The representatives from the four major banks were shocked. Paypal is also Feng Yu's company?!
Paypal is not developed by eBay. It's developed by another company, and their first customer is eBay. EBay had wanted to acquire Paypal but was stopped by Kirilenko.
This is because Feng Yu had acquired Paypal first.
EBay had planned to spend 300 million USD to acquire Paypal, but Paypal's shareholders felt Paypal is worth at least 600 million USD. Although Paypal is still not listed and is worth less than 100 million USD.
The price difference between both parties is double, and the negotiation is impossible. But Feng Yu waved his hand and asked Ralph to negotiate. It doesn't matter if the price is high, but it must be fast.
In the end, Feng Yu bought Paypal for 600 million USD. At the same time, Feng Yu gave Paypal's founders 4% shares each to continue managing Paypal. Paypal's original technical team was also rewarded with 2% shares to continue to provide technical support for Paypal.
With Paypal, why does Feng Yu still want to develop Alipay?
There are two reasons. Firstly, Paypal and Alipay are very different. Secondly, when a company monopolizes the market, it will be targeted by the entire industry. For example, Microsoft was almost forced to break up, and Asian Tiger was split into Asian Tiger US, Asian Tiger Asia, Asian Tiger Europe, etc.
Rather than being split up, why not create a competitor? This way, they will not monopolize the market and will be able to dominate the third-party payment platform market.
In Feng Yu's previous life, Paypal and eBay's development direction is very different. Paypal is like an online credit card, and Alipay is like an online savings card.
Paypal was initially designed based on online banking and slowly developed into a virtual credit card. Alipay's design is based on guarantee, and the guarantee is the core. It will slowly develop into a virtual savings card.
Paypal has expensive handling fees, and this is its main source of profits. Alipay is mainly used for accounts, and the value of the user's spending data is more important than the handling fees. However, this would affect the interests of those banks.
In Feng Yu's previous life, Paypal had developed very fast, but Alipay's development in other countries was slower because of the banks' resistance. Of course, it was best for the bank itself to know the account.
Paypal was inclined to protect the buyer. As long as the buyer had any objections, they could refuse to pay. Alipay is more inclined to protect the seller. Amazon is using the B2C model, and the seller is the company itself. This will prevent the buyer from refusing to pay after receiving the product.
Paypal was more suitable for westerners who liked to spend ahead of their time, while Alipay was more suitable for Asians who didn't like to spend ahead of their time. Even before Feng Yu's rebirth, many people in Hua Xia had never used a credit card in their lives. In many countries like Europe and the United States, when people were old enough to apply for a credit card, they would apply for it as soon as possible.
Credit cards can stimulate consumption, but it is easy to cause a subprime mortgage crisis, which is the so-called fraud. You don't need to have an income, get a loan from Bank A, then get a loan from Bank B, pay off Bank A's credit card, then get a loan from Bank C and pay off Bank B's credit card.
After a certain amount of loans and repayments, the overdraft amount will increase because of your credit rating. It might seem like a good way to never make money and still have money to spend.
However, if there was a problem with any one of the links, then the person would go bankrupt. If the person goes bankrupt, it will be a bad debt. It doesn't matter if it was one or two people. But when one million or two million people are like this, it will be a crisis.
That's why Paypal and Alipay are very different. They can work together in the future, but they will never merge.
Of course, in Feng Yu's previous life, Alipay's development was restricted by Hua Xia, and the settlement currency was RMB. Paypal was born with the global settlement currency, USD. That's why Alipay was suppressed by Paypal from the start.
However, after Alipay entered the US, Alipay managed to turn the tables. The biggest advantage of Alipay is that it doesn't require high handling fees. Alipay will bear part of the fees, and the bank will waive part of the fees. This is the best deal for the customers.
Anyway, Alipay has accounts, and there are opportunities to make money. What's more, Alipay had a seven-day delay in settlement, which allowed Alipay to have more cash deposits. It was equivalent to using customers' money to invest and earn money.
If Alipay still can't earn back the handling fees under Feng Yu's guidance, Alipay will be a failure!
Also, there is a big difference between Paypal and Alipay. Paypal's seller can withdraw cash instantly, but Alipay can only wait for 7 days unless the buyer confirms. The buyer can even delay the payment.
There are some other differences between the two payment platforms. Of course, they also have something in common. That is, they are both focused on online payments. Their main businesses are also relatively similar.
Feng Yu will not explain these details to the banks' representatives. To put it bluntly, Paypal and the banks can accept it easily and still get high profits. But Alipay is different. Paypal is taking away a large portion of the banks' profits.
"Mr Feng, we can help Paypal grow faster, but we think Alipay's model is not suitable." Yun Tong's representative said.
"Not suitable? What's not suitable about it? I will pay you all the handling fees, but we have a lot of users, and it will be good for your development. So, you all should give us a discount. "
"Mr Feng, Alipay will leak our customers' privacy, and we think this is not suitable."
Leak customers' privacy? Bullsh * t! You all are acting as if you all do not have your customers' privacy. What's wrong? Only the officials are allowed to set fires, but the people are not allowed to light lamps?
To put it bluntly, the banks still want to control their accounts and not let others have a share of their accounts.
"What if I allow you all to invest in Alipay in the future?" Yes, they will only be allowed to invest in Alipay in the US in exchange for their support.
"The future is too far away. If you want us to invest now, we can consider it." Hua Qi's representative said.
He wants to invest in Alipay and not raise funds. This means he wants to have voting rights and become one of the bosses of Alipay.
"Is that what you all think? Then you all can leave. You all are not the only four banks in the US! "
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