John Donahoe Says “PayPal Is A Business That Will Be Bigger Than eBay”

Posted Jul 24, 2009

“PayPal is a business that will be bigger than eBay,” stated eBay CEO John Donahoe at the Fortune Brainstorm: Tech Conference earlier this week.  I give Donahoe credit for being honest because I believe eBay has passed its peak and now there are tons of competitors out there.  And PayPal is a rapidly growing business making billions in revenue for eBay.

PayPal made about $1.8 billion in revenue in 2007 while eBay’s total revenues were $7.7 billion.  This means PayPal made about 23.3% of eBay’s 2007 revenues.  Over the last year eBay made about $8.5 billion in revenues and I believe that PayPal made over 25% of that revenue.

PayPal also recently opened up APIs to developers.  Donahoe said that the company is not far off from the day that a restaurant will beam a bill to your mobile phone and gives the consumer the ability to pay using PayPal.