In order to catch up with the current revolutionary e-commerce segment, Visa Inc (NYSE:V) has finally rolled out ‘Visa Checkout,’ an online payment system to compete with eBay Inc (NASDAQ:EBAY)‘s well established arm PayPal. Following this, CNBC’s “Squawk Alley” group tried to evaluate the impact of Visa’s move on eBay Inc.
It is believed that Visa Inc (NYSE:V)’s Visa Checkout is aimed to make things easy for its users and is more streamlined in comparison to PayPal, but many believe that the move is a little too late for the company. As soon as the service debuted this week, Visa Inc (NYSE:V) quickly rushed to partner with Neiman Marcus, Staples, Pizza Hut and United Airlines.
Highlighting the need to process payments faster online, Visa’s CEO Charlie Scharf said in a statement: “As people around the world spend more time and money online, particularly using mobile devices, they are demanding a fast, secure and frictionless way to shop using the payment cards they already know and trust.”
In any case, the service is seen to take a target at eBay Inc (NASDAQ:EBAY)’s Paypal division, which has quite recently seen the departure of its executive David Marcus, who has joined Facebook Inc (NASDAQ:FB). Moreover, Visa’s move could surely add to eBay Inc (NASDAQ:EBAY)’s existing troubles as it is struggling as a parent holder of PayPal. At the same time, the scale of operation of the two companies are substantially different as Visa processes $4.4 trillion in payments, as against $1.8 billion transactions handled by eBay Inc (NASDAQ:EBAY). Therefore, Visa Inc (NYSE:V) could be a potential threat to eBay Inc (NASDAQ:EBAY).
However, the direction of shares is not convincing for Visa Inc (NYSE:V) so far as they were down by more than 2% on Thursday while eBay’s shares ended a little higher. CNBC further reported that the news of David Marcus’ departure appears to be digested by the market as eBay Inc (NASDAQ:EBAY) has significantly recovered 5% over the last one month.