EBay, PayPal to transact $10B each in mobile payments this year
During eBay’s earnings call on Wednesday, John Donahoe, president/CEO of eBay said that eBay and PayPal’s expected $10 billion in volume transactions this year will be more than double what the companies saw last year. The results are proof that that there is a staggering surge in mobile shopping and payments, which did not exist years ago.
“We delivered a great second quarter, driven by eBay Marketplaces’ best performance in years, strong growth at PayPal and strong same-store-sales growth for GSI’s large retail customers,” Mr. Donahoe said during eBay’s second quarter earnings call.
EBay lets users buy and sell on its platforms around the world.
EBay’s investment in mobile is clearly paying off.
During the earnings call, eBay reported strong results for the second quarter of 2012, with revenue up 23 percent to $3.4 billion, compared to the second quarter of 2011.
Sold items increased 20 percent compared to the second quarter of last year.
In addition, mobile volume is expected to double in 2012 versus 2011.
According to eBay, sellers are listing 1.9 million items on mobile devices each week.
A vast amount of purchases are occurring via eBay Mobile.
For example, a woman’s handbag is purchased every 30 seconds via eBay Mobile and more than 8,200 cars and 340,000 car parts are sold each week through eBay Mobile.
EBay also reports that 600,000 new customers in the second quarter of 2012 made their first purchase through eBay mobile.
Additionally, the company is seeing a lot of success with its mobile applications.
To date, downloads of eBay’s suite of mobile apps have surpassed 90 million globally since its debut in the third quarter of 2008.
PayPal for all
PayPal also announced three important updates during the second quarter earnings results.
The company’s revenue increased 26 percent year-over-year.
Additionally, for the third consecutive quarter, more than half of PayPal’s revenue came from outside the U.S.
According to PayPal , there are now 113.2 million active registered accounts – a 13 percent increase over the second quarter of 2011.
Moreover, PayPal’s net total payment volume grew 20 percent year-over-year to $34.5 billion.
PayPal increased its penetration on eBay and benefited from strong merchant and consumer adoption.
Furthermore, merchants are also responding favorably to PayPal’s initiatives. In the second quarter of this year, PayPal announced 15 retailers in addition to Home Depot who will be implementing its point-of-sale product.
“Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay,” Mr. Donahoe said.
Rimma Kats is associate editor on Mobile Commerce Daily, New York