PayPal is expected to become eBay's largest business

According to foreign media reports, eBay's online payment service "PayPal" last week announced to open a platform for third-party developers, which could help it become eBay's largest business. Meanwhile, eBay executives also have high hopes for PayPal business, CEO John Donahoe hopes that it will go beyond its online trading business.

Most people know eBay is an online trading platform, but shortly after, eBay's largest business is likely to be online payment service PayPal which was an acquisition in 2002. Over the past two years, eBay has been working to consolidate market share, hoping to win more trust buyers, meanwhile improving the appearance of the site.

At the same time, as more and more consumers and businesses choose online payment platform, although facing the competition of Amazon.com and Google.com online trading services, as well as overall economic situation in the doldrums, eBay's PayPal business remains a stable growth trend. In order to consolidate the advantage, last week, PayPal announced that open its system to third-party developers, which means that PayPal can be built into the various applications. For instance, an iPhone user can use the phone ordering a takeaway pizza at the same time pay for it through PayPal.

PayPal considers itself as buyers’ online wallet. Users create their own PayPal account, and bound it with bank accounts and credit cards and then can easily cash into the account. In this way, the user can cash balances or overdraft credit card with their own bank accounts through PayPal online payment system, moreover, in this way, and the buyers’ disclosed personal information is nothing but e-mail address or phone number only, which will make some users at ease.

In addition, each country's e-commerce rules are also not the same. In this case, PayPal has successfully lobbied the Governments to accept 24 different cash settlement, even market analysts believe that Google.com and Amazon.com can not yet pose a threat to PayPal.

EBay CEO John Donahoe also has high hopes for PayPal. He is expected it to surpass eBay's PayPal online transaction because the PayPal provide service for the whole e-commerce market, but eBay is only one of the Internet auction sites. Donahoe said in an interview: "In the next three to five years, PayPal can achieve even greater development." Donahoe thinks that despite PayPal service gets lower margin, but its profits will eventually be more than online transactions.

To a large extent, PayPal's development opportunity is that it opens a platform to third-party developers. PayPal President Scott Thompson said that as the consultation with the banking regulators and prevention of fraud considerations, this process has continued for two years. However, analyst at Janney Montgomery Scott Shawn Milne, said after opening platform, PayPal almost has no costs.

As a professional China wholesaler focusing on overseas market, PayPal is one of the most use ways of online payment used by epathchina.com. Epathchina.com is pleased to see the great progress PayPal achieved. Epathchina.com also hopes that PayPal will provide higher quality service for users.