THE REINY DAY GUIDE TO TECHNOLOGY

 

Summer 2000
June - August

 

Feature: PayPal

ZDnet ran an article called PayPal is sellers' friend, buyers' enemy. The article discusses PayPal's only downfall; there are no failsafes against fraud. You cannot stop payment or dispute payments as you can with a credit card. But PayPal is incredibly safe in terms of protecting your bank and credit card accounts.

The article is a startling contrast to Robert X. Cringely's glowing review I'll Gladly Pay You Tuesday -- How PayPal Has Already Won the Battle of the Internet Payment Systems. Cringely's article covers more than just PayPal, an online system which allows people to send money to any person with an e-mail address, either via a bank account or credit card.

X.com is a web-based financial services site which created the internet payment service which has beat out Yahoo!'s Bill Pay and ebay's Billpoint.

PayPal, Bill Pay, and Billpoint are in competition, but PayPal has won over the auctioning community, with 5 million users and 2.5 million auctions. PayPal has stated they are working on automated payments, but right now none of the online systems are perfect for paying your roommate your half of the rent without having to write a check. None of the systems are set up for you to make an anonymous payment to your favorite charity. PayPal is now offering a 5.2% yield on balances left in your PayPal account, which will no doubt attract even more users.

 

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