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Paypal Case Study

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Technology Evolution
Case Analysis

The case is intended to be used as a basis for class discussion. It is not intended to serve as endorsement, source of primary data, or illustrations of effective or ineffective management. Copyright © 2010 SOM, AIT, P.O.Box 4, Klong Luang, Pathumthani 12120, Thailand.

PayPal -Technology Evolution - Case Analysis

Technology in PayPal
The digital wallet, firstly introduced by Peter Thiel and Max Levchin, might not be a success in the first introduction but it disrupted the payment service in the world. Some trial and error and finally integrate its service with eBay, the technology was accepted by the market. The digital wallet was such a radical technology turning a new face of payment …show more content…

It tested the market with the simple technology - PayPal text payment. The service was not widely accepted in the market due to its low performance. The strategy of mobile market emerging was clearer. It emerged with the advanced technology - NFC immediately its standard was announced and launched with its Android application. Moreover, when Square introduced a mobile credit card reader and mobile wallet, PayPal did not hesitate to imitate its technologies and top up with other innovations, such as credit card image reader by acquiring
Card.io to prevent ruining of Square when its technology was widely adopted in the market.

New product development
The first product of PayPal, digital wallet on PDA; was a great radical idea of both inventors. The digital wallet technology was equipped with both secured core technology and attractive interface for customer but the inventors were lack of consideration to the technology environment and customers' needs. It was ahead of the time due to too little number of PDAs, its host technology. Ten years later, a mobile phone became popular and much smarter than before by many great inventors in recent years - Steve Jobs and his team at Apple, Google's Android team and Samsung and even the late inventor for a mobile phone Microsoft. A mobile phone became common thing for people.
When customer need came upon with technology capability, the technology gain a chance of
success.

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