It won’t be easy for Amazon (AMZN) to take significant share of the surging mobile payments market.
But the eCommerce beast will likely give it a whirl.
Amazon began offering to pass along discounts it scores on credit card fees to retailers if they use its digital payments services, Bloomberg reported on May 2. The news sent shares of mobile payments leaders PayPal (PYPL) and Square (SQ) sharply lower on the session. Visa (V) also came under pressure.
Here’s what PayPal CEO Dan Schulman told TheStreet (TST) on the latest Jolt podcast about the Amazon threat.
TheStreet: Do your worry about Amazon? To be fair, it won’t be easy for them to replicate a business like PayPal overnight — if at all.
Schulman: We are an open platform company with literally more services hanging off that platform than one probably realizes. It’s a wide suite of services that are now utilized by 19 million plus merchants around the world. So PayPal goes far beyond just that button. It could include working capital, rewards points, credit services to their customers.
If I take a step back, the world is digitizing. We are in the very, very early innings of this move towards digital payments. As we look at the digital payments world, we think of it as a $100 trillion market. We think we maybe have captured 1% of that market share, maybe even less. So this is a rising tide, and there will be a lot of players in this and it’s definitely not a zero sum game. There is just not one company that will dominate digital payments.
To hear more of Schulman’s thoughts on the topic, listen in below.
PayPal and Amazon are holdings in Jim Cramer’s Action Alerts PLUS. Schulman was a featured speaker at TheStreet’s recent Investor Boot Camp conference. Check out what else he had to say about the future of mobile payments here.
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