eBay, next kid on the block?
eBay is at the crossroads of several activities linked with our industry. eBay is the #1 marketplace in the world with US$ 60 billion (EUR 46 billion) Gross Merchandise Volume (GMV). EBay in itself generated US$ 5.6 billion (EUR 4.3 billion) in revenue in 2008, with a 14% CAGR (Compound annual growth rate) between 2006 and 2008. eBay counts about 86 million active users worldwide.
PayPal generated US$ 2.4 billion (EUR 1.85 billion) in revenue in 2008, with a 29% CAGR between 2006 and 2008. eBay counts about 70 million active users worldwide. PayPal realized US$ 60 billion (EUR 46 billion) Total Payment Value (TPV) in 2008.
eBay ambitions to grow PayPal as its second core business, and to make it bigger than eBay marketplace. The company positions PayPal as “the leading global online payment network”. PayPal has been building upon the limits of traditional payment networks, thanks to its worldwide accessibility. PayPal has the same reach as the internet: 1.4 billion global internet users. PayPal is present in 190 global markets, with 17 local language sites and 19 currencies. PayPal runs 70.4 million active accounts in 2008, +23% vs. 2007. PayPal’s Total Payment Volume was US$ 60 billion (EUR 46 billion) in 2008, +25% vs. 2007, and the company announces ambitions to reach US$ 100 to 120 billion (EUR 77 to 93 billion) in 2011.
PayPal has plans for the mobile market. The company just announced a new partnership with Research In Motion that makes PayPal an option for buying apps for BlackBerry devices. And for the future, the objective is to make PayPal available on billions of lower-end phones that lack net access, regardless of their owners having credit cards or bank accounts. Building up on its experience with "PayPal Mobile Checkout", an experiment run in 2007 (cf. Smart Insights #07-14) PayPal is currently working on a software developers' kit that will allow third parties to develop payment applications on mobile phones.
PayPal just announced it was joining OpenPlatform, the international specification body for smart card infrastructure, as a Participating Member. PayPal will play an active role in GlobalPlatform’s Card Committee and its various working groups. Representatives from PayPal will have the opportunity to participate fully on the GlobalPlatform Advisory Council and within the organization’s Task Forces, including the important Mobile Task Force.
Skype generated US$ 551 million (EUR 425 million) revenue in 2008 with a 68% CAGR between 2006 and 2008. More than 100 billion Skype minutes have been sold to around 400 million registered users worldwide. So far, Skype is a strong standalone business, with one of the fastest growth in history: adding 350,000 users each day.