EBay Inc. hopes that combining the longtime risk-management strengths of its PayPal Inc. unit with new features designed to attract new types of users will help it become the dominant online global payment brand. The San Jose, Calif.-based e-commerce company shared its plans for PayPal during an analyst presentation yesterday. John Donahoe, eBay president and CEO, described online payments as a winner-take-all market and said he expects PayPal to become one of the top global brands. That contrasts with the online retail market, where he expects eBay to be one merchant among many. "In e-commerce or shopping, we believe there are going to be multiple winners, just like there are multiple winners in offline retail," Donahoe said. "Payments, on the other hand, is also going toward its offline equivalent, where there are very few winners." In the offline world, he said, there really are only three global payment networks: Visa Inc., American Express Co., and MasterCard Worldwide. "And in the online world, we think the same thing is going to happen, where we believe there will be only one winner. And that will be PayPal." Scott Thompson, PayPal president, said PayPal's key advantages over rival payment systems are its fraud management capabilities and its global reach. "The learning curve in fraud management is steep, and as you're learning, it's very expensive," he said. Because PayPal has years of experience in screening transactions for fraud, "we can let more sales through to the merchant" than rival systems that might hold up some valid transactions during screening, Thompson said.

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