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For PayPal was formed in March 2000 in Paulo Alto, United States by the legendary Elon Musk and Peter Thiel before it was sold to an online auction platform, eBay, for the sum of $1.5 billion in 2002. Ever since it has grown to become a FinTech colossus. PayPal is an e-commerce company that specializes in Internet money transfers. Over the past 22 years, PayPal has emerged stronger and has been touted as one of the most interesting FinTech success stories in the world. It is a pioneer FinTech company that has inspired the birth of other FinTech companies, especially e-commerce outlets, in America and beyond. In this article, I discuss 4 lessons new and old FinTechs in Nigeria can learn from PayPal.
Build Organic Trust Before Automation
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At PayPal, they were able to address this gap in trust by incorporating the OTP (One-Time-Password), which validates the payment. However, merchants might find this OTP process as friction which can discourage buyers from continuing their transactions depending on their mood. The OTP can be seen as friction and might even frustrate users. Acknowledging that OTP might be friction, PayPal has gone ahead to develop a payment solution by building features that require zero or minimal intervention by the user and how the payment can happen in the background without bothering the user unnecessarily. PayPal so far has not compromised on its security while offering frictionless experiences to millions of users.
Invest In Machines That Learn About Users
Prepare The World For The Freelance Economy
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The majority of young people are taking remote jobs seriously, and even prefer freelancing to traditional office work. So it is common to see young people take 4 to 7 gigs a year. Hence, in a world where everything is becoming subscription-based, PayPal has matured into a true financial company that helps young people manage their finance in a world where lifestyles are extremely fluid.
Adopt A Transitive Culture
Closing RemarksPayPal as a FinTech has enjoyed 22 years of trust from its millions of users. Hence, its success story comes with a great deal of lessons FinTechs in Nigeria and Africa can learn from. In this article, we pointed out PayPal’s operation is built on organic trust, before machine learning. This means PayPal earned the trust of its users in the most natural way before incorporating technology that would sustain the trust. We also stated that PayPal invests heavily in acquiring human data, which proved useful in protecting its consumers from insecurities. Another important lesson from PayPal is its ability to prepare the world of business for the freelancing economy. Finally, PayPal’s adaptive and sprinting attitude has helped it stay its head above its shoulders. Featured Image Source: Ledger Insights
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