PayPal Seeks Market Outside of eBay
eBay acquired PayPal in 2002 for around $1.5 billion to form the backbone of it’s electronic payments system for auctions.
Since then, PayPal has grown to be a major player in the e-payments industry with over 70 million customers and some $6 billion turnover through its internet money transmission systems. This makes PayPal larger than many of the traditional banks in the e-payments sector and positions the company for growth and diversification.
Traditionally the province of major card companies such as Mastercard and Visa, the provision of services for larger merchants is an area that PayPal now seems to be eying up. In a recent announcement to analysts, Chief executive of eBay, Meg Whitman is reported as saying, "We feel confident that PayPal can become the online wallet for an entire global generation of Internet shoppers,''
Three quarters of all global eBay Auction and Shopping transactions use PayPal – and that customer base is where PayPal’s strength and aspirations for growth should perhaps be centred. The increasing globalisation of eBay has provided a firm consumer-driven base that could be groomed to demand the familiarity and convenience of PayPal in purchasing transactions outside of eBay. In effect, eBay would be PayPal’s “Trojan Horse” to enter the still-emerging e-funds markets in places such as India and China – two of eBay’s main targets for major growth.
Since then, PayPal has grown to be a major player in the e-payments industry with over 70 million customers and some $6 billion turnover through its internet money transmission systems. This makes PayPal larger than many of the traditional banks in the e-payments sector and positions the company for growth and diversification.
Traditionally the province of major card companies such as Mastercard and Visa, the provision of services for larger merchants is an area that PayPal now seems to be eying up. In a recent announcement to analysts, Chief executive of eBay, Meg Whitman is reported as saying, "We feel confident that PayPal can become the online wallet for an entire global generation of Internet shoppers,''
Three quarters of all global eBay Auction and Shopping transactions use PayPal – and that customer base is where PayPal’s strength and aspirations for growth should perhaps be centred. The increasing globalisation of eBay has provided a firm consumer-driven base that could be groomed to demand the familiarity and convenience of PayPal in purchasing transactions outside of eBay. In effect, eBay would be PayPal’s “Trojan Horse” to enter the still-emerging e-funds markets in places such as India and China – two of eBay’s main targets for major growth.
