Paypal

1. What is the value proposition that PayPal offers consumers? How about merchants?

The value proposition it offers is that the system is very fast at transferring money into accounts for consumers to buy stuff online. You do not have to be waiting to get money because, as is the case of check and credit cards money sometimes delayed. Another advantage is that here you do not restrict the use of debit card because in many cases only let you use debit, otherwise the leave use credit cards to purchase items over the internet is more expensive for sellers that the able to use PayPal. Using PayPal is also very secure when it comes to user’s financial information. PayPal reassure customer’s protection with financial details with automatic fraud screening and security filters. Other value proposition is that it is more convenient and cheaper for consumers to use PayPal because cost is a little cheaper than using your credit card because you do not pay for the use direct from your account the only way in which it is charged to transfer money to foreign accounts, currency exchange or new financial products.

Overall, value propositions for consumers are mainly easy, convenient and trustworthy to use; for merchants it is instant transfer of funds, low transaction fee and flexibility of offering another option of payment.

2. What are some of the risks of using PayPal when compared to credit cards and debit cards?

Paypal is safe and if you fund through your bank account, it provides protection on your purchases. If you buy a product off of ebay and they don't send it or it arrives not in the condition described, you will get your money back. There are risks. You are allowing an entity routing permissions on your bank account and/or credit cards. Depending upon the security of your computer against viruses and the safety of your internet connection if you are using wireless - your bank account and credit card information can be stolen.

3. Are P2P payment systems...