PayPal provided the means to cheaply and easily onboard those eBay Sellers on to the card Networks, in the process shifting potentially billions of dollars of payment volume to the Networks. PayPal was good for the Networks and they cooperated. PayPal was also good for eBay, as they accelerated the velocity of transactions by speeding up the payment cycle, so eBay acquired PayPal. …
In 2011, Google pioneered the vision for NFC payments and secure tokenization (more on these technologies in a bit). It was a beautiful concept, but like PayPal, they too ran into execution challenges. They needed to partner with the big mobile operators who had their own visions of owning offline payments. And, they were early; ahead of the terminal upgrades upon which the whole solution depended. Google Wallet, while the right vision, was stalled.
The Networks’ strategy ensued as they put all their weight (and chances) behind these two protocols. Their first step was to figure out how to get merchant card terminals to support NFC and the means to do this was, once again, to define and legislate standards. … With the key standards and technology in place, and banks and merchants on board, the Networks now needed a major mobile phone deal to bring consumers along and make it all work. Enter Apple–the perfect distribution partner–a master at bringing disparate parties together and creating consumer demand out of nowhere.
The Braintree/Venmo/PayPal story has not yet reached its conclusion. As Ready explained, the company is still trying to find new ways to make the interactions between consumers, their devices, and e-commerce companies more seamless. As he explained, at some point, Ready hopes that users will be able to step off of a plane in any city and have their hotel reservation taken care of immediately through HotelTonight and have an Uber waiting for them at the curb. That is, of course with PayPal as an intermediary
“The difference between online commerce and offline commerce is basically blurring and disappearing,” he said. “There’s a rewiring of the point of sale, and more and more of it is moving toward mobile… Money is fundamentally digitizing.
The evolution of the mobile payment