PayPal expects to process $2 billion in mobile payments in 2011
During eBay's first quarter earnings call, PayPal, the digital transaction arm of eBay, said that it expects to process more than $2 billion in mobile payments this year, which is nearly three times the amount it processed in 2010. In addition, the company announced that it acquired Fig Card, the maker of a low cost USB device that plugs into the cash register at point of sale offering merchants an easy way to handle mobile payments.
According to a transcript of the earnings call from Seeking Alpha, John Donahoe, eBay's CEO, said that mobile payments offer strong growth potential for PayPal particularly since it doesn't require consumers to enter their credit card information. Consumers' concerns over security have prevented many from entering credit card data via their mobile phones, but PayPal alleviates those concerns. "The fact is PayPal is the only safe way to pay on mobile phones," he told analysts.
In addition, Donahoe said PayPal's agreements with VeriFone Systems and Bling Nation have helped the company penetrate the physical point of sale for the first time.
Regarding the purchase of Fig Card, PayPal did not reveal the terms of the deal. However, in a blog post, Peter Chu, senior director of PayPal Mobile, said that Fig Card founders Max Metral and Hasty Granbery will join PayPal.