Dissertation Paypal

Document Type:Dissertation

Subject Area:Management

Document 1

On to come up with the best platforms that win the client needs. In the efforts of winning the market share, different companies are struggling to innovate and improve their services. Customers and the merchant in the previous years have felt insecure when doing business online. However, the notion of insecurity is going down as companies innovate. This paper also gives selected online payment operation and it summarizes some of the strategies that PayPal Company has taken in the effort of becoming the best platform that provide online services over the world. The transactions worth 570. 32 trillion Yuan were recorded. This is a 10% increase in the amount of the mobile transactions that were recorded in the previous years. The report indicated that about $ 38 billion online payments Yuan were transacted.

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These transactions were worth 29 trillion Yuan. Payment Canada, for instance, is one of the companies that act like the money transmitter to promote the online operation in Canada. The principal objective of the payment Canada is to become the center of excellence. One of the significant contributions of this company is that it has enabled and speeded up the mode of online transaction. It has contributed much to the payment industry by the introduction of leading-edge payment research. In particular, the Canadian payment annual methods and trends survey has consolidated the Canadian systems of payments. The great improvement of the broadband connections in both developing and the developed economies and the presence of massive consumer familiarity with the perception of shopping online contributes to the increasing adoption and the experimentation which builds the trust amount the consumers regarding any transaction that may happen online.

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This is the significant imperatives that ensure the flourishing of e-commerce. The aim of the dissertation This paper seeks to evaluate the performance of PayPal in comparison to its competitors in the market. Additionally, the article will determine the strategies employed by PayPal that will push the company to become the most significant method compared to other payment methods. The company is working towards becoming a pacesetter in the industry and therefore is working towards creating strategies that will put it ahead of its competitors. This has consequently precipitated the emergence of different methods of payments to fasten and ease the modes of transactions. The fees that match with different transaction context have been developed. For instance, pay in advance, pay afterward and pay after delivery ways of conducting business are now in operation.

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With these types of business, business firms have to choose the best method of transacting with their clients to reduce the chances of incurring losses. It is, therefore, a fact that the selection of the right payment method concerning the context, vertical and the country remains the key facilitator of the businesses especially those that involve conversions of currencies online. Introduction of these payment methods has however led to the illegal use of these technologies due to the fact that most of the people who sign up to them have little knowledge about them. Some of these technologies have untraceable transaction history rendering them to money laundering and criminal behaviors like terrorist funding. These issues have however led to increases government attentions leading to enactment of regulations that govern the operation of these applications.

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Different companies have placed different regulatory strategies to control these unlawful users of their financial systems. Various agencies to regulate the operations of online business have developed strategies to close loopholes that give money laundering and unlawful transaction. de Alba, 2). The first ruling explained the extent to which the user may create or mine a virtual currency which is convertible for the users’ gain. The decision indicated that the user of the application is not the transmitter of currency under the bank secretary act. The second ruling showed that when a company is making any purchase or when selling convertible virtual money in an objective of gaining some benefits like profit is not considered as a money transmitter (Ana L. Pereira and Ana Maria H.

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de Alba, 2). Although the transactions today show a concentration on payment through electronic and online payments, the methods have some limitations. These limitations may discourage the firms to use online payment and electronic system when making any form of transactions. Some of these limitations include • high volatility of the currency • There is also misuse of the system by the criminals. For instance the issue of money laundering, trafficking of drugs and the exploitation of children. Firstly the behavior of the consumers and the expectations of the consumers keep on changing from time to time. The second trend that is facilitating the direction to innovation is the development of the e-commerce. Various social platforms of the e-commerce have emerged which is the critical factor that promotes the e-commerce development.

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Also, different subscriptions have been made by individuals and the other business entities. Another trend is driving the innovations in technology. This will also be used in presenting insights on some of the factors that customers consider when deciding on the choice of payment method to adopt. The paper will also incorporate theories of consumer choice in determining the factors customers consider when making decisions on the payment method to use. Trautman, L. (2015) noted that customers have information in as far as payment instruments are concerned and therefore make decisions based on such information. Customers have reasons as to why they prefer one online payment method from another payment method. Each context varies depending on the transaction requirements. It means that any increase in the number of transactions (buyers and sellers increment) the quantity of payments or cash circulating in online platforms increases.

