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EBAY » Topics » PayPal

This excerpt taken from the EBAY 10-Q filed Apr 28, 2009.

PayPal

The markets for PayPal’s product are intensely competitive and are subject to rapid technological change, including but not limited to: mobile payments, electronic funds transfer networks starting to allow Internet access, cross-border access to networks, creation of new networks, expansion of prepaid cards, and bill pay networks. PayPal competes with existing online and offline payment methods, including, among others:

 

  •  

credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which has merged with CyberSource);

 

  •  

money remitters such as MoneyGram and Western Union;

 

  •  

bill payment services, including CheckFree;

 

  •  

processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, eBillMe, Revolution Money and TeleCheck, a subsidiary of First Data, or to pay on credit;

 

  •  

providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;

 

  •  

issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot;

 

47

  •  

mobile payments, including Obopay, TextPayMe (a subsidiary of Amazon), Crandy, LUUP and Payforit;

 

  •  

Amazon Payments, which offers online merchants the ability to accept credit card- and bank-funded payments from Amazon’s base of online customers on the merchant’s own website; and

 

  •  

Google Checkout, which enables the online payment of merchants using credit cards.

Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal, which is subject to additional regulations based on its licensure as a bank in Luxembourg. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout provided free payment processing through February 1, 2008, and has offered free payments processing on transactions in an amount proportionate to certain advertising spending with Google. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.

Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank of Scotland’s World Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate and BPay in Australia, Alipay, YeePay and 99 Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.

Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone or through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, or these competitors and other processors could make it more difficult for PayPal to deliver its services.

These excerpts taken from the EBAY 10-K filed Feb 20, 2009.
PayPal
 
The markets for PayPal’s product are intensely competitive and are subject to rapid technological change, including but not limited to: mobile payments, electronic funds transfer networks starting to allow Internet access, cross-border access to networks, creation of new networks, expansion of prepaid cards, and bill pay networks. PayPal competes with existing online and offline payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which has merged with CyberSource);
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;
 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, eBillMe, Revolution Money and TeleCheck, a subsidiary of First Data, or to pay on credit;
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot;
 
  •  mobile payments, including Obopay, TextPayMe (a subsidiary of Amazon), Crandy, LUUP and Payforit;
 
  •  Amazon Payments, which offers online merchants the ability to accept credit card- and bank-funded payments from Amazon’s base of online customers on the merchant’s own website; and;
 
  •  Google Checkout, which enables the online payment of merchants using credit cards.


37

Table of Contents

 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal, which is subject to additional regulations based on its licensure as a bank in Luxembourg. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout provided free payment processing through February 1, 2008, and currently offers free payments processing on transactions in an amount proportionate to certain advertising spending with Google. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank of Scotland’s World Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate and BPay in Australia, Alipay, YeePay and 99 Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 
Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone or through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, or these competitors and other processors could make it more difficult for PayPal to deliver its services.
 
PayPal


 



The markets for PayPal’s product are intensely competitive
and are subject to rapid technological change, including but not
limited to: mobile payments, electronic funds transfer networks
starting to allow Internet access, cross-border access to
networks, creation of new networks, expansion of prepaid cards,
and bill pay networks. PayPal competes with existing online and
offline payment methods, including, among others:


 
































































































  • 
credit card merchant processors that offer their services to
online merchants, including American Express, Cardservice
International, Chase Paymentech, First Data, and Wells Fargo;
and payment gateways, including CyberSource and Authorize.net
(which has merged with CyberSource);
 
  • 
money remitters such as MoneyGram and Western Union;
 
  • 
bill payment services, including CheckFree;
 
  • 
processors that provide online merchants the ability to offer
their customers the option of paying for purchases from their
bank account, including Certegy, eBillMe, Revolution Money and
TeleCheck, a subsidiary of First Data, or to pay on credit;
 
  • 
providers of traditional payment methods, particularly credit
cards, checks, money orders, and Automated Clearing House
transactions;
 
  • 
issuers of stored value targeted at online payments, including
VisaBuxx, NetSpend and GreenDot;
 
  • 
mobile payments, including Obopay, TextPayMe (a subsidiary of
Amazon), Crandy, LUUP and Payforit;
 
  • 
Amazon Payments, which offers online merchants the ability to
accept credit card- and bank-funded payments from Amazon’s
base of online customers on the merchant’s own website; and;
 
  • 
Google Checkout, which enables the online payment of merchants
using credit cards.





