order to maintain its growth over the next five years?

8. Enhance security – make consumer feel safer Incorporate funds security to protect cheated customers Better background checks for business and weed out frauds After above steps convince business to change over and become first choice of businesses Integrate newer avenues coming up like mobile payments

9. Question 4 Why are cell phone networks a threat to PayPal’s future growth ?

10. Anywhere payment – even on the move Mobile carried everywhere and faster to operate, even compared to Notebooks Larger customer base – world over 3 billion mobile users compared to 1 billion computer users Mobile payment can double up as payment mode even for normal shopping

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