PayPal Is Keeping eBay Afloat
PayPal, the online payment processor owned by eBay, may be the big thing keeping the parent company afloat. eBay has seen a steady decline in its revenue, especially after a data breach discovered in May of this year.
According to their second quarter figures, PayPal grew by four million accounts, bringing their total number of accounts to 150 million. The company saw a growth of 29% in total payment volume and 21% in total number of payments compared to the same time last year. PayPal’s transaction related revenues increased by 18%, which is more than twice the growth rate for the industry.
PayPal’s mobile volume for third party websites is now higher than its volume from eBay, which could play an interesting role in the future of the company. eBay has admitted to being open about a potential spin off for PayPal in the future, and it appears as though the processor could very well stand on its own. But could eBay?
Analysts predict strong growth in the future for ecommerce businesses. eBay may be in a slump due to its recent data breaches, but it could very well pick up in the coming months. For now though, it looks like PayPal is its shining star.