HellPuppy, you are dead on right, gonzo and I have had some ongoing phone conversations about the whole situation...
There are two sides to EVERY payment method out there -- issuing and acquiring -- makes no difference if we are talking cash or magic beans or virtual first born children... you have to have end users who want to pay with the method and you have to have merchants willing to take it.
Paypal's problem is and was very simple. Their fraud control would make most of your hairs stand on end, once you got thru laughing. While I realize why they do it the way they do, adult is an animal that does not work in their setup, I can only begin to imagine what their csr's went through dealing with it.
They do some things exceptionally well and they've decided to focus on those profitable things, and expand on them. With 27 million registered users, they should be able to do alot more, but I can't blame them for focusing on what makes them money and dropping what does not...
|