Today in APIs: Paypal eBay Relationship Hampered by API

Paypal spun out from eBay partly over conflict created by API strategy. Message Systems updates Momentum with new API capabilities. Plus: Apigee named a leader in API management, and Ziftr's API for accepting cryptocurrencies.

Paypal eBay Relationship Hampered by API

PayPal is being spun off from eBay as the consumer transaction space heats up after the announcement of Apple Pay. But does that make sense, and what caused it? If PayPal is as threatened by Apple Pay as some pundits believe, wouldn't it make sense for it to stick with it's large and healthy business partner rather than be split off? Further, spin offs are often done to unlock value that investors can't measure accurately in a conglomerate. But if PayPal is perceived as threatened, how will that spin off go? The real reason for the split may reveal interesting lessons for business strategy around APIs.

Paypal graphic

As Ruth Reader reports in Venturebeat, the cause of the split might not be the desire to unlock value but could have been fallout from the conflict of interest that the PayPal/eBay relationship set up over PayPal's ecommerce API.

Over the years, PayPal has grown its payment processing API for e-commerce sites, but that API hasn’t caught on with e-retailers that view eBay as a competitor. In this way, eBay has stifled PayPal’s potential opportunity. Alibaba, for example, uses Alipay for payment processing.

In other words, the split makes sense as a strategic move, so that it can focus on expanding the adoption of its API unfettered by its connection to what its customers see as an ecommerce competitor.

New APIs Announced by Message Systems for Momentum

Email management company Message Systems is updating its Momentum Platform to help email senders extend their international reach by making it possible to jump outside the ASCII repertoire in header fields. As the company explained, the new release includes TLS Encryption among other capabilities:

The latest version of Momentum features enhanced message generation and list management APIs, providing users greater flexibility and simplicity in the triggering and creation of multipart messages. Additionally, Momentum improves access to data generated during the course of messaging operations through either the use of Webhooks or a new Metrics API. These powerful APIs allow senders to create, deliver and analyze messages more quickly and then iterate based on the results. Momentum's interface has also been updated, allowing for easier, centralized management of multipart and multichannel templates.

Momentum 4.1 includes support for SMTPUTF8, which is the email address internationalization extension to the SMTP protocol, allowing the sending of emails to non-western recipients.

API News You Shouldn't Miss

Be sure to read the next Payments article: PayStand Releases API Allowing Developers to Build Apps That Accept Bitcoin, Digital Payments