Paypal's interest in Pinterest is another example of how payment systems see owning their own social network as a way to remain competitive.
Payment system Paypal is in talks to buy social media platform Pinterest, according to «The Wall Street Journal» (behind paywall), citing people familiar with the matter. The deal, estimated at $40 billion would give Paypal access to Pinterest’s social media network and entrench it further in the e-commerce space.
The potential in network-based business models, such as China's Wechat, has been recognized by payment companies. Banks have show interest but have been slow to act thus far.
Sharing Platforms
Pinterest is a sharing platform where users go to get or post ideas on home decor, fashion and recipes. It generates income from advertising on its website. Although the two companies do not share any commonality when it comes to their core business, bringing the two together would bring Paypal closer to customers' wallets.
Paypal, the world's largest mobile payment platform, is keen to enter e-commerce, as last month’s agreement to acquire Japanese buy-now-pay-later company Paidy shows.
