Thursday, October 2, 2014 3:45 AM EDT
Thanks to strong growth of its online payments business, eBay reported better-than-expected second quarter results yesterday.
Net income increased to $676 million from $640 million in the same quarter a year ago. Overall revenue climbed 13% to $4.37 billion, as eBay's payments business once again outgrew the company's core business, the marketplace, by a wide margin.
The PayPal unit now accounts for 45% of eBay's net revenue and is on track to become the company's main revenue source in the near future. eBay's marketplace business was hurt by a severe security breach in the past quarter, as a cyber attack left the company no choice but to ask its 145 million users to change their passwords.
Update: On September 30, eBay announced that it plans to spin off PayPal into a separate public company in 2015. How long will it take for PayPal to become the bigger company?
This chart shows ebay's revenue growth since the first quarter of 2012, broken down by segment.
You will find more statistics at Statista
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I don't think it will take PayPal long at all to become the bigger company. PayPal is everywhere. It is already immensely powerful and prevalent in the world of eCommerce. What do you think?
I think it already is. Ebay is one company. It's name visible on ONE site. PayPal on the other hand is everywhere. You can use it as payment on numerous different sites.
I'm not sure. I think that Paypal has an edge with its recognizable brand name.
Well with so many competitors entering into the space (Google Wallet, Skrill, Dwolla, etc.) do you think that PayPal will be able to sustains its current position in the market?