The payment market is devided into two areas, online and offline payment. Online payment is mainly driven by Paypal which meets the customer’s needs by simplifying the whole payment process in the online business. Since users felt inconvenient when they typed serveal infomation such as a credit card number, a cardholder and even expirated date, the online users welcomed PayPal’s new solution.
On the other hand, the offline payment market has many billing methods and various payment processes from cash to credit cards. Among these payment methods, a credit card company is positioned as a main service provider that grabs the important assets such as card affiliates. But recently, the offline payment market is about to change by RFID technologies. Bling Nation is one of the interesting examples that use RFID sticker. This company has tried to make its own affiliate networks by allying with local banks.
Last year, PayPal tested the offline payment service with Bling Nation. PayPal provided its customer accounts to make a payment in retailer stores. For now, it’s not clear whether this trial would be successively connected to the expansion of the offline payment service. But banks (especially local banks) are expanding the market of debit cards and mobile service innovators are making new business opportunites against the credit card companies. Though it’s not easy to overcome the competitiveness of credit card companies, online payment platform providers such as PayPal or Facebook would make more chances in offline retail stores.