In the Euro failure, a potential chance for an all-digital currency.
I just received a call on my cell phone from T-mobile and was extremely impressed with their customer service. Over the past few weeks, I’ve noticed that the level of service has degraded (meaning that my signal is not as clear as it used to be). I’ve never complained about this to them but they called in to check how happy I was with the service. Once they identified themselves and made sure that I was the person holding the account, their first question was “how happy are you with the service?” I told them that I thought the quality of service had degraded over the last few weeks (being a long-time mobile phone user, I’ve resolved myself to the fact that service degrades over time as more people join a particular provider. As a result of that low level of expectation, I had assumed that filing a complaint would not accomplish anything.) However, the minute I mentioned that fact to them, they started asking more questions: Where did this happen? How often? Once they got all the details, the T-mobile representative told me that they were crediting my account for twenty five dollars to make up for the trouble.…Read More
Today, Ebay announced that it will acquire Paypal for $1.5 billion in stock. The acquisition makes sense as it merges two successful Internet businesses and turns the online auctioneer into an end to end shop for online transaction. Sizing up the businesses Ebay is primarily in the auction business. Everyday, millions of people buy and sell products through the service. Ebay does not hold any of the inventory and focuses primarily on providing a marketplace for exchange. In parallel, Paypal provides a service that allows people to send money electronically by tying credit card numbers to email addresses. 60% of Paypal’s business comes from people who are using Ebay for auction and Ebay tried to compete with Paypal through its own service called Billpoint. The only problem was that Billpoint never received the kind of support Paypal enjoyed. While other offerings (Yahoo PayDirect, Citibank’s C2It, Western Union’s MoneyZap) tried to go after the same market, Paypal established an early lead and hung on to it. Furthermore, Paypal has worked hard to work with multiple credit card providers, and has established signification relationships with companies like UPS to create a system that allows for end to end processing of transaction. Opportunities…Read More