n late$2009,$ Amazon introduced$$ PayPhrase, an electronic payments system intended to compete with PayPal. Less than three years$$ later, in early$2012,$ Amazon discontinued the program. PayPal is by far the largest electronic payments

system.

Which of the following is not a problem that competitors might encounter in trying to set up a competing$$ system?

A$.$

Paypal has an established history of insuring users receive payments or crediting accounts if payments are not received. A new system would not have the same confidence from users at the beginning.

B$.$

Paypal is widely accepted and used by many people and firms. A new system would have to start with zero users and slowly encourage people to use a system that is only available to a few users.

C$.$

Paypal may have cost advantages over a new competitor because of economies of scale. It may be difficult for a new system to compete with$$ Paypal's established set of fees.

D$.$

Paypal is a well established company that already meets the necessary government regulations. A new system may find it difficult to get all of the necessary government approvals.

Which of the following is not a problem that competitors might encounter in trying to set up a competing system?

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