16 thoughts on “Skype-PayPal Integration”

  1. a lot of folks have overlooked the potential for PayPal-Skype integration as the real upside behind the eBay-Skype deal. the existing userbase for Skype is an interesting demographic — tens of millions of international users, many of whom have cross-border interests (read: family / immigrant remittances, ebay sales, etc).

    whether or not the price tag was justified, look for eBay to promote growth coming out of further Skype-PayPal opportunities… especially since growth has been slowing down in many of the eBay marketplace geographies.

    Skype together with PayPal as a combined communications payment API platform has a lot of promise. only time will tell if eBay exec mgmt team allows their younger acquisitions enough freedom to deliver on this potential… or conversely, whether they get bogged down with succession politics & other corporate bureaucracy.

    history as a guide, i’d say it’s an even bet.
    (but i’m still rooting for my old peeps to pull it out šŸ˜‰

    [full disclosure: i used to work for PayPal]

  2. Hey Dave! šŸ™‚

    I have to say, if Paypal/Skype was the rationale for the acquisition, wouldn’t they have stated that at the time the deal was done?

    Skype on eBay was supposed to be the money shot of the Skype acquisition. But the thing that every single analyst neglected to mention was that eBay has historically gone ballistic whenever buyers and sellers try to communicate before the transaction is completed, to avoid fraud and disintermediation — it’s going to be a very difficult balancing act to get $2.6B out of an activity that eBay has historically not been very warm to on its site.

    (I should post my own disclaimer here that I used to work for eBay…)

  3. Money slowly shows it’s original form to the wide public: it’s just pure information like everything else, nothing more and nothing less.

  4. I agree with Dave McClure, but put it as much more than an even bet. eBay Inc. will certainly allow Skype to thrive and my bet is that this is just the beginning of what we’ll see šŸ˜‰

    C’mon Jeffrey, you know that not everything is in a press release! Where’s the competitive advantage of revealing all your cards? šŸ™‚

    Finally, let’s just look at eBay’s (very short) track record of enormous acquisitions — PayPal. When the deal was done there was lots of talk about the price. In hindsight, it was a phenomenal deal. But that’s because eBay and PayPal did great integration at various levels.

    The eBay execs are not stupid. My guess is that the same will happen here.

    [Full disclosure: I used to work at eBay]

  5. i agree the ebay execs aren’t dumb shri, but sometimes it’s hard to swallow your corporate hubris and let new products & solutions grow that [might] cannibalize existing cash cows & proven markets… especially for public companies with an eye on quarterly numbers.

    it’s true eBay (& PayPal) did a good job making the PayPal deal work out very well for their shareholders. however, they’ll only be able to keep pulling billion-dollar rabbits out of their hat to the extent they can keep smart folks like you around šŸ™‚

  6. In my opinion, Ebay made a very good acquisition. Now it depends on ebay management’s ability to make use of the software and talent that came with skype to develop next generation E-commerce services.

  7. I just got version and it’s not built in yet. Other blogs had this screen cap and suggested it would be baked into 2.5. Not so. But it’s a neat feature and one that makes a lot of sense. Hopefully not too far off.

  8. Paypal was a great acquisition for EBay because it compliments EBay’s existing business. For years Walmart has tried to get into the banking business. EBay got into the banking business by buying Paypal, and avoided many of the regulatory hurtles that have prevented Walmart from doing the same. The best rationale that I have heard for EBay buying Skype is that Skype has a large and growing user base in developing countries, and that Skype/Paypal will allow individuals and smaller businesses to easily and inexpensively transfer funds anywhere in the world. EBay paid a lot of money for Skype, and if Skype/Paypal becomes too successful there will be a lot of lobbying to impose banking regulations. On the other hand, Citibank generates most of its profits from individual customers and small businesses. If Skype/Paypal can execute, the profits can be huge.

  9. I deem this goodly.
    This is a significant play taking advantage of alternate payments systems we here in America have not really seen before. I lived in Europe and have travelled to Asia and Australia and nothing had confounded my newbie-travelling sense of commerce than realizing how un-aaccepted credit cards were for the simplest of purchases – even IKEA refused my VISA when outfitting a new apartment with three huge carts full of goods – in this, our shiny new millennium {I had to get a wad of cash}.
    “Over There” they make large and small payments just using the mobile phone in their hand, and some wiley ‘xecs appear to have their synapses firing sufficiently.

  10. why the hell I cant pay for my skype credit with paypal ? not showing as option, it shows in the site and everywhere that my country has it, then it only gives me moneybooker which locked my account because I entered wrong password. Because of that I cant pay for the damn paypal from one year

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