eBay 2004 Annual Report Download - page 9

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Value-Added Tools and Services
eBay users have access to a variety of ""pre-trade'' and ""post-trade'' tools and services to enhance their
user experience and to make trading faster, easier and safer for them. ""Pre-trade'' tools and services are
intended to simplify the listing process and include photo hosting, authentication services and seller
productivity software. ""Post-trade'' tools and services, which make transactions easier and more convenient to
complete, include payment processing, insurance, vehicle inspections, escrow, shipping and postage. We
currently provide these services directly or through contractual arrangements with third parties.
My eBay
We oÅer My eBay, which permits users to receive a report of their recent eBay activity, including
bidding, selling, account balances, favorite categories and recent feedback. Users with their own web pages
also may post links from their pages to eBay and list the items they are selling on eBay. We also oÅer About
Me, which provides users the opportunity to create their own personal home page free of charge on eBay using
step-by-step instructions. The About Me home page can include personal information, items listed for sale,
eBay feedback ratings, images and links to other favorite sites.
PayPal
Global Payments Platform
Our global payments platform, PayPal, enables any individual or business with an email address to
securely, easily and quickly send and receive payments online. Our global payments platform also makes
online trading more eÇcient compared to traditional payment methods such as checks, money orders, and
credit cards via merchant accounts. These traditional payment methods present various obstacles to the online
trading experience, including lengthy processing time, inconvenience, and high costs. PayPal delivers a
product well suited for small businesses, online merchants and individuals by allowing them to send and
receive online payments securely, conveniently and cost-eÅectively. The PayPal network builds on the existing
Ñnancial infrastructure of bank accounts and credit cards to create a global, real-time payment solution.
PayPal's account-based system is available to users in 45 countries, including the United States. As of
December 31, 2004, PayPal had approximately 64 million total accounts, comprising approximately 13 million
business accounts and 51 million personal accounts.
PayPal Services
Joining the Network
PayPal oÅers three types of accounts: Personal, Business, and Premier. A new user typically opens an
account to send money for an eBay purchase or a purchase on another website, a payment for services
rendered, or for a payment to an individual in lieu of cash. Allowing new users to join the network when they
make or receive payments encourages PayPal's natural, user-driven growth. PayPal's account sign-up process
asks each new user to provide PayPal his or her name, street address, phone number, and email address. The
user's email address serves as the unique account identiÑer. PayPal also oÅers customers who sell on their own
websites the ability to accept credit card payments from buyers without requiring the buyer to open a PayPal
account.
Senders make payments at the PayPal website, at an item listing on eBay or another online business or
platform where the seller has integrated PayPal's Instant Purchase Feature, or at the sites of merchants that
have integrated PayPal's Website Payments feature. To make a payment at PayPal's website, a sender logs in
to his or her account and enters the recipient's email address and the amount of the payment. To make a
payment through Instant Purchase or Website Payments, a sender selects an item for purchase, conÑrms the
payment information and enters his or her email address and password to authorize the payment. PayPal
debits the money from the sender's PayPal balance, credit card, or bank account and instantly credits it to the
recipient's PayPal balance. In the case of an eCheck payment, the transaction is held until the funds have
cleared the sender's bank, which typically takes three to Ñve business days. In turn, the recipient can make
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