PayPal Centralizes Payment Processing For Uber And AirBnb -

PayPal Centralizes Payment Processing For Uber And AirBnb


Understanding the way payments work is quite revealing in some cases. as it explains how a handful of companies make money off millions of transactions around the world. For example, very few people are aware of how PayPal is making a ton of money through their BrainTree hub, which is used for mobile payments by services such as Uber and AirBnb. A lot of revenue is generated for this one company powering a lot of payment options all over the world, and this type of centralization is not good news.

Also read: OmniDex: Keeping You From Getting Goxxed?

PayPal And BrainTree Power Your Mobile Payments

Bitcoinist_PayPal BrainTree

Very few consumers are aware of which services are responsible for processing credit and debit card payments all over the world. Especially when it comes to mobile payments, there seem to be very few companies who can gain any significant traction. BrainTree is one of the most profitable companies, which is paying dividends for overarching company PayPal.

In fact, PayPal is one of the most popular payment processing firms in the world today, thanks to their various services. Most people know PayPal itself as a way to send money all over the world by using plastic cards and bank accounts, but there is much more to this company than processing payments themselves.

Among the subsidiaries of PayPal are companies such as Venmo and BrainTree. The millennial generation will be well aware of the existence of Venmo as this solution lets users split bills and transfer money by using a mobile device. Venmo is used by various retailers around the world, including Papa John’s.

BrainTree, on the other hand, is lesser known by most people, even though it is one of the most commonly used payment processors in the world. Companies such as Airbnb, StubHub, and Uber are all making use of BrainTree to process card payments, which bring additional revenue to PayPal as a company.

Distinguishing between companies and services with the same name is important. PayPal is both a payment processing company and a payment processor itself, despite having other subsidiaries which are also focusing on processing payments. At the same this, Venmo and BrainTree are bringing more functionality to PayPal as well, and these new features might be showing up on the Paypal platform in due time.

Centralized Payment Processing Companies Are Not Good

Bitcoinist_PayPal BrainTree Bitcoin

While it is interesting to note the PayPal company owns so many different payment processing tools, it is also slightly worrying to know a lot of payments are handled by the same group of people. This removes a lot of potential competition from the market, as these traditional solutions are all part of the same umbrella.

But there is some positive news for Bitcoin users, as BrainTree is accepting Bitcoin payments in some capacity. However, it remains up to individual sellers and businesses to enable the Coinbase integration into their platform, an option which is not gaining any significant traction just yet.

What are your thoughts on the PayPal company handling payments for so many different platforms? Let us know in the comments below!

Source: Techcrunch

Images courtesy of PayPal, BrainTree, Shutterstock

Jp Buntinx

Jp Buntinx

JP Buntinx is a freelance Bitcoin writer and Bitcoin journalist for various digital currency news outlets around the world. In other notes, Jean-Pierre is an active member of the Belgian Bitcoin Association, and occasionally attends various Bitcoin Meetups in Ghent and Brussels

  • GB

    The world of Creditcards is divided by Visa, Mastercard and Amex… Is that any better?

  • Notwithstanding the otherwise constant stream of delusional and disingenuous nonsense that flows from eBay/PayPal, the share prices of these two clunky operators demonstrate the reality …

    Aug 2007: (pre John Donahoe) EBAY ~$40; AMZN ~$40;
    Jul 2015 (pre eBay-PayPal split): EBAY ~$66; AMZN ~$480;
    Jul 2015 (post-split): PYPL ~$37; EBAY ~$28; AMZN ~$530;
    Currently: PYPL ~$39; EBAY ~$24; AMZN ~$577—LOL …
    eBay is effectively going backwards, at a rate of knots …

    Notwithstanding the “spin-off” of PayPal from eBay, eBay and “PreyPal” remain effectively joined at the hip, and anyone that thinks otherwise is simply uninformed; and, thanks to a continuation of most of the destructive policies introduced over the eight year reign (2007–2015) of the “Pain from Bain”, John Joseph Donahoe II, the eBay marketplace is continuing on its slow journey down the toilet; nevertheless, during Johnny Ho’s occupation of the eBay corner office, this cretin and his gang of hand-picked Keystone Kops still managed to obtain for themselves massive, unearned, “performance” bonuses—while the company’s “long” shareholders have never received one penny …

    PayPal is a clunky, non-deposit insured, virtually non-regulated, “pretend” bank; a payments intermediary that, in the main, rides on the back of the world’s banks’ existing payments systems with no formal agreement with those banks other than PayPal’s operating of a credit card merchant account facility with, and the making of direct debits/credits on some users’ bank accounts via, one of those real retail banks. Funds left “on deposit” with PayPal are not insured and are also at risk of being subjected by “PreyPal” to various holds. Even more perilous (for PayPal’s shareholders), the great majority of PayPal’s business originates from its (still) effectively mandated place on the eBay marketplace, so it logically follows that—with the destructive Johnny Ho-Ho-Ho now sitting at the head of the PayPal boardroom table—”PreyPal” will undoubtedly be accompanying eBay on its journey to the sewage farm.

    The reality is, PayPal’s parasitic, intermediary, payments operation has little long-term future outside of the atrophying eBay marketplace now that professional online/mobile payments offerings from MasterCard (“MasterPass”) and Visa (“Visa Checkout”) are available to any online merchant that has (or can obtain) a credit card merchant account with a real bank. And, with respect particularly to “mobile” payments, notwithstanding Apple Pay’s disappointing initial showing, methinks Apple Pay, Samsung Pay, Android Pay, “MasterPass”, and “Visa Checkout”, that is, those operators that have formal relationships with the retail banks and MasterCard/Visa, will soon enough throttle the flow of oxygen to a great deal of the clunky PayPal’s parasitic operations—LOL …

    Regardless, PayPal users should never give PayPal an authority to direct debit their bank accounts. PayPal should only ever be given access to funds via a credit card account; that way your credit card-issuing bank will be the final arbiter of any transaction dispute; similarly, sellers should never accept payment via PayPal for goods that are going to be picked up by the buyer; PayPal offers sellers zero protection from scammers in such circumstances …

    eBay is likely the most unscrupulous commercial entity operating on this planet; but, have no fear, eBay is an equal-opportunity fraudster; demonstrably, they will knowingly aid and abet the defrauding of buyers by unscrupulous eBay merchants who bid on their own auctions, and, conversely, of honest sellers by unscrupulous buyers—as long as there is a financial benefit in such fraud for eBay. And if anyone thinks that the clunky “PreyPal” is any more scrupulous, given their equally poor customer service and lack of any human mediation of transaction disputes which effectively results in a hard-wired bias towards buyers/payers that they necessarily now have to pander to—good luck to all you small online merchants who may get burned in the process …