The news comes after a study from Forester Research predicted that mobile commerce will total $6 billion in 2011 and hit $31 billion by 2016. Therefore, Paypal will be responsible for half of all generated mcommerce revenue.

Mobile payments
In addition to the new projections, PayPal also said the company sees up to $10 million in mobile total payment volume a day, an increase from the $6 million Paypal reported in March.

PayPal currently has eight million mobile customers who make regular purchases on their mobile devices.

The company claims that merchants see sales increase by 37 percent when using PayPal’s mobile platforms.

For example, electronics retailer Crutchfield saw a 33.7 percent jump in conversion rates after the retailer began using PayPal’s services on its mobile site.

Last year, more than 5 million customers used PayPal’s mobile products, generating $750 million in total payment volume. And the payments service continues to expect that consumers will ramp up shopping with their mobile phone and devices.

Mobile money makers
Even though PayPal has seen an increase in sales, it still faces stiff competition in the mobile payments industry.

Recently, Google announced Google Wallet, a payment system that lets users pay for items on their mobile devices.

Additionally, Isis is planning to roll out its mobile commerce program during the first half of 2012 to let users purchase and redeem offers on their phones.