PayPal Makes eBay’s Growth Look Good
eBay Inc.’s (NASDAQ:EBAY) online payment system, PayPal, now has nearly 35 million accounts in Europe, about a quarter of the service’s worldwide total. Forrester Research also says that 23% of Europeans prefer PayPal to credit cards or alternate ways of making payments online.PayPal is looking more and more like the future driver of the company’s earnings. eBay’s revenue in 2006 was $5.97 billion. While its auction business revenue rose 24% to $4.2 billion, online payment revenue rose 40% to $1.4 billion. Active users at the auction business grew from 71.8 million in 2005 to 81.8 million in 2006, about 14%. Total number of payments made through PayPal rose 27%. Not apples-to-apples, but still a good illustration.
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