37




Table of Contents





 



Some of these competitors have longer operating histories,
significantly greater financial, technical, marketing, customer
service and other resources, greater name recognition, or a
larger base of customers in affiliated businesses than PayPal.
PayPal’s competitors may respond to new or emerging
technologies and changes in customer requirements faster and
more effectively than PayPal. Some of these competitors may also
be subject to lesser licensing, anti-money laundering, and other
regulatory requirements than PayPal, which is subject to
additional regulations based on its licensure as a bank in
Luxembourg. They may devote greater resources to the
development, promotion, and sale of products and services than
PayPal, and they may offer lower prices. For example, Google
Checkout provided free payment processing through
February 1, 2008, and currently offers free payments
processing on transactions in an amount proportionate to certain
advertising spending with Google. Competing services tied to
established banks and other financial institutions may offer
greater liquidity and engender greater consumer confidence in
the safety and efficacy of their services than PayPal.


 



Overseas, PayPal faces competition from similar channels and
payment methods. In each country, numerous banks provide
standard online credit card acquiring and processing services,
and these banks typically have leading market share. In
addition, PayPal faces competition from Visa’s Visa Direct,
MasterCard’s MoneySend, Royal Bank of Scotland’s World
Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller
and FirePay in the United Kingdom, CertaPay and HyperWallet in
Canada, Paymate and BPay in Australia, Alipay, YeePay and
99 Bill in China and Inicis in South Korea. In addition, in
certain countries, such as Germany and Australia, electronic
funds transfer is a leading method of payment for both online
and offline transactions. As in the U.S., established banks and
other financial institutions that do not currently offer online
payments could quickly and easily develop such a service.


 



Some of PayPal’s competitors, such as Wells Fargo, First
Data, American Express, and Royal Bank of Scotland, also provide
processing or foreign exchange services to PayPal. If PayPal
were to seek to expand the financial products that it offers,
either alone or through a commercial alliance or an acquisition,
these processing and foreign exchange relationships could be
negatively affected, or these competitors and other processors
could make it more difficult for PayPal to deliver its services.


 




This excerpt taken from the EBAY 10-Q filed Oct 23, 2008.
PayPal
 
The markets for PayPal’s product are intensely competitive and are subject to rapid technological change, including but not limited to: mobile payments, electronic funds transfer networks starting to allow Internet access, cross-border access to networks, creation of new networks, expansion of prepaid cards, and bill pay networks. PayPal competes with existing online and offline payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which has merged with CyberSource);
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;


58

Table of Contents

 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, eBillMe, Revolution Money and TeleCheck, a subsidiary of First Data, or to pay on credit, including Bill Me Later (which we have agreed to acquire);
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot;
 
  •  mobile payments, including Obopay, TextPayMe (a subsidiary of Amazon), Crandy, LUUP and Payforit;
 
  •  Amazon Payments, which acts as a credit processor and can be linked to a personal bank account; and
 
  •  Google Checkout, which enables the online payment of merchants using credit cards.
 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal, which is subject to additional regulations based on its licensure as a bank in Luxembourg. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout provided free payment processing promotion through February 1, 2008, and currently offers free payments processing on transactions in an amount proportionate to certain advertising spending with Google. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank of Scotland’s World Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate and BPay in Australia, Alipay, YeePay, and 99Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 
Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone or through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, or these competitors and other processors could make it more difficult for PayPal to deliver its services.
 
