Tuesday, June 20, 2017

PayPal’s CEO seems awfully defensive about Apple Pay’s person-to-person payments feature →

Come iOS 11, Apple Pay will allow for person-to-person payments, competing with PayPal, Square Cash, and Venmo. PayPal’s CEO, Dan Schulman, comes across defensive as he tells The Telegraph the reasons why Apple can’t succeed:

“We own the full value proposition. Apple can never do that because they don’t do the risk associated with it, they don’t do the onboarding, they can only provide what they hope is a good user interface. We try to provide that end-to-end value proposition and very importantly we do it across operating systems”

Has any company ever made a similar claim about Apple and been accurate about it? You’d think they’d have learned their lesson. This will make for a nice, steaming bowl of claim chowder down the line.

From Palm’s Ed Colligan 1, to Michael Dell 2, executives just can’t help from being defensive when Apple entrenches on their turf. Add Dan Schulman to the list.

Here’s the reality: nobody cares about the ‘full value proposition’. People just want a super-easy way to pay each other. As far as being cross-operating system capable, I’d wager that doesn’t bother Apple, because they’re in the market for selling devices. It makes for an even more compelling reason to have an iPhone, and will instantly have a huge user base thanks to the millions of iPhones in the United States adopting iOS 11 in the fall. Seemingly no sign up will be required for current users of Apple Pay with a debit card.

As for the competition, Venmo and Square Cash are great. I love how Square Cash deposits instantly, but more people seem to use Venmo. Either way, I hope Apple Pay’s new system will enable immediate deposits, so I can stop using anything else and just have people sign up for Apple Pay if they haven’t already.

6/20/17 at 5:00pm Pacific

Quite apropos, today PayPal announced they are bringing instant payments to their platform.

PayPal users in the U.S. will soon be able to instantly transfer money to their bank accounts via eligible debit cards linked to their PayPal account. We expect that funds will typically be available in your bank account in a matter of minutes, although some banks may take up to 30 minutes. Our beta of this is now available to select PayPal users and will be made available to all U.S. PayPal users with eligible Visa or Mastercard debit cards over the coming weeks and months.

The issue aside, PayPal is just a horrible company. They have a terrible track record, and the number of horror stories are deeply concerning. Take this story about the legendary destruction of a $2,500 violin for example. Seriously, don’t use PayPal unless you absolutely have to (eBay).

  1. On the original iPhone: “PC guys are not going to just figure this out. They’re not going to just walk in.” 
  2. When asked what he would do to fix Apple in 1997: “I’d shut it down and give the money back to the shareholders.”