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It consequently renders increment of various opportunities that facilitate innovation that tend to solve the problem of online payments. The method of payment that any client will choose is primarily subject to the two-sided landscape of retail market payments. Two distinctive types of users in any transaction include the payer and the payee. Primarily the online payment rely on the following Meta payment tools • Payment cards • The bank transfer payments\ • Payment through direct debits • Cash payments • Cryptocurrency payments and • The direct carrier payments. In fact, there are many methods of payment that match various payment contexts. The development of online payments (selected cases of Europe, USA, and China) EUROPE The access to the fee is one of the areas that have remained a debate in PSD2 area.

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XS2A is known to give room to the third party providers’ access. This service has explicit customer knowledge about the start of any transaction. Merchants only accept a particular method of payment. Due to this, there are some of the issues that are made possible. Firstly, the consumers have a freedom to choose the method of payment that is accepted by the merchants (this is subject to the business context). Secondly, the factors such as the security, personalization, and loyalty, and the geographical locations are among the factors that customers consider before deciding on the type of payment platform to use. Social media has also been involved in transacting online business through placements of adverts. The company has been successful through the provision of new payment services on the internet.

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One of the proofs that the company is growing at a significant rate is that the company is opening new 18000 new accounts per day. The company can handle over 200000 transactions per day. Three-quarters of the transactions in this company are done online. The founders of PayPal; CEO Peter Thiel and the CTO Max Levchin have made PayPal company to be more integrated into the field of e-commerce payment. The company offers online financial services including auction, commercial facilities, payment processing, and online vending among other services. Since its establishment in 1998, PayPal has proven its potential to become a global company attracting users across the globe (González, 2004). Additionally, the company has been consistent in providing quality service and ensuring that all the customers who are located in different places are contented with the quality of service provided.

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PayPal started with developing security software before launching in 1999 to provide money transfer service that was funded by John Malloy. The company grew to become a global company operating in more than two hundred markets and more than 210 million active users from across the globe. This innovation aimed at encouraging students to use their money wisely and for them to take responsibility in how they spend their money. Additionally, it was a move aimed at guaranteeing convenience in transferring money from parents to their children more cheaply and conveniently. PayPal has managed to introduce itself as a brand that is customer-centered. The company works towards introducing services that work towards building efficiency in how customers transact and transfer money from one party to the other.

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In this spirit, the company made it possible for customers to access its code and use this infrastructure in allowing peer-to-peer transactions. The other companies are equally competitive, and therefore PayPal is forced to combine strategies that put it at the front, explained by González, A. The company has to monitor changes in the market and introduce strategies as such changes could contribute a vital role to improve their performance in the market. Research methodology The study employed the use of descriptive data which provides summary statistics of information collected on PayPal and some of the strategies the company has employed to become the most significant online payment method in the market. The data obtained from different samples, ensured that the issue of collection of data was practical and therefore it wasn’t based on probability theories.

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Masses of data were collected and use this information in summarizing the average sample and learning about the population. Additionally, a sample size was selected from the population. The questionnaires that were distributed to the respondents were sort out using random sampling that included people above 16 years. The following criteria was used to calculate the sample size The calculation of the sample size was based on the error margin of the confidence interval which was set at 95% level of significant. The error margin usually produce an impact on the sample size, large sample size are usually preferred during the survey due to the fact that the cases of biasness are minimized. For this reason, the accuracy when making conclusions about the study is improved.

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503989, this area ensures that the survey carried provides the accurate information about the population. due to the fact that the marginal error = 0. 503989 * the standard error can be calculated using the formula below Standard error = p is preceding judgement of the correct value p and n is the approximation of the sample size. In my case ME is equal to 0. 005, Z= 0. The following will be used under survey in collecting information. It is fundamental to mention that the sample size selected to contribute to the project will be chosen randomly to minimize biases and error. Data collection methods A questionnaire was prepared and administered to a randomly selected sample. The respondents were expected to complete the survey within one week. The questionnaire comprised both open-ended and close-ended questions as part of ensuring that their ideas are incorporated.

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The information from different companies ensured unbiased comparison and conclusion. Data quality control The credibility of the data that was collected was realized through storage of the information materials and sources to ensure further investigations. In addition, the respondents were informed of the purpose of the survey. This ensured that the respondent give unbiased information in the survey. In addition, the survey questions were piloted before giving them to the respondents. The researchers will inform their study participants on the nature of the research. The information will touch the requirements of the research and the importance of the project to the people of the selected area. The information provided by the study participants will be handled with utmost privacy and confidentiality.