This excerpt taken from the EBAY 10-Q filed Jul 24, 2008.
PayPal
 
The markets for PayPal’s product are intensely competitive and are subject to rapid technological change, including but not limited to: mobile payments, electronic funds transfer networks starting to allow Internet access, cross-border access to networks, creation of new networks, expansion of prepaid cards, and bill pay networks. PayPal competes with existing online and offline payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which has merged with CyberSource);
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;
 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, eBillMe, Revolution Money and TeleCheck, a subsidiary of First Data, or to pay on credit, including Bill Me Later;
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot;
 
  •  mobile payments, including Obopay, TextPayMe (a subsidiary of Amazon), Crandy, LUUP and Payforit;


55

Table of Contents

 
  •  Amazon Payments, which acts as a credit processor and can be linked to a personal bank account; and
 
  •  Google Checkout, which enables the online payment of merchants using credit cards.
 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal, which is subject to additional regulations based on its licensure as a bank in Luxembourg. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout provided free payment processing promotion through February 1, 2008, and currently offers free payments processing on transactions in an amount proportionate to certain advertising spending with Google. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank of Scotland’s World Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate and BPay in Australia, Alipay, YeePay, and 99Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 
Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone or through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, or these competitors and other processors could make it more difficult for PayPal to deliver its services.
 
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008.
PayPal
 
The market for PayPal’s product is emerging, intensely competitive, and characterized by rapid technological change. PayPal competes with existing online and offline payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which has merged with CyberSource);
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;


53

Table of Contents

 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, PayByTouch and TeleCheck, a subsidiary of First Data, or to pay on credit, including Bill Me Later;
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot (formerly known as Next Estate);
 
  •  Amazon Payments, which acts as a credit processor and can be linked to a personal bank account; and
 
  •  Google Checkout, which enables the online payment of merchants using credit cards.
 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal, which is subject to additional regulations based on its licensure as a bank in Luxembourg. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout provided free payment processing promotion through February 1, 2008, and currently offers free payments processing on transactions in an amount proportionate to certain advertising spending with Google. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank of Scotland’s World Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate and BPay in Australia, Alipay, YeePay, and 99Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 
Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone or through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, or these competitors and other processors could make it more difficult for PayPal to deliver its services.
 
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008.
PayPal
 
The market for PayPal’s product is emerging, intensely competitive, and characterized by rapid technological change. PayPal competes with existing online and offline payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which has merged with CyberSource);
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;


53

Table of Contents

 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, PayByTouch and TeleCheck, a subsidiary of First Data, or to pay on credit, including Bill Me Later;
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot (formerly known as Next Estate);
 
  •  Amazon Payments, which acts as a credit processor and can be linked to a personal bank account; and
 
  •  Google Checkout, which enables the online payment of merchants using credit cards.
 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal, which is subject to additional regulations based on its licensure as a bank in Luxembourg. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout provided free payment processing promotion through February 1, 2008, and currently offers free payments processing on transactions in an amount proportionate to certain advertising spending with Google. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank of Scotland’s World Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate and BPay in Australia, Alipay, YeePay, and 99Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 
Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone or through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, or these competitors and other processors could make it more difficult for PayPal to deliver its services.
 
These excerpts taken from the EBAY 10-K filed Feb 29, 2008.
PayPal
 
The market for PayPal’s product is emerging, intensely competitive, and characterized by rapid technological change. PayPal competes with existing online and offline payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which has merged with CyberSource);
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;
 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, PayByTouch and TeleCheck, a subsidiary of First Data, or to pay on credit, including Bill Me Later;
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot (formerly known as Next Estate);
 
  •  Amazon Payments, which acts as a credit processor and can be linked to a personal bank account; and
 
  •  Google Checkout, which enables the online payment of merchants using credit cards.
 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal, which is subject to additional regulations based on its licensure as a bank in Luxembourg. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout extended its free payment processing promotion through February 1, 2008, and currently offers free payments processing on transactions in an amount proportionate to certain advertising spending with Google. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank of Scotland’s World Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate and BPay in Australia, Alipay, YeePay, and 99Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 
Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone or through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, or these competitors and other processors could make it more difficult for PayPal to deliver its services.
 
