eBay with high hopes for PayPal
February 11, 2011
EBay has claimed that its online payments unit PayPal will surpass its current marketplace division in three years, as the online auction site is cast as an innovator by executives. After the announcement at a meeting at the company’s headquarters in California, shares in eBay jumped nearly eight percent.
In the past two years eBay has managed to shed the image of an internet has-been by promoting PayPal to businesses and new consumers who have been using the service more frequently. Investors, however, are still concerned about the regulatory and competition environment for the payment processor.
Investors also feel that the website must move from a unit that connects buyers and sellers online to a service at the forefront of innovation, shopping and payments. The company believes that such efforts could see total share revenues rise from $13 billion to $15 billion over the next two years.
EBay Chief Executive John Donahoe explained at the meeting that the market is changing as more people use smartphones to shop on the go. He claimed that the company is driving a new generation of e-commerce thanks to the new global opportunities available.