Short Blog – PayPal and Pinterest

Adding value to small merchants and engaging consumers in new ways. This tie up could certainly fit this goal. However, the financial metrics, Pinterest valuation, user demographic intersection and path to action don’t line up

PayPal and Pinterest – Super Distraction?

What’s behind this deal?

PayPal needs

    1. Increase users and platform engagement (MAU)
    2. Grow the merchant value proposition
    3. Get into the START of a consumer shopping experience
    4. Enable a new mobile first shopping experience – focused on small merchants – from beginning to end (like Alipay)

 Pinterest

    1. “Inspiration to Action” – They are missing the action beyond a ad click.
    2. Stalled user growth
    3. 50%+ Revenue growth with consistent operating loss.
    4. 454M Users with ARPU of $5.08/User vs PayPal’s $21/User
    5. Ad Growth to Action. Advertising business with solid advertising relationships with CPGs and large retailers. However you don’t click to buy from a CPG. 
    6. Needs platform to complete consumer journey.
    Continue reading “Short Blog – PayPal and Pinterest”

    Digital Goods Payment

    There is a birth of new payment types brought on by digital goods. Companies like Zynga, Boku, PlaySpan, Bango, Zuora, SocialGold are being assessed at multiples exceeding 100x revenue. Social gaming is the focus of many of these companies, with estimated transaction volume of around $2.2B and expected market growth of 50-80% CAGR.

    8 Nov 2010

    There is a wealth of new payment types (and currencies) brought on by digital goods. Companies like Zynga, Boku, PlaySpan, Bango, Zuora, SocialGold (see list here) are being assessed at multiples exceeding 100x revenue. Social gaming is the focus of many of these companies, with estimated transaction volume of around $2.2B and expected market growth of 50-80% CAGR.

    Quite exciting. Is it a “fad” and will these notional currencies be able with withstand the light of regulatory review?