3 ms·

I think you're a little bit crazy to think PayPal terminates business customers, who would otherwise be generating significant revenue for PayPal in transaction

• malandrew 14y ago
  The number of legitimate business customers that are terminated is very very small relatively to the amount of money they are generating on this. I used to handle the investment of negative working capital in short term T-bills at a social gaming publishing company I used to work for. When we become really profitable, asked me to figure out what we should do with the money that we didn't have pay developers for 90 days. I don't remember the exact figures, but with a $4-5 million/month run rate, the 90-days of interest on 50% of it which was paid to developers earned us a significant sum in pure profit relative to the net profits from our core business of game publishing. We were investing in 60/90-day Brazilian T-bills at the time because that is where we were earning the money, so the interest earned was much higher than what you can currently earn on short term securities in the US, but when you are handling the quantities of money eBay is handling, the amount of interest that can be earned on 30/60/90-days securities is very very large. This same approach applies to the money Groupon holds that belongs to small businesses. Whatever amount isn't being used to pay operating expenses is probably invested in some sort of short term securities.
  • deleted 14y ago
    [deleted]