eBay Inc (NASDAQ:EBAY)’s PayPal business, due to be spun off later this year, is experiencing “phenomenal growth” in markets outside of the U.S., Hill Ferguson, PayPal Senior Vice President, Global Consumer Business, says in a report on CNBC’s Nightly Business Report.
The remark by the executive for the eBay Inc (NASDAQ:EBAY)-owned business were made in a report about mobile payments by Josh Lipton. In the report, Lipton notes that PayPal is the dominant player in the peer-to-peer mobile payments industry.
“We are still in the early days of building our network around the world. We launched in Russia last year. We have been in Brazil for a few years. We’re in India and China and so we are really starting to get more inroads into some really big markets outside the U.S. and the growth rates are phenomenal,” Ferguson says.
According to Lipton, mobile payments is set to more than triple to $17 billion by 2019 based on data from Forester Research.
The appeal of mobile payments is its ease of use, the CNBC reporter notes. Why would someone want to carry around a checkbook to write a check for a friend when they can send payments just by using an application on their phone which they carry around anyway even without the payment apps in them. This is why eBay Inc (NASDAQ:EBAY) with PayPal and other big technology names are making moves in this industry.
According to Lipton, eBay Inc (NASDAQ:EBAY)’s PayPal does not break down how much revenue the business generates from peer-to-peer services. However, the company does reveal they are the conduit to billions of dollars of transactions every year.
However, though easy to use, Lipton says that one area users are concerned in about mobile payments is security. Furthermore, as James Wester, IDC Global Payments Research Director, notes in the report, people will have to get used to scanning their fingers, and their facial features, as companies like Apple Inc. (NASDAQ:AAPL) and Alibaba Group Holding Ltd (NYSE:BABA) respectively want them to do to secure payments.
Carl Icahn’s Icahn Capital LP owned about 46.27 million shares in eBay Inc (NASDAQ:EBAY) by the end of 2014. Icahn is the activist investor who has vocally pressured the electronic commerce company to spin off PayPal, a process that’s expected to conclude in the second half of 2015.
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