Comments
1 CommentsPayment gateway - a relook
There appears to a mad rush for the only most popularly known Payment Gateway across the globe and that is: PAYPAL. Dominance by a single entity is not good as it implies an absolute monopoly and such organizations dont move with the moving economy - note that this is a very personal view.
Today what the young world needs is the ability of upcomming entrepreneurs to get mobile faster and working within their resources. The monopoly of any individual concerns may hinder the growth potentiality of those having extremely acceptable IDEAS to manoeuver in the real life situations.
Thoughts in this direction would be appreciated.
Ozone42
Written Sep. 19, 2008 / Report /
Your point is clouded. What would you like to see?
Paypal is dominant because it offers the best services to the most people with the most direct and simple way to implement them. More traditional payment gateways have a much higher cost, much more involved initial time investment in getting set up, and you have to deal with your bank as well as the gateway. These older gateways were dominant from the birth of e-commerce up until PayPal started offering business solutions. PayPal is the new guy to market, and the innovator in the field.
There will always be a dominant player in any market. That just means they're doing better. Nothing keeps them there except for their own choices and practices (and perhaps, momentum or laziness of customers.) Anyone can come in with a better idea and take the market from them. It may not be easy, but there is nothing gluing them into their dominant place.
Take a look at Microsoft. They've been in obvious decline for a few years, and many analyst now agree that they may be very close to the point of no return — if they haven't already passed it. Here's a titan that was so dominant that world governments tried to topple them. This may have contributed to their downfall, but it seems more likely that their own choices in business have led to it, coupled with good choices by their competitors.