eBay Looking to Expand PayPal's Reach

By  |  Monday, March 9, 2009 at 10:08 am

PayPalWith its auction business struggling, eBay is turning to its Paypal arm for salvation. According to an BusinessWeek article, the company plans to use its annual shareholder meeting on Wednesday to focus on its plans for its payment arm.

New eBay CEO John Donohoe has already said that he believes PayPal will overtake its auction revenues in the not-too-distant future. That wouldn’t be hard to believe either: even with PayPal’s popularity as an online payment medium, here in the US where it used the most, only 12 percent of all online payments are processed through the service.

Obviously PayPal has a lot of room to grow. So how is eBay going to do it? By going after those companies and organizations that use online payments everyday. Charities and organizations rely on a lot of online donations, and some government services allow for online payments of taxes, bills, and fines. Both could easily integrate PayPal into their offerings.

In addition, the service plans to offer an SDK of sorts to encourage developers of e-commerce apps to fully integrate paypal into their offerings, such as Apple has within iTunes. This could also increase the company’s share of online payments.

With people moving away from credit cards with the recession, using services like PayPal may make sense. Like the BusinessWeek article infers, people only want to spend the money they have. Expanding at a time like this could pay dividends later as people get used to using the service regularly.



2 Comments For This Post

  1. BEWARE of ebay & Paypal!!! Says:

    The pitfalls of Paypal and the horrible management of it’s parent company, ebay, are all under the direction of one of the most hated CEO’s in this country, as well as the other countries in which ebay Inc. operates. John Donahoe is successfully KILLING it’s core with deceitful and corrupt policies. To read what is REALLY happening to ebay & Paypal users due to ex-ebay CEO, Meg Whitman’s and current ebay CEO, Donahoe’s, “Disruptive Innovation” scheme against ebay, against it’s shareholders and against ebay members, please read these reports and the comments left by those who know ebay/Paypal best, Paypal and ebay users…leaving ebay Inc. in droves:

    How eBay is Alienating Selling Allies



    Are you an ex-eBay seller? If so, what can they do to win you back?



    Hey eBay, Say Hello to Bonanzle



    Ebay Stockholders and Sellers Calling For Immediate Termination of John Donohoe CEO



    Battle over bag: Seller loses out in online


  2. paybitch Says:

    Right now I have multiple auction wins and several eBay sellers are refusing to accept payment. Yes, you read that right: the sellers don’t want my money. When I go to pay for the items they are trying to force me to create a PayPal account that I don’t want or need. It is certainly possible to pay a seller with PayPal even if you are not a PayPal member. There is a hidden form for this purpose on the PayPal site which sellers can provide a link to. When you click on that link, the sellers account will appear on the screen. Then you just enter your name, address and credit card like you would on any normal shopping site. For some reason, most eBay sellers are refusing to use this feature–and then they complain about declining sales. They falsely claim to accept payment through PayPal, but after you win the auction they refuse to accept credit cards through PayPal. eBay could easily integrate non-member checkout into the service, but they choose not to. This policy has been exposed in the book ‘PayPal Wars’ :

    “PayPal was trying to force everyone to stop using credit cards to fund purchases.”


    Now that eBay and PayPal are one monolithic entity, the practice of discouraging credit card sales has expanded. But why? When you refuse the most popular form of payment, you drive away customers. How could they expect anything BUT a decline in sales? It’s no wonder this auction business is struggling when they make it nearly impossible for people to use a credit or debit card the way that you would at any other online store. eBay was cool when it started, but now its just an absurd, asinine way to do business. This company is sinking fast. The only way to save eBay involves getting rid of the current management.

    The 80+ Site List (80 alternatives to eBay)

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