Despite increasing problems with the sales in its online marketplace, eBay Inc is making a different kind of progress through its online money transaction service called PayPal, which is set to overshadow its mother company’s revenue in the coming months.
For the past two years, eBay has been trying to find a remedy to its ailing online auction website, which continues to worsen despite the end of the recession.
But with the recent surge in the number of people using PayPal for all their money transactions, eBay is now eyeing expansion plans that could reestablish its place in the online community.
Launched in 1998, Paypal has steadily become more and more popular to the online community as mobile technology also improves. In the third quarter of 2009, the money service website reported $688 million revenue, overshadowing the previous year record by 15 percent.
Also, from 65 million active users, PayPal has now more than 78 million.
PayPal has become famous among online shoppers and people who want to send money to their love ones because of its easy use, easy pay interface, which literally turned itself into the buyers’ online wallet.
Users will just have to setup an account in the website (paypal.com) and then link their PayPal IDs to their private bank accounts and credit cards, making it easier to buy goods and transfer money online.
Bills payment and other shopping lists are now easier to pay as long as the users have an outstanding cash balances in their PayPal accounts or they can charge their online shopping directly to their credit cards.
Money transfer is also as quick as one click of the mouse. All the users need is an e-mail address and the correct identity of the person receiving the amount.
One more thing that made the online money service scheme popular among users is its safety features. User accounts and passwords are protected as long as users keep it by themselves. It is also harder to hack, making it cybercriminal-proof.
Also, PayPal does share vital information to merchants unlike most credit and debit card holders.
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