Mobile Channel Growth at eBay and PayPal

by Mercator Advisory Group 0

At this week’s CES show in Las Vegas, eBay CEO John Donahoe forecast eBay’s gross merchandise volume (via the mobile channel) to reach $8 billion in 2012 and PayPal’s payment volume to jump to $7 billion, an increase of $3 billion over PayPal’s 2011 mobile payment volume.

During 2011 PayPal revised, upwards, its mobile payment forecast three times. Reaching the $4 billion mark in October exceeded the company’s last projection of over $3.5 billion.

The mobile channel shift is well underway. In three years, we won’t be so concerned about relative volumes of the device type originating these e-commerce transactions because so much will be mobile. We will be far more interested in where the payment credentials are stored, what authentication tools are used, and, more important, who the business partners in the transaction are.

He also projected yesterday that eBay would reach $8 billion in mobile GMV in 2012, and PayPal will reach $7 billion in transactions in 2012. eBay Mobile currently has more than 65 million downloads of eBay’s mobile applications across platforms. And more than 890,000 new eBay shoppers made their first eBay purchase through the company’s mobile apps in 2011, a 113% increase year over year.

Donahoe also announced a new strategic partner in eBay’s RedLaser barcode scanning app—Best Buy. The app was updated last fall to include integration from PayPal and Milo to give users the ability to buy now for either in-store pick-up or home delivery later. Yesterday, Best Buy was revealed at as RedLaser’s newest partner (joining Toys R Us).

Click here for more: http://techcrunch.com/2012/01/12/ebay-forecasts-8b-in-mobile-commerce-volume-in-2012-paypal-will-reach-7b/