Reply #19: Paypal has competition

[Xithras]

Both Amazon and Intuit run online payment services that compete with Paypal, and Intuit's is generally cheaper. There are also a number of smaller startup competitors like Noca that are beginning to show up across the web.

The problem, at this point, is simply intertia. Paypal had so little competition for such a long time that they became the de facto standard on the Internet. There may be better competitors showing up, but it will take time for them to make any real dent in Paypal's customer base.