Starting from July 20 PayPal becomes independent company, providing services in the sphere of online payments. The corresponding decision to split the two companies has been approved by the eBay Inc. board of directors.
Let us remind you that eBay purchased PayPal on 2002 at $1.5 and hence allowed more interest towards the payment system from the audience. Along with that the company couldn't get serious return from the transactions processed. Top management has made proper analysis and shared the opinion saying the joint management leads to negative outcome and it would be better to split the online platform into two separate companies.
First gossips appeared in 2014, however there was no exact date known. At the same time one of the company's shareholders Carl Icahn expressed the opinion saying that eBay and PayPal should exist like two separate companies.
According to the latest information eBay shareholders are supposed to become the main shareholders of PayPal as well. The shares will be spread proportionally to their ratio in eBay.
Former general manager of PayPal company Bill Harris assumes the company will be forced to compete with the monster corporations Apple and Google after going separately from eBay. In the interview to Bloomberg Harris shared his view of the PayPal future in terms of competition with Apple and Google. Specifically answering the question should the company take care of the competition with alternative payment systems, mostly Apple Pay and Google Wallet, Mr. Harris is sure they will always compete and PayPal is going to meet a huge challenge, due to the number of other companies on the market, dealing with mobile and retail payments apart from PayPal. They constantly take innovations from each other. In the nearest 6-12 months there won't be much of a progress here.
In order to make the PayPal company competitive with the giants, enormous work should be done. As the survey says this year Apple Pay is ahead of PayPal in terms of customers' popularity.
