eBay 2010 Annual Report Download - page 16

Bill Me Later accounts are most commonly opened on a U.S. merchant website offering Bill Me Later as a
payment method, including eBay.com, but can also be opened via a qualified PayPal account or at the Bill Me
Later website. A buyer enters his or her birth date and the last four digits of his or her social security number and,
subject to credit approval by the chartered financial institution, a Bill Me Later account is opened with the
chartered financial institution for the buyer. This account can be used on U.S. merchant sites that accept the Bill
Me Later payment option, as a payment method in a qualified PayPal account for certain merchants in the U.S.
who accept PayPal, or on eBay.com in cases where sellers accept the Bill Me Later payment option or accept
PayPal. Once established, customers can then manage their accounts online with access to their transaction
history and monthly statements and can elect to establish recurring electronic monthly payments.
Bill Me Later earns revenues in several ways:
• Bill Me Later earns interest and late payment fees as a result of its purchase of receivables originated
by the chartered financial institution; and
• Bill Me Later earns fees from merchants who use the Bill Me Later service.
Bill Me Later’s alternative payment solution is designed to help retailers with an online presence attract,
satisfy and retain customers at the point of sale. Through this offering, we believe that online retailers of all sizes
can develop an effective payments strategy designed to increase sales and satisfaction by providing consumers
with secure, convenient and flexible payment choices.
Payments Growth Strategy
We seek to become the online and mobile 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 offerings for our merchants and utilizing multiple sales channels. To establish
PayPal and Bill Me Later as the online and mobile payment solutions of choice, we intend to continue focusing
on increased user adoption and usage of PayPal on our Marketplaces platforms, continued expansion of PayPal’s
Merchant Services business and our financial products business, expanding the offerings of Bill Me Later,
including as a payment method for PayPal accounts, and increasing adoption of Bill Me Later on merchant sites,
including the eBay Marketplace.
PayPal Merchant Services
Our Merchant Services business offers a differentiated product solution for different categories of
merchants, while providing a cost-effective and secure payment solution across all merchants. We intend to
continue to market our global payments solution in geographies where we are already present and to add
geographies to spur our growth as a payment solution off of eBay.com for sole proprietors and small, medium
and large businesses.
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 2010, eBay.com generated approximately $61.8 billion in GMV.
PayPal, in turn, generated approximately $34.7 billion of net total payment volume from eBay.com transactions,
which represented approximately 38% of PayPal’s net total payment volume during 2010. Net total payment
volume is the total dollar volume of payments, net of payment reversals, successfully completed through PayPal’s
payments network or on Bill Me Later accounts, excluding PayPal’s payment gateway business.
We intend to continue to increase PayPal’s penetration of GMV on the eBay.com platform globally by
continuing to integrate PayPal with eBay listings and new formats, including our adjacent Marketplaces
businesses, focusing on PayPal buyer and seller protection programs and adding product features and innovations
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