“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.