EBAY » Topics » Payments Segment Net Transaction Revenues

This excerpt taken from the EBAY 10-Q filed Jul 28, 2006.
Payments Segment Net Transaction Revenues
 
Payments segment net transaction revenues increased 39% and 42% during the second quarter and first six months of 2006, respectively, compared to the same periods of the prior year. Payments segment net transaction revenues as a percentage of total net transaction revenues was 24% during the second quarter of 2006, compared to 22% in the same period of the prior year. Payment segment net transaction revenues as a percentage of total net transaction revenues was 24% during the first six months of 2006, compared to 23% in the same period of the prior year. The growth in Payments segment net transaction revenues was positively affected by PayPal’s continued penetration of eBay Marketplaces transactions, particularly in the United States and the United Kingdom.
 
In addition, revenues increased as a result of an increase in total payment volume for our PayPal merchant services transactions and the inclusion of the payment gateway business. The total payment volume for our PayPal merchant services transactions was approximately $3.1 billion and $6.0 billion in the second quarter and first six months of 2006, respectively, which represents 35% and 34% of PayPal’s total payment volume. The total payment volume for our PayPal merchant services transactions was approximately $1.9 billion and $3.8 billion in the second quarter and first six months of 2005, respectively, which represents 30% of PayPal’s total payment volume for both periods. Our Payments segment net transaction revenues as a percentage of total payment volume remained consistent at 3.7% during the second quarter and first six months of 2005 and 2006.
 
Net transaction revenues from the Payments segment earned internationally totaled $125.2 million and $243.8 million during the second quarter and first six months of 2006, respectively, representing 38% and 37% of total Payments segment net transaction revenue during those periods. This is compared to net transaction revenues from the Payments segment earned internationally of $85.6 million and $167.3 million during the second quarter and first six months of 2005, respectively, representing 36% of total Payments segment net transaction revenue during both those periods. We expect the Payments segment net transaction revenues to increase in total, and as a percentage of total net transaction revenues in 2006 compared to 2005. This growth will be driven by our Payments segment’s expanding on-eBay presence and merchant services business.
 
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