PayPal


 



The market for PayPal’s product is emerging, intensely
competitive, and characterized by rapid technological change.
PayPal competes with existing online and offline payment
methods, including, among others:


 






















































































  • 
credit card merchant processors that offer their services to
online merchants, including American Express, Cardservice
International, Chase Paymentech, First Data, and Wells Fargo;
and payment gateways, including CyberSource and Authorize.net
(which has merged with CyberSource);
 
  • 
money remitters such as MoneyGram and Western Union;
 
  • 
bill payment services, including CheckFree;
 
  • 
processors that provide online merchants the ability to offer
their customers the option of paying for purchases from their
bank account, including Certegy, PayByTouch and TeleCheck, a
subsidiary of First Data, or to pay on credit, including Bill Me
Later;
 
  • 
providers of traditional payment methods, particularly credit
cards, checks, money orders, and Automated Clearing House
transactions;
 
  • 
issuers of stored value targeted at online payments, including
VisaBuxx, NetSpend and GreenDot (formerly known as Next Estate);
 
  • 
Amazon Payments, which acts as a credit processor and can be
linked to a personal bank account; and
 
  • 
Google Checkout, which enables the online payment of merchants
using credit cards.


 



Some of these competitors have longer operating histories,
significantly greater financial, technical, marketing, customer
service and other resources, greater name recognition, or a
larger base of customers in affiliated businesses than PayPal.
PayPal’s competitors may respond to new or emerging
technologies and changes in customer requirements faster and
more effectively than PayPal. Some of these competitors may also
be subject to lesser licensing, anti-money laundering, and other
regulatory requirements than PayPal, which is subject to
additional regulations based on its licensure as a bank in
Luxembourg. They may devote greater resources to the
development, promotion, and sale of products and services than
PayPal, and they may offer lower prices. For example, Google
Checkout extended its free payment processing promotion through
February 1, 2008, and currently offers free payments
processing on transactions in an amount proportionate to certain
advertising spending with Google. Competing services tied to
established banks and other financial institutions may offer
greater liquidity and engender greater consumer confidence in
the safety and efficacy of their services than PayPal.


 



Overseas, PayPal faces competition from similar channels and
payment methods. In each country, numerous banks provide
standard online credit card acquiring and processing services,
and these banks typically have leading market share. In
addition, PayPal faces competition from Visa’s Visa Direct,
MasterCard’s MoneySend, Royal Bank of Scotland’s World
Pay and ClickandBuy in the EU, NOCHEX, Moneybookers, NETeller
and FirePay in the United Kingdom, CertaPay and HyperWallet in
Canada, Paymate and BPay in Australia, Alipay, YeePay, and
99Bill in China and Inicis in South Korea. In addition, in
certain countries, such as Germany and Australia, electronic
funds transfer is a leading method of payment for both online
and offline transactions. As in the U.S., established banks and
other financial institutions that do not currently offer online
payments could quickly and easily develop such a service.


 



Some of PayPal’s competitors, such as Wells Fargo, First
Data, American Express, and Royal Bank of Scotland, also provide
processing or foreign exchange services to PayPal. If PayPal
were to seek to expand the financial products that it offers,
either alone or through a commercial alliance or an acquisition,
these processing and foreign exchange relationships could be
negatively affected, or these competitors and other processors
could make it more difficult for PayPal to deliver its services.


 




This excerpt taken from the EBAY 10-Q filed Oct 29, 2007.
PayPal
 
The market for PayPal’s product is emerging, intensely competitive, and characterized by rapid technological change. PayPal competes with existing online and off-line payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which have agreed to merge);
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;
 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, PayByTouch and TeleCheck, a subsidiary of First Data, or to pay on credit, including Bill Me Later;
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot (formerly known as Next Estate);
 
  •  Amazon Payments, which acts as a credit processor and can be linked to a personal bank account;
 
  •  Google Checkout, which enables the online payment of merchants using credit cards; and
 
  •  BidPay, an online auction payment service owned by CyberSource.
 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout has extended its free payment processing promotion through the end of 2007. Promotions such as this may force PayPal to lower its prices in response. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank of Scotland’s World Pay and ClickandBuy in the European Community, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate in Australia, Alipay, YeePay, and 99Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 
Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone, through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, and these competitors and other processors could make it more difficult for PayPal to deliver its services.
 
