I posted this on my other blog a few weeks back, then thought it would be more relevant over here. So, without further adieu...
Reading this at Venture Beat just annoyed the crap out of me: GlassUp raised $100K on Indiegogo — but PayPal is refusing to pay up. This isn’t the first time PayPal has dealt with similar issues, even to the point where their president publicly intervened in a resolution. This troubles me regarding PayPal’s future.
These rules need to significant repair if PayPal wants to remain relevant in this space. StartUps, heck, any business CANNOT operate with random and inconsistent access to funds. I think PayPal’s growth as a purchase transaction processor might be the root of these aggravations. At a brief glance, I see vigorous efforts to protect buyers from fraud. Noble, but hampering these transactions that vary from that model. Policies need to evolve with market changes. Especially market shifts that reflect your company’s goals and objectives.
David Marcus has publicly tried to change this, to better align themselves with the startup community’s needs. However, high profile breakdowns like this run the risk of major damage to the brand. And, I guarantee you that someone out there is getting ready to come in and out innovate PayPal.
PayPal has been a disruptive innovator in their field, and have brought a lot of value. However, these gaffs have eroded trust and that goodwill will be hard to earn back. These are ripe fields for competitors to come in and win.
<updated content> PayPal has made a updates to their service plan, and I haven't had the chance to review them yet. I recognize the importance of that so will do so soon.