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The researcher will be responsible for ensuring the data collected anonymous, and the subjects cannot be victimized for their views. The limitation of the study The survey questionnaire will be administered to the people within the school area town. Finding some of the strategies that different countries use in effort to attract more clients is a subject matter in this survey. This paper also aims at comparing different strategies used by PayPal Company in effort to become the best platform that provide online payments globally. This paper is therefore important to both scholars and the business people and it will provide basic information regarding the operation of online payments. Research Questions • The study will search the response to the following research questions: • What strategies have currently been employed by PayPal in giving it an edge to become the best company in the market? • How has PayPal built its brand to become a principal competitor in the market? • How does PayPal compare with its main competitors in the market? • Have PayPal employed strategies that will push it to become the best company in comparison to its main competitors? • What is PayPal doing differently from its competitors that will push it to become the largest and best payment method in the market? Research findings Discussion and analysis of results PayPal has made it possible for students to shop from the international markets with ease.

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A long time ago, international students had to carry money to transact physically. Some years back PayPal could provide single services. The ability of PayPal Company has enabled the company to double the customer’s value. This has made PayPal company to reduce its churn rate to about 50%. It is a fact that PayPal Company is facing stiff competition from other companies that provide similar services. There is stiff competition from companies like Visa and MasterCard is a threat to the company. He noted that out of the 200 million users, 16 million users are those that operate under merchant account and the rest operate as customers. The competitive advantage of PayPal The two-sided business model gives PayPal company some competitive advantage. Through the operation of the two-sided network, PayPal company can put in control the end to end proposition.

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The end to end control enable PayPal company to fend off some of the competitions from its competitors such as the Apples Apple pay, which has been focusing on the provision of user interface(Naomi Gray, 2017). one of the advantages of the two-sided network interface is that it simplifies the global company rollout. The majority users of PayPal who are the merchants are usually small-scale vendors. PayPal is, however, making efforts to attract big business firms and businesses like Amazon to their network. Then PayPal CEO Schulman indicates that the transformation of PayPal Company from a product company to a platform provider has a contributing factor in regards to the attraction of more clients into the company. The company has emerged as the best platform that small retailers and large firms opt to operate with.

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It is because the PayPal platform makes the processing of payment and also the platform assists the merchants to identify their high potential of their clients. Different e-commerce businesses happen on the mobile devices. The PayPal company has a reliable mobile presence. Therefore, the client can access their client and merchant account any time they opt to. PayPal has also made the effort of eliminating the frictions that may exist in the store acceptance. This has been boosted by the company strategy of partnership with other companies. For instance, some client may have little information on how the PayPal payment charges work. The customers may be unaware that when making payments, the transaction fee will be drawn from their account balance.

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the frustration that comes from lack of information is a headache to the clients which compromises the customer retention. The pay pal company management noted this issue during two company conferences(Naomi Gray, 2014). To resolve this issue, PayPal decided to limit no annual fees to its clients. This facility attracts more clients to the PayPal business community. The consumer credit is also a valuable tool that will ensure that its customers are retained. Currently, the market is very competitive, and every company is looking for different ways that will ensure that the customers are retained in the company platform. PayPal Company considers the credit facility as a method of retaining its customers and ensuring that it has attracted more customers to this platform(Naomi Grey, 2014).

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Integration of PayPal Company with the android pay PayPal Company has usually been giving surprises to its competitors. Furthermore, PayPal provides contact details for the customer to contact the company’s customer service center in case they experience any suspicion or unusual charges. The company has set up a system that monitors the account all activities, and therefore customers can communicate in case they experiences any difficulties in using the account (Ongtang et al. The secure encryption ensures that the customer’s online transactions are protected from the starting to the end of the transaction. In case of a dispute, the company will hold the funds until the issue is resolved. This is a wise move of ensuring that buyers or sellers do not lose their money from scammers.

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Although some analyst like Paul challenged the move that PayPal took, it is still clear that the credit facility increased the online transaction. Different people all over the globe have benefited from online payments. People are able to acquire commodities all over the world. Technology has therefore made the world small that people can access anything they want at any time. The existence of competition among the money transmitter has an advantage that merchants and customers are now getting the best money transfer services at a lower cost.  The PayPal Wars. : Battles with eBay, the Media, the Mafia, and the Rest of Planet Earth. World Ahead Publishing. pp. 13-26 Kaplan, V. com/risk/intl/en/resources/whitepaper/Understanding-The-New-Payment-Methods-CSMB. pdf. Accessed 19 Apr.

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