Payments

PayPal and eBay Start Downsizing

MEDICIFounder and Chief Strategy & Innovation Officer

eBay and PayPal have begun laying off employees, notifying those being laid off, as reported by Re/code. Both the companies are looking to scale down as they are poised to split in the latter half of this year. Some of the PayPal employees who were let go held roles related to sales and product development. These employees belonged to divisions which focus on aiding restaurants and small business retail stores accept PayPal as a payment method.

Update (breaking news) - Don Kingsborough, a senior PayPal executive who was responsible for the online payment giant’s move into the physical retail world, has left the company. He worked on bringing Paypal to in-store, in-person payments. The timing of mass layoffs and his exit is merely coincidental he said. 

PayPal faced disappointment from its in-store initiatives which involved mobile payments and PayPal Here, a credit card reader. PayPal has also not launched its in-store beacon product and has only shipped the product to a few businesses as part of a test pilot. It seems that PayPal wants to focus more on its online and in-app payments systems. PayPal’s  newer business units, which include Braintree and Venmo, have not been affected by the layoffs.

eBay had already cited plans to lay off 7% of its global workforce which is expected to affect 2400 positions across multiple divisions of the company. eBay intends to complete this cost reduction before the planned spinoff of PayPal. For its Enterprise Unit, eBay is looking at options which involve either a sale or an IPO. The Enterprise Unit provides both online and brick & mortar retailers with software tools, warehousing and logistics services.

The spinoff of PayPal from eBay is aimed at focusing on the competition in the payment processing space. PayPal will look to catch up with the new popular forms of payments like Apple Pay. eBay is likely to develop its own payment technology post the spinoff. eBay recently hired a top executive, from Apple’s ecommerce and payments division, for the role of Chief Product Officer. eBay will plan on developing in-house payments capabilities.

It is expected that eBay will still maintain a partnership with PayPal post spinoff. With high focus on their respective core functions post the spinoff, the two emerging entities are expected to become leaner and more efficient.

Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.

Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.

Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.