EBay Will Soon Replace PayPal as Its Main Payment Option

EBay Will Soon Replace PayPal as Its Main Payment Option

Assessment

Interactive Video

Business

University

Hard

Created by

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The video discusses PayPal's historical role as eBay's primary payment provider and the implications of their agreement extension until 2023. However, eBay's decision to shift to a new payment processor impacts PayPal, which accounts for 13% of its payment volume but more in revenue due to favorable terms. The video analyzes PayPal's market position, risks, and valuation, highlighting competition from other payment services like Zelle and Apple Pay Cash.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the duration of the initial agreement between PayPal and eBay after PayPal's spin-off?

Ten years

Five years

Three years

Fifteen years

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of PayPal's total payment volume is represented by eBay?

25%

20%

13%

10%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which app is mentioned as part of PayPal's execution risk due to competition?

Cash App

Google Pay

Venmo

Samsung Pay

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

As of the latest analysis, how does PayPal's trading multiple compare to Visa's?

Not mentioned

Equal to Visa's

Lower than Visa's

Higher than Visa's

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason for the debate over PayPal's premium valuation?

Its wide valuation gap

Its market share

Its revenue growth

Its competitive position