EBay (EBAY)

 

Buyers make payments at the PayPal website, at the eBay.com website, or at the websites of merchants that have integrated PayPal’s Website Payments or Express Checkout features. To make a payment at PayPal’s website, a buyer logs in to his or her account and enters the recipient’s email address and the amount of the payment. To make a payment through eBay.com or merchant websites, a buyer selects an item for purchase, confirms the payment information and enters his or her email address and password to authorize the payment. The buyer chooses whether PayPal debits the money from the buyer’s PayPal balance, credit card, or bank account and the payment is then credited to the recipient’s PayPal balance. In some bank account payments (which we call eCheck payments), the transaction is held until the funds have cleared the sender’s bank, which typically takes three to five business days. Once the payment is completed, the recipient can make payments to others or withdraw his or her funds at any time via check (in the U.S.), electronic funds transfer, a PayPal-branded debit card (which is only available to U.S. users), a prepaid card (in the U.K.), or through a credit to a recipient’s credit card account (in limited markets).

 

PayPal earns revenues in several ways:

 

 

PayPal incurs funding costs on payments at varying levels depending on the source of the payment. Funding costs associated with credit card and debit card funded payments are significantly higher than bank account or balance-funded payments. U.S. account holders who choose to maintain PayPal balances in U.S. dollars have the ability to sweep balances into the PayPal Money Market Fund. This Money Market Fund, which is invested in a portfolio managed by Barclays Global Fund Advisors, bore a current compound annual yield of 0.52% as of February 12, 2009.

 

Buyers make payments at the PayPal website (including for items listed on eBay.com by sellers that accept PayPal as a payment method), at other online businesses or platforms where the seller has integrated PayPal’s Instant Purchase feature, or at the websites of merchants that have integrated PayPal’s Website Payments feature. To make a payment at PayPal’s website, a buyer logs in to his or her account and enters the recipient’s email address and the amount of the payment. To make a payment through Instant Purchase or Website Payments, a buyer selects an item for purchase, confirms the payment information and enters his or her email address and password to authorize the payment. The buyer chooses whether PayPal debits the money from the buyer’s PayPal balance, credit card, or bank account and the payment is then credited to the recipient’s PayPal balance. In the case of an eCheck payment, the transaction is held until the funds have cleared the sender’s bank, which typically takes three to five business days. In turn, the recipient can make payments to others or withdraw his or her funds at any time via check (in the U.S.), electronic funds transfer, or a PayPal-branded debit card (which is only available to U.S. users).

 

PayPal earns revenues in several ways. First, PayPal earns transaction fees when a Business or Premier account receives a payment. Second, PayPal earns a foreign exchange fee when an account holder converts a balance from one currency to another. Third, PayPal earns fees from merchants who utilize PayPal’s online payment processing services. Fourth, PayPal earns fees when a user receives payments from outside the U.S. Fifth, PayPal may earn fees when a user withdraws money to a non-U.S. bank account, depending on the amount of the withdrawal. Sixth, PayPal earns a return on certain customer balances. Finally, PayPal may earn ancillary revenues from a suite of financial products, described below.

 

PayPal incurs funding costs on payments at varying levels based on the source of the payment. Costs associated with credit card and debit card funded payments are significantly higher than bank account or balance-funded payments. U.S. account holders who choose to maintain PayPal balances in U.S. dollars have the ability to sweep balances into the PayPal Money Market Fund. This Money Market Fund, which is invested in a portfolio managed by Barclays Global Fund Advisors, bore a current compound annual yield of 3.62% as of February 14, 2008.

 

 

Buyers make payments at the PayPal website (including for items
listed on eBay.com by sellers that accept PayPal as a payment
method), at other online businesses or platforms where the
seller has integrated PayPal’s Instant Purchase feature, or
at the websites of merchants that have integrated PayPal’s
Website Payments feature. To make a payment at PayPal’s
website, a buyer logs in to his or her account and enters the
recipient’s email address and the amount of the payment. To
make a payment through Instant Purchase or Website Payments, a
buyer selects an item for purchase, confirms the payment
information and enters his or her email address and password to
authorize the payment. The buyer chooses whether PayPal debits
the money from the buyer’s PayPal balance, credit card, or
bank account and the payment is then credited to the
recipient’s PayPal balance. In the case of an eCheck
payment, the transaction is held until the funds have cleared
the sender’s bank, which typically takes three to five
business days. In turn, the recipient can make payments to
others or withdraw his or her funds at any time via check (in
the U.S.), electronic funds transfer, or a PayPal-branded debit
card (which is only available to U.S. users).

 

PayPal earns revenues in several ways. First, PayPal earns
transaction fees when a Business or Premier account receives a
payment. Second, PayPal earns a foreign exchange fee when an
account holder converts a balance from one currency to another.
Third, PayPal earns fees from merchants who utilize
PayPal’s online payment processing services. Fourth, PayPal
earns fees when a user receives payments from outside the
U.S. Fifth, PayPal may earn fees when a user withdraws
money to a
non-U.S. bank
account, depending on the amount of the withdrawal. Sixth,
PayPal earns a return on certain customer balances. Finally,
PayPal may earn ancillary revenues from a suite of financial
products, described below.

 

PayPal incurs funding costs on payments at varying levels based
on the source of the payment. Costs associated with credit card
and debit card funded payments are significantly higher than
bank account or balance-funded payments. U.S. account
holders who choose to maintain PayPal balances in
U.S. dollars have the ability to sweep balances into the
PayPal Money Market Fund. This Money Market Fund, which is
invested in a portfolio managed by Barclays Global
Fund Advisors, bore a current compound annual yield of
3.62% as of February 14, 2008.