PayPal promotes former Zong chief David Marcus to president
eBay appointed David Marcus as president of its PayPal division. Marcus, previously PayPal's vice president of mobile, replaces Scott Thompson, who stepped down in January 2012 to become CEO at Yahoo.
Marcus joined PayPal in mid-2011 when eBay acquired mobile payments provider Zong for approximately $240 million in cash. Marcus founded Zong in 2008 and served as its CEO; the firm enabled consumers to purchase digital goods and services with a single touch, charging transactions directly to their mobile operator bill. At the time of the eBay acquisition, Zong touted more than 250 carrier agreements, reaching 3.2 billion mobile subscribers in 45 countries and 21 languages. eBay acquired Zong to complement its existing PayPal digital commerce efforts.
PayPal now boasts more than 104 million active users in 190 countries, with more than 8 million merchant partners. PayPal handled more than $4 billion in mobile payments in 2011--the company is expected to top $7 billion in mobile payment volume this year, according to eBay CEO John Donahoe.
In a PayPal Blog entry posted Thursday, Donahoe cited Marcus' work on the new PayPal Here mobile payment system, unveiled earlier this month. PayPal Here enables small businesses and other users to process credit and debit transactions by swiping the card through a small, triangle-shaped dongle that attaches to their smartphone or tablet. Users also can access their mobile device's camera to scan and process cards and checks. PayPal Here charges merchants a flat rate of 2.7 percent per transaction, a .05 percent savings over rival Square's mobile payment offering.
PayPal Here signed up an average of 1,000 users per hour during its first day of availability, the company announced last week.
In addition, PayPal is currently testing mobile wallet services at more than 2,000 Home Depot stores across the U.S., enabling consumers to pay for items at checkout via mobile device or a special PayPal card. PayPal first revealed its brick-and-mortar payment plans in September 2011, promising to introduce digital commerce solutions optimized across all devices, not just mobile phones, and encompassing funding options including cash, credit and installments. Along with mobile and point-of-sale payments, PayPal will launch geo-targeted mobile advertising campaigns, barcode scanning tools and real-time inventory data.
- read this PayPal Blog entry
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