PayPal recently announced a new e-commerce platform that will soon allow small and medium-sized businesses to use the same PayPal service as Instagram and Facebook.
It is understood that the new platform will fuse PayPal’s existing part of the payment business, such as consumers through PayPal checkout, merchants can collect online. Soon, SMEs will also be able to use PayPal’s back-end systems, such as fraud protection, compliance, and account authentication.
Partners and online platforms make up PayPal’s business. Since PayPal became independent from eBay in 2015, its business has expanded well beyond online settlement. On a recent earnings call, PayPal chief operating officer Bill Ready said the company’s top 20 online platforms were up 40 percent from a year earlier, reaching nearly $90 billion last year alone.
The new PayPal platform will also include other back-end processes, such as residency, spending, dispute handling, AI, and machine learning-driven fraud protection.
PayPal’s e-commerce platform will be the first to launch in the U.S., the UK and Europe, with plans to eventually expand to all of its markets.