PayPal and its parent eBay each expect $20 billion in mobile commerce and payment volume this year, eBay CEO John Donahoe says.
At PayPal, this volume is fueled by its partnerships in mobile payment acceptance. Donahoe casts PayPal as an ally rather than a competitor to other mobile-payments providers.
"Both retailers and brands need a partner, and that's who we are commerce is never a zero-sum game," he said in a conference call Wednesday to discuss second-quarter earnings.
Bill Me Later, PayPal's instant credit system, had "strong standalone financials" in the second quarter, says eBay CFO Bob Swan. Bill Me Later had 4.1% share on eBay in the U.S. and 1.8% in eBay's merchant services business, he says, and these factors reduced funding costs for PayPal.
PayPal's revenue rose 20%, to $1.6 billion, from a year earlier. Its number of active accounts rose 17%, to 132 million, and its net payment volume rose 25%, to $43 billion.
The PayPal Here mobile card reader is now used in six countries. The chip-and-PIN version of the reader, which PayPal debuted in the U.K., will soon be released in other countries, Donahoe says.
EBay's companywide net income declined 8% to $640 million in the second quarter from a year earlier. This reflected a gain last year on the divestiture of a business. Its revenue rose 14%, to $3.9 billion. EBay added 3 million new customers through mobile devices in the second quarter.