PayPal Mobile Payments Skyrocket into the Billions
Try to imagine the graph here: 2009 – $141 million; 2010 – $750 million; and 2011 – $4 billion!
Those numbers belong to online payment company PayPal (NASDAQ:EBAY) and represent the annual mobile payments it handled over those years.
According to PayPal mobile vice president David Marcus, the massive growth is due to a growing acceptance of mobile commerce, a massive surge in the use of the iPad (NASDAQ:AAPL) for mobile payments, and the advent of new apps that blend offline and online capabilities. In a great example, Starbucks’ (NASDAQ:SBUX) app is hugely popular with its customers using PayPal to top up store credit.
Here’s how eBay shares reacted to the news:
eBay Inc. (NASDAQ:EBAY): EBAY shares recently traded at $31.52, up $0.32, or 1.03%. They have traded in a 52-week range of $26.86 to $35.35. Volume today was 9,364,265 shares versus a 3-month average volume of 10,939,300 shares. The company’s trailing P/E is 22.99, while trailing earnings are $1.37 per share.