Saturday, January 21, 2012

Why does Amazon not accept Paypal? At least Amazon should CREATE something similar to PayPal... Or BUY a company similar to PayPal or something...

Amazon does not accept Paypal because Paypal is owned by eBay and eBay is a competitor of Amazon. Amazon does not wish to support its competitor's brand or product.

But does Amazon have a replacement version of Paypal that it lets clients use? Answer: NO !
Does Amazon plan to create a replacement version of Paypal for use in its site? Who knows ?!

This is an example where Amazon wishes to protect its own business interest. But at the same time, is not able to provide replacement service like PayPal.

Amazon should know that NOT everyone uses credit cards - even in North America. There are students who do not like credit cards.

I read somewhere that the people to credit card ratio for North America (on average):
1 person (in North America) has 5 to 8 credit cards.

But the situation in India is different. On average:
1 out of 60 people (in India) has 1 credit card!

If Amazon does not come up with a strategy to find a replacement to PayPal, it shall lose a chunk of its business in North America. Just saying.

And it shall NOT benefit from business in India from people who do not have credit cards. (I have not done research on this - so this is just an opinion for now...)

- Gerry Som.


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