EBay and PayPal Mobile Payment Forecasts Soars Into Billions
John Donahoe, eBay CEO and interim PayPal CEO, projected soaring numbers for new mobile payment forecasts. During his keynote speech at the Consumer Electronics Association, Donahoe predicted that eBay would reach $8 billion in mobile gross merchandise volume (GMV) this year, almost double its $5 billion GMV we reported from last year. Reasons for the growth include a growing acceptance of mobile commerce, a surge in iPad use for mobile payments, and new apps that blend offline and online capabilities.
PayPal’s projected numbers look even better at $7 billion, a 75 percent increase over last year. 2011 was still a good year for the online payment company as it surpassed its $3.5 billion expectations to reach $4 billion in mobile payments. Although its sales are rising twice as fast as eBay’s, PayPal Chief Scientist Moh Ok told our audience at ILM West that both companies are “laser focused” on commerce.
Donahoe also announced its new strategic partnership with eBay’s RedLaser barcode scanning app — Best Buy. Last year, the app was updated to include PayPal and Milo integration that gives users the ability to buy on the spot for either in-store pickup or at-home delivery. EBay is expected to post 57 cents a share in earnings on $3.32 billion in revenues during its Q4 earnings call next week.