>it won't be long before the other payment processors follow the market leader Fortunately this goes both ways: On one hand, other payment processors will be

>it won't be long before the other payment processors follow the market leader Fortunately this goes both ways: On one hand, other payment processors will be able to squeeze even more revenue out of the sellers (or buyers). On the other hand, any competing payment processor will be able to collect more revenue to finance its growth, thus helping them to grow and out-compete PayPal. Contrast that with Amazon, which is ran very close to zero margins, thus making it harder for any competitors to generate growth-inducing revenue and at the same time offer competitive prices.