PayPal Expects to Top $10 Billion in Mobile Payments This Year
eBay expects its PayPal subsidiary to exceed $10 billion in mobile payments for fiscal year 2012, said CEO John J. Donahoe in an earnings call for the San Jose-based company Wednesday. PayPal reported net earnings of $1.4 billion on $35.2 billion in total payments for Q3 2012 and now counts 117 million active users across the globe. Bill Me Later, PayPal’s layaway option, accounted for $775 million of the total.
“Consumers are choosing PayPal Mobile because it offers a unique, easy and safe way to pay on a mobile device. And merchants are finding that putting PayPal on their mobile experiences drives higher checkout conversion and higher sales,” said Donahoe.
Ten major retailers now have PayPal at points of sale across 7,000 locations. Twenty more retailers are expected to sign on before year’s end, according to Donahoe. PayPal also announced a partnership with Discover this past quarter that will provide access to more than 7 million merchants beginning in the spring of 2013. In-store use of PayPal has been 30% card-based versus 70% mobile device-based, said Donahoe, adding that this was “frankly what we thought it would be. It’s just such an easy, simple way to pay.”
PayPal Here, a credit-card reader and management tool for small business, is available in five US markets, and at AT&T stores nationwide.
eBay was founded in 1995. Its combined businesses generated net revenues of $3.4 billion in Q3 2012.