This excerpt taken from the EBAY 10-Q filed Jul 27, 2007.
PayPal
 
The market for PayPal’s product is emerging, intensely competitive, and characterized by rapid technological change. PayPal competes with existing online and off-line payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including American Express, Cardservice International, Chase Paymentech, First Data, and Wells Fargo; and payment gateways, including CyberSource and Authorize.net (which have agreed to merge);
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;
 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, PayByTouch and TeleCheck, a subsidiary of First Data, or to pay on credit, including Bill Me Later;
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and GreenDot (formerly known as Next Estate);
 
  •  Google Checkout, which enables the online payment of merchants using credit cards; and
 
  •  BidPay, an online auction payment service owned by CyberSource.
 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. Some of these competitors may also be subject to lesser licensing, anti-money laundering, and other regulatory requirements than PayPal. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout recently extended its free payment processing promotion through the end of 2007. Promotions such as this may force PayPal to lower its prices in response. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, Royal Bank


56

Table of Contents

of Scotland’s World Pay and ClickandBuy in the European Community, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate in Australia, Alipay, YeePay, and 99Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 
Some of PayPal’s competitors, such as Wells Fargo, First Data, American Express, and Royal Bank of Scotland, also provide processing or foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone, through a commercial alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, and these competitors and other processors could make it more difficult for PayPal to deliver its services.
 
This excerpt taken from the EBAY 10-Q filed Apr 25, 2007.
  PayPal
 
The market for PayPal’s product is emerging, intensely competitive, and characterized by rapid technological change. PayPal competes with existing online and off-line payment methods, including, among others:
 
  •  credit card merchant processors that offer their services to online merchants, including Cardservice International, Chase Paymentech, First Data, iPayment and Wells Fargo; and payment gateways, including CyberSource and Authorize.net;
 
  •  money remitters such as MoneyGram and Western Union;
 
  •  bill payment services, including CheckFree;
 
  •  processors that provide online merchants the ability to offer their customers the option of paying for purchases from their bank account, including Certegy, PayByTouch and TeleCheck, a subsidiary of First Data, or to pay on credit, including Bill Me Later;
 
  •  providers of traditional payment methods, particularly credit cards, checks, money orders, and Automated Clearing House transactions;
 
  •  issuers of stored value targeted at online payments, including VisaBuxx, NetSpend and Next Estate; and
 
  •  Google Checkout, which enables the online payment of merchants using credit cards.
 
Some of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, greater name recognition, or a larger base of customers in affiliated businesses than PayPal. PayPal’s competitors may respond to new or emerging technologies and changes in customer requirements faster and more effectively than PayPal. They may devote greater resources to the development, promotion, and sale of products and services than PayPal, and they may offer lower prices. For example, Google Checkout recently extended its free payment processing promotion through the end of 2007. Promotions such as this may force PayPal to lower its prices in response. Competing services tied to established banks and other financial institutions may offer greater liquidity and engender greater consumer confidence in the safety and efficacy of their services than PayPal.
 
Overseas, PayPal faces competition from similar channels and payment methods. In each country, numerous banks provide standard online credit card acquiring and processing services, and these banks typically have leading market share. In addition, PayPal faces competition from Visa’s Visa Direct, MasterCard’s MoneySend, and Royal Bank of Scotland’s World Pay and Webpay International’s Click & Buy in the European Community, NOCHEX, Moneybookers, NETeller and FirePay in the United Kingdom, CertaPay and HyperWallet in Canada, Paymate in Australia, Alipay and 99Bill in China and Inicis in South Korea. In addition, in certain countries, such as Germany and Australia, electronic funds transfer is a leading method of payment for both online and offline transactions. As in the U.S., established banks and other financial institutions that do not currently offer online payments could quickly and easily develop such a service.
 

EXCERPTS ON THIS PAGE:

10-Q
Apr 28, 2009
10-K (2 sections)
Feb 20, 2009
10-Q
Oct 23, 2008
10-Q
Jul 24, 2008
10-Q
Apr 24, 2008
10-Q
Apr 24, 2008
10-K (2 sections)
Feb 29, 2008
10-Q
Oct 29, 2007
10-Q
Jul 27, 2007
10-Q
Apr 25, 2007

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