eBay 2008 Annual Report Download - page 17

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Bill Me Later’s alternative payment solutions help multichannel retailers to attract, satisfy and retain
customers at the point of sale. Through this offering, we believe that merchants can make successful real-time
retailing decisions, and that multichannel online retailers of all sizes can develop an effective payments strategy and
increase sales and satisfaction by providing consumers with the secure, convenient and flexible payment choices
they demand. The Bill Me Later payment solution is available on the websites of more than 1,000 online stores,
catalogs and travel partners, including Borders, Blue Nile, Bluefly, Continental Airlines, eLUXURY, Fujitsu,
JetBlue, Overstock, QVC, Toshiba, Toys “R” Us, U.S. Airways, Walmart.com and Zappos.
Payments Growth Strategy
We seek to become the online payment solution of choice around the world through our focus on simplifying
and improving the customer experience, striving to be the most secure method of payment on the Internet,
enhancing our product offering for our merchants and utilizing multiple sales channels. To establish PayPal and Bill
Me Later as the online payment solution of choice, we intend to continue focusing on increased user adoption of
PayPal on our Marketplaces platforms, continued expansion of PayPal’s Merchant Services business and our
financial products business, and expanding the offerings of Bill Me Later, including as a funding source for PayPal
accounts, as well as on an increasing number of merchant sites, including the eBay Marketplace.
Marketplaces
PayPal’s services are integrated into the checkout flow of the eBay.com platform in our key markets, including
the U.S., Germany, the U.K. and Canada. In 2008, eBay.com generated approximately $59.7 billion in GMV.
PayPal, in turn, generated approximately $30.4 billion of net Total Payment Volume from eBay.com transactions,
which represented approximately 51% of PayPal’s net Total Payment Volume during 2008. Net Total Payment
Volume is the total dollar volume of payments, net of payment reversals, successfully completed through our
Payments system, excluding PayPal’s payment gateway business.
We intend to increase PayPal’s penetration of GMVon the eBay.com platform globally by continuing to integrate
PayPal with eBay listings and new formats, including our adjacent Marketplaces businesses, focusing on buyer and
seller protection programs and adding product features and innovations important to the Marketplaces community. We
believe that our expansion into an increased number of international markets and currencies will continue to make
cross-border transactions easier and more efficient, benefiting both our Marketplaces and Payments segments.
PayPal Merchant Services
Our Merchant Services business offers a differentiated product solution for each merchant category, while
providing a cost-effective and secure payment solution across all categories. In 2008, PayPal expanded its presence
to ecommerce websites such as those of American Airlines, Omaha Steaks, Walmart.com, Zappos, BBC, Vodafone,
Deutsche Post and Ferrari. We intend to continue to market our global payments solution to spur our growth as a
payment solution off of eBay.com for sole proprietors and small, medium and large businesses.
We also intend to grow our Merchant Services business by enhancing our product offerings and leveraging our
multiple sales channels to expand our network of merchants globally.
Payments Financial Products
We will continue to identify transactions and markets not served adequately by existing payment systems and
seek to develop product features that improve upon those legacy systems. In addition, we intend to expand the
breadth of products and services available to our account holders and to continue offering financial products such as
the following:
• PayPal ATM/Debit Card/Prepaid card, which enables business users to withdraw funds from their PayPal
accounts at ATMs, pay for offline purchases with funds from their PayPal account, and in the U.S. qualify to
receive cash back on eligible purchases;
• PayPal Plus Credit Card and eBay MasterCard issued by GE Money Bank, which allow users to earn rewards on
purchases made offline or using PayPal, as well as a PayPal Credit Card offered to U.K. users through GE Money;
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