eBay 2004 Annual Report Download - page 11

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A merchant can open a PayPal account and begin accepting credit card payments within a few minutes.
Merchants are approved instantly for a PayPal account, and do not need to provide a personal guaranty,
acquire any specialized hardware, prepare an application, contact a payment gateway or encrypt customer
data. Furthermore, PayPal charges lower transaction fees than most merchant accounts, and charges no setup
fees and no recurring monthly fees.
The account-based nature of PayPal's network helps us to detect and prevent fraud when funds enter the
PayPal network, as funds move within the network, and when they leave. Sellers can also reduce the risk of
transaction losses due to unauthorized credit card use and fraudulent chargebacks entirely, if they comply with
PayPal's Seller Protection Policy.
PayPal Strategy
We seek to extend our leading position and become the online payment network of choice around the
world. To establish PayPal as the global payment standard in online payments, we will focus on, among other
things, increased adoption of PayPal on the eBay Marketplace and expansion of PayPal's merchant services,
which are services for merchants who sell through their own websites.
Increase PayPal's adoption on the eBay Marketplace
eBay.com: In 2004, the U.S. Marketplace segment of eBay generated more than $18 billion in gross
merchandise volume, which is a measure of the total value of all successfully closed listings between users on
our marketplace. We intend to strengthen PayPal's penetration into the payments area on the eBay
Marketplace in the United States by continuing to integrate with eBay listings and seeking to add product
features important to the eBay community. During 2004, we added features such as PayPal Buyer Credit and
payment for postage and shipment insurance through PayPal, we expanded the free coverage aÅorded to
buyers under the PayPal Buyer Protection Program from $500 to $1,000 per transaction (from 250 to 500
for British pound-denominated transactions), and we added PayPal Buyer Protection coverage for buyers from
qualiÑed U.K., Canadian and German sellers.
International sites: Prior to 2004, PayPal was oÅered in a local language and currency in only three
countries Ì the United States, Canada and the United Kingdom. As of December 31, 2004, PayPal was
available in a local language and currency in Ñve additional countries. PayPal plans to continue its expansion
into new countries, while innovating on the product and adding new features to increase adoption by the eBay
international community.
As of December 31, 2004, PayPal was oÅered in a local language and currency in eight markets:
‚ Austria ‚ France ‚ United States
‚ Belgium ‚ Germany ‚ United Kingdom
‚ Canada ‚ Switzerland
As of December 31, 2004, PayPal allowed its customers with credit cards to send payments from an
additional 36 markets outside of the U.S., and to receive payments in 35 of those markets. In 15 of these
markets, customers can withdraw funds to local bank accounts.
Our international expansion into an increased number of markets and currencies makes cross-border
transactions easier and more eÇcient, which beneÑts both the eBay Marketplace and PayPal.
Expand PayPal's merchant services business in the U.S.
We intend to continue to develop features and to market our global payments solution to spur our growth
as a payment solution for sole proprietors and small and medium-sized businesses. During the past year, we
added features that allow merchants to customize PayPal's payment Öows to their own websites, and to
integrate PayPal more seamlessly into their checkouts. We also completely redesigned the PayPal home page
to make it more user friendly for businesses, and rolled out a ""PayPal For Business'' campaign.
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