In my opinion, Apple Pay is one of the factors that caused PayPal’s split from eBay. Apple Pay is secure and simple to use as it operates NFC technology and able to be used in several locations that have contactless terminals. Without your fingerprint, Apple Pay will not make any online transaction. Even though, user lose it iphone/ipad/iwatch, they are able to close down the payment function and erase all its memories in the lost item via its Apple ID. Once again, all the payments made by Apple Pay are private as Apple doesn’t save any transaction information (Apple.com). Apple Pay take advantages from its brand awareness and customer loyalty. Nonetheless, PayPal also has its own benefits to the PayPal user as PayPal is free for buyers, secure, …show more content…
Formerly, eBay acquired PayPal for $1.5 billion only since PayPal is not popular at that time. Through the agreement of eBay setting PayPal as their electronic payment service, PayPal has impressively growth potential within 13 years until now it is worth about $50 billion. The concern is the tangible assessment of PayPal’s market capitalization is difficult to be analyzed if it is in the same company with eBay. This is because they are two different business activities but only can encounter for solitary market capitalization. By extrication this two companies, shareholders are mandatory to assess them independently and require to unlock extra value overnight. A representative market capitalization can reflect their position in particular market and improvement strategy is obligatory to help either eBay or PayPal to achieve their strategic competitiveness. Therefore, it is better for them to be separate as this helps to increase their growth rate and market capitalization as …show more content…
Once they are separating, both of them will have a sharper concentration and superior flexibility to pursue prospect achievement in their relevant worldwide retailer and payment markets. eBay and PayPal able to create sustainable, long-term value for their stockholders and provide prodigious opportunities and experiences for their customer globally via setting the right strategy, structure and operational discipline. This is because eBay and PayPal can be more focus on their own resources and capabilities to generate their particular core competencies and lastly achieve their competitive advantage. Apart from that, separation of eBay and PayPal able to perform better as they can reorganize their market segmentation and targeting in order to place themselves in the right positioning. This can be proved by the improved financial performance of eBay and PayPal after the