eBay: 79% of Global Shoppers Prefer PayPal

Jul 31, 2014 8:58 AM  By

Paypal Credit Card LogoPayPal is the preferred payment method for eBay’s cross-border consumers, eBay president and CEO John Donahoe said during the company’s second-quarter earnings call.

According to Donohoe, 79% of global shoppers identified PayPal as their preferred payment method when making cross-border purchases.

PayPal’s global business generated $986 million in revenue in the second quarter, and international revenue grew at a rate of 19% year over year. For the eleventh quarter in a row, PayPal’s global revenue represented more than half of PayPal’s total revenue.

PayPal is owned by eBay Inc., and eBay is running promotions to encourage use of its online payment method.

For example, to enhance the consumer experience, PayPal is testing free returns on cross-border purchases in four European markets. And PayPal’s PassPort program was launched in the second quarter to help merchants grow their cross-border businesses.

PayPal is also conducting a global brand campaign “Powering The People Economy” across television, print, digital, out of home, experiential, in-store and social channels. He campaign, launched April 30, targets consumers in Germany, the U.K., Australia and the United States.

“One of the areas we are investing in PayPal this year is really for the first time ever beginning to do some marketing,” Donohoe said during the earnings call. “It’s very hard to read early on but the early qualitative data we have gotten back is strong.” And we will continue that in the second half.

eBay Marketplaces also had a good second quarter. Global gross merchandise volume grew 8% and revenue was up 6%. Top-rated Sellers in the U.S., UK and Germany grew their same-store sales 14%, and its global fixed price volume was up 19%.