PayPal- eBay Split Expected to Significantly Benefit Both Companies in the Long Run

PayPal, which is one of the world's largest online payment companies, was created in 1998, had its initial public offering in 2002, and was acquired by eBay later that year. The system can be used to transfer money over the internet without the need for checks or money orders and is mainly associated with online shopping sites, where they are well-known for security and ease-of-use. In 2015, when eBay decided to make PayPal a separate entity once more, it was intended to diversify the company's investments. Now, according to James Peltz's L.A. Times article, eBay is committing deeper to that goal by cutting PayPal free from its position as eBay's primary payments processor.

For years, shoppers on eBay have been forced to use PayPal when checking out, and sellers have had to pay a commission to PayPal on top of the commission they already have to pay to eBay for using their site. eBay's relationship with Adyen, which will begin in 2020, will give customers more payment options to choose from, which will enable people to pick the one that suits them most economically. The massive online retailer also believes that the change to Adyen will create a "more seamless experience" for customers.

PayPal's stock took a dive and eBay's went the opposite direction after the announcement this week. However, analysts believe that PayPal's issues are only for the short-term. Executives have pointed out that the portion of PayPal's business connected to eBay has been steadily shrinking over the years, and that this break-up will have little impact. eBay's business was about 13% of PayPal's total volume last year (down 3% per year for the past few years). However, PayPal doesn't seem to be worried about the loss of volume. They are choosing instead to focus on profitability.

 According to PayPal executives, although the partnership with eBay had led to a large volume of money transferring for the payment company, they made very little per transaction, which didn't make it so profitable. One of PayPal's subsidiaries, Venmo, saw a huge jump in quarterly profits: 59% higher than last year, by some measurements. PayPal has other similar projects in the works that have the potential for profitability, so it seems that the split with eBay may be beneficial to both companies in the end.

***************************************************************************************************
Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

**************************************************************************************************

Comcast Replacing Cable Customers With Internet Customers

Especially in recent years, many people have been looking for clever ways to cut some of their higher utilities costs. For some, that means taking shorter showers or keeping the air conditioner off during the hotter months. Many others have found that cable is a pretty substantial monthly expense that they can go without relatively easily. "Cutting the cord," as it's commonly referred to, can save consumers well over $100 per month, depending on the package of channels they had. According to Gerry Smith's L.A. Times article, they opt instead to use their internet connections, paired with streaming services like Netflix or Hulu, to watch their favorite shows.

Comcast Inc. is just one of the many cable providers that have suffered losses to their bottom line due to the cord-cutting frenzy sweeping the nation. However, on the other hand, Comcast has also observed that as much as people are removing cable, they are getting more new customers for their internet plans. This quarter, the number of cable customers dropped yet again, but an additional 350,000 customers bought broadband internet service, which helped to balance out Comcast's profits.

People aren't only getting more into internet because of its ability to replace their cable entertainment. In the modern age, it is incredibly difficult to have a job, attend school, or do pretty much anything else without a reliable internet connection. Everything these days is online, so Comcast and companies like it are naturally going to keep getting new customers and are going to be getting demands from their customers for increased internet speeds. Some of their new features, including personalized home Wi-Fi networks, have led hundreds of thousands of new users to try out their internet connections.

Some cable giants are offering cheaper cable packages with fewer channels, which is attractive to some users. To many others, paying anything for any amount of cable is simply too much, because they can get access to anything they want to watch via the internet. Why pay more for something you can get elsewhere for less? Comcast's profits went up this year due to the influx of internet customers, and they expect to increase their shareholders' dividends by around 20% in 2018, while increasing stock value at the same time.

***************************************************************************************************
Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

**************************************************************************************************

Over 51 Million People Flying Domestically this Holiday Season

Each year, especially leading up to the month of December, people across the country frantically scour the internet for the best airplane tickets to make it home in time for the holidays. Many people want to visit with family and the 21-day Christmas travel season is when millions of Americans choose to do so. Some people choose to drive or take a bus or train, but each year, the number of fliers continues to rise. According to Hugo Martin's L.A. Times article, this season's number of fliers increased by 3.5% from the same measurement last year.

Analysts expect that there will be over 51 million people traveling via plane throughout the upcoming holiday season. Over the last four years, airplane travel has been growing, especially in the month of December, and especially during the few days leading up to and following Christmas. Research shows that the increasing prevalence of the mode of transportation is likely due to improvements in the economy and competition between airlines, which make flights more affordable for the common consumer.

The law of supply and demand states that supply and demand tend to be inversely proportional, which means that as the supply of a good or service increases, the demand for it decreases. The same concept applies to the proportionality of demand/price or the inverse proportionality of supply/price. In other words, the more consumers demand a product, the more a company can charge for it. Because there are so many companies that offer the service of airplane transportation, the competition drives the price down. As more and more consumers choose to fly because of the lower prices, however, those same prices will likely be driven back up until the price reaches an equilibrium.

Economic analysts predict that this trend will lead to a total of more than $16 billion in profit split among the various domestic carriers, 5% more than last year. Additionally, over the past three years, airlines throughout North America have earned over half of the profit in the industry as a whole. Analysts expect that things might change quickly if the airlines aren't careful. Between rising costs, taxes, and governmental security laws, the various airlines may have to quickly adapt to successfully meet growing demands and keep their competitive edge.

***************************************************************************************************
Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

**************************************************************************************************