Comment Re:Who will win? (Score 1) 176
Hardly. AirBnb and PayPal are both good examples of this sort of thing. PayPal got raided a lot and got sent C&D letters by various state regulators when they were rolling out across the USA. Eventually they had to sell to eBay (their primary competitor) to get enough money and political immunity to survive. There's a book about it called the PayPal Wars that goes into more detail on this.
eBay and paypal were never competitors.
eBay and Paypal are synergistic - eBay needed a low-friction payment platform. Prior to the Paypal acquisition, an auction listing might only take money orders for payment (thought many sellers took Paypal because it was way more convenient). And money orders in the age of the Internet really goes back - I mean, telling the buyer to go to a post office, buy a money order, then stamp and send it off the seller and hopes it all goes alright? If you were a buyer out to screw the seller, you could win a bunch of time-sensitive auctions, then hang them up for weeks waiting for money orders. (You have to remember they will take roughly a couple of weeks for the buyer to get one and mail it off, and perhaps you can claim "lost" and take another couple of weeks). If it was a time-sensitive material, that could span a couple of months and render the product worthless.
Then there was the seller who might receive and claim it as not paid still.
Paypal offered something no one else did (or still do) - the ability for Joe Random to take a credit card payment irregularly. Merchant accounts are expensive and often have conditions. Paypal did not - if you only did 1 $100 sale in a year, that was fine for Paypal. Most merchant accounts would've charged you several hundred dollars if you did that. And credit cards ensured payments could be sent instantly and quickly, more in line with traditional online shopping.
Sure it probably took eBay's might to sort out all the financial and banking issues, but eBay and paypal are not competitors. They're not even just two random companies - they're companies that realize each has a product or service that works really really really well together. Even post eBay/Paypal split the relationship is more than that of two companies.