Since it's inception in 2002, PayPal has grown into the world's largest online checkout platform. It now boasts a huge network of consumers and merchants, who both use and accept the payment service, and this is a network that is growing by the day too.
However, although it may seem like PayPal isn't going anywhere any time soon, the payment brand isn't without its competitors. In fact, as the online commerce world continues to grow rapidly, so does the number of alternative payment services.
More Competitors Than Ever Before
This means that PayPal now faces an increasing number of threats from newer companies and even established companies who are now trying to emulate PayPal's success.
Whilst this does mean that PayPal's position in the industry could turn precarious at any point, it also means that online consumers (and online casino players) have more options than ever before.
In today's blog post, we're looking at three of the newest PayPal competitors, and how they could give the household name a run for its money.
Masterpass and Visa Checkout
If you regularly shop online, you may already be familiar with the logos of Masterpass and Visa Checkout. These are, as their names suggest, two online wallets offered by Mastercard and Visa respectively.
Both of these services work in a similar way to PayPal, in that they allow for faster checkouts by simply requiring a single login, instead of entering your full card details each time you pay for something.
The Pros of Masterpass and Visa Checkout
For us, the most obvious advantage that both MasterPass and Visa Checkout have over PayPal is that they already have access to hundreds of millions of customers. Almost everyone has either a Mastercard or a Visa card and so their brands are instantly recognizable.
The Cons of Masterpass and Visa Checkout
Although Mastercard and Visa are very well-known brands, the biggest flaw in both of their online checkout services is that they haven't invested in their mobile interfaces.
Nowadays more and more people are familiar with the PayPal interface. This means they can already navigate their way around PayPal and aren't likely to be inclined to use a new, more complicated system.
Xoom and Venmo
Xoom and Venmo are both payment services which are now owned by PayPal. Whilst this means that they can't really be competitors to PayPal financially, they could compete with the brand in terms of popularity.
Xoom is essentially a worldwide money service, much like Western Union. It allows consumers to make send money, pay bills and reload mobile phones internationally. What's more, as Xoom is now partnered with Ria, you can send money to another person online, and they can pick it up in cash.
Contrastingly, Venmo was invented to allow you to pay friends and split bills. It is designed to make transfers easy, informal, and quick. Venmo also taps into the social media trend of today's society, as it allows for you to send comments, messages and emojis with your payments.
The Pros of Xoom and Venmo
Essentially, Xoom and Venmo can both be considered competitors to PayPal in terms of how well they solve different problems. Each has its own specific place in the payment industry, which can seem more comforting than using a payment service which promises to excel at everything
The Cons of Xoom and Venmo
Both Xoom and Venmo are currently only available to US users. What's more, neither service can be used to purchase goods from online vendors, without having to use PayPal as well.
Of course, the whole purpose of both Xoom and Venmo is to be specialized services, and so we think that PayPal has actually been very smart by purchasing both brands.
If you've felt a bit clueless whilst working your way through this page, then at least you're probably already familiar with Apple Pay. Apple Pay, as the name suggests, is Apple's very own e-wallet and checkout service.
Statistically, Apple Pay is PayPal's current nearest competitor, with 127 million users to PayPal's 210 million. What's more, Apple Pay is now forging more partnerships constantly, with over 2,700 institutions now supporting the service.
The Pros of Apple Pay
One of the major advantages Apple Pay has over PayPal is that it's accepted at physical checkouts as well as online. This means you can use the service to buy goods in the real world.
This is beneficial as it means that you can use one e-wallet for everything. What's more, as it's intrinsically linked to your phone, it's always at hand.
The Cons of Apple Pay
As we've just mentioned, Apple Pay is intrinsically linked to your phone. However, naturally, it's only intrinsically linked to Apple phones.
This alienates a whole portion of the industry and could be the reason why Apple Pay is doomed to always fall behind PayPal.
PayPal's Perpetual Growth
Whilst we do think that each of the payment methods mentioned above have their own place within the market, we just can't see any even coming anywhere near close to PayPal's success.
What's more, PayPal has had a cracking 2018 and therefore it's popularity doesn't look likely to be slowing down any time soon.
Here's just some of PayPal's impressive statistics from this year alone:
- Shares in PayPal have reached an all-time high this year, increasing by 25%
- PayPal, and its subsidiaries have had over 40 million app downloads in the last year
- In the second quarter of 2018, PayPal had over 600,000 daily users, which is more than double of what its competitors achieved.
All in all, we think this is quite clear proof that PayPal isn't about to lose it's crown, which means that paying with PayPal (and playing at a PayPal casino) is still very attractive.
What Do You Think?
Whether you're a true PayPal fan or you prefer using a different method, we'd love to hear from you!
Tell us which banking method you love to use and why, or if there's anything which you think your payment method of choice is missing.
If you are a PayPal user, is there anything which could persuade you to use a different service, should it be invented?
Leave a comment below and we'll be sure to get back to you.