Things have changed at PayPal in the last year, with the e-commerce payments player realizing that it has to play nicely with others if it wants to grow its markets beyond e-commerce revenue. But only a handful of banks have evolved their view of the situation, realizing the next generation of consumer payments is theirs to lose.
PayPal's new normal includes a decision last fall to open its platform to outside developers, iPhone style. Around the same time, PayPal bulked up on banking expertise, hiring senior executives from Wachovia, Citigroup and Barclays, each reporting to PayPal President Scott Thompson. But even with these overtures, it was still a surprise in November when S1 and FIS both announced that their P2P offerings would run on PayPal's rails and be "Powered by PayPal."