Our comments and trackback policy You Link We Follow, You Comment We Promote
PayPal an online payment company that has grown upon the success of eBay has finally decided to walk a different path as reported by Cnet.
The company has decided to juice out more payments from its Merchant services rather than from eBay’s sellers and buyers. The name, Merchant services is that given to the payment software provided by PayPal to other companies like, Starbucks, etc for their online payments. That is a pretty huge leap for a company that was acquired by eBay about six years back.
PayPal President, Scott Thompson said at RBC’s Capital Markets Conference that the change had come in time and not earlier as PayPal already faced serious competition form Google Checkout and even Amazon.com (which is pretty new at this). He added:
We’ve had organic growth with eBay, but as merchants migrated off the eBay platform (by building their own sites), they’ve brought us with them.
Now this is underlined by PayPal’s current success; which has been more than impressive. PayPal serves around 33% of the top 100 e-commerce sites in the US alone and had generated total revenue of $602 million in its second quarter, with a total payment volume growing by 35% or $14 billion in cash.
Those numbers were for the US alone; Thompson sounded confident about the international growth as well and estimated the international business to exceed that of the US. He stated:
By the back half of 2009, the international business will exceed our North American business.
The company has been stepping up its efforts for mobile but there hasn’t been much success in the US. Though the company has revised its strategy and shifted it towards underdeveloped markets like China and Russia where the need for such a service is direly needed. Let’s just hope that this break away proves more successful for PayPal.
