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A sign is posted outside PayPal's headquarters in San Jose, California.
Justin Sullivan | Getty Images
PayPal is deploying a new e-commerce platform that offers small businesses the same access to online shopping infrastructure as tech giants such as Facebook.
The new platform brings together existing elements of the PayPal payments industry, allowing merchants to accept online money and buyers to check via PayPal. It also opens back-end systems such as fraud protection, account compliance and authentication, which would be expensive and "almost impossible" for a small start-up to rely on its own resources said the chief operating officer of PayPal Bill Ready.
"This is a huge and growing market and we are looking to allow even more," Ready told CNBC during a phone interview. "Vendors are trying to find a way to compete with the largest online retailers.This is a huge opportunity for them."
Instagram Checkout and Facebook Marketplace are already running on this platform. According to Ready, this is a way to expand the offering and allow businesses to have more access to the same back-end system, allowing a person to buy his social news feeds.
"There are all these new places where vendors can go to meet a customer," said Ready. "We want to democratize access to this tool so that all these millions of sellers can consult more customers online."
Online partners and marketplaces are an integral part of PayPal's business, which used to be just an ecommerce site as a payment method for eBay. In the last call for results, Ready said that PayPal's top 20 markets grew 40 percent year-on-year and reached $ 90 billion last year. Ready, former CEO of Braintree, which was later bought by PayPal, said it could also be a way to add to the 277 million current users of the company and 22 million merchants.
PayPal left eBay in 2015 and has since expanded well beyond paying online. The San Jose, California-based company relies on mobile payments, which account for about 40% of its business, and on small business loans. Its popular peer-to-peer application, Venmo, which can also be used for payment on the trading platform, now has 40 million users.
The new trading platform includes other background processes such as integration, payment and litigation management, artificial intelligence and machine fraud protection. The product will first be available in the US, UK and Europe, but over time, but Ready said that PayPal is considering expanding to all other markets where they operate.
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