eBay Inc. (NASDAQ:EBAY) expects PayPal’s revenue to increase substantially. PayPal is eBay’s second largest business. This is good news for eBay since their revenue and profit dropped last quarter and their stock has been dropping since 2004.
PayPal President Scott Thomson stated that the company should double in size over the next three years. PayPal is expected to process between $100-$120 billion in annual payments around 2011. PayPal has about 70 million active users. They processed over $60 billion in transactions around 2008. PayPal is available in about 17 languages and accepts about 19 different currencies.
PayPal takes a cut from each transaction and ended up making $2.4 billion in 2008. eBay itself made about $8.5 billion. If all goes according to plan, PayPal’s expects their own revenue to increase to $4-$5 billion around 2011.
“It doesn’t matter where you go online today,” stated Thompson. “Almost everybody needs a fast, secure way to pay for something.” PayPal is still working on integrating Bill Me Later into their own service. Bill Me Later was acquired by eBay in October.