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Comment by clumsysmurf | Hacker News Reader

> PayPal’s stock has plummeted over the last year as it faces slowing growth and mounting competition in the digital-payments market.

What is the mounting competition? Does Paze factor into any of this?

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FedNow is what has PayPal's former investors so terrified (so much so that investors don't even think PayPal warrants a double digit multiple).

No cost instant financial transfers between US financial users is coming over the next decade. The Fed has 1,400 banks onboard so far, up from 900 the prior year (that's 1,400 in two years). Half of PayPal's business goes away over the coming decade.

Not sure anyone gets an API at no cost for those US transfers ... for person-to-person, they will be/are awesome, but for commerce, pretty sure it will not be a free service.

We have free instant payments in the Eurozone, UK has had them for about a decade and I'd say PayPal is doing fine (unfortunately). So what's the concern?

I think PayPal and Venmo will be just fine with FedNow. They will work the same but with faster transfers. They will be pseudo-banks with internal transfers, FedNow transfers to others, and instant transfers to bank accounts. They will be alternative to bank apps. PayPal's purchase protection could be important for purchases unless banks work something else out.

Zelle is the one that is doomed since they are bank-run instant transfers that FedNow directly replaces.

Do you know anyone using Paze?

I don't know of Paze.

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