eBay 2006 Annual Report Download - page 11

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transaction, from any ATM connected to the Cirrus or Maestro networks and can make purchases at any merchant
accepting MasterCard.
PayPal’s Trust and Safety Programs
We have developed a number of PayPal trust and safety programs, including PayPal’s Seller Protection and
Buyer Protection Programs. These programs provide additional protection to certain account holders who pay, or
receive payment, for their transactions through PayPal. PayPal’s Seller Protection Program covers sellers for up to
$5,000 per year on certain reversed transactions. PayPal’s Buyer Protection Program covers qualified purchases on
eBay.com for up to $2,000 coverage at no cost (with different terms for transactions denominated in non-U.S. cur-
rencies). In addition, our Fraud Investigation Team focuses on identifying and preventing fraud before it occurs,
detecting fraud in process, mitigating loss if fraud does occur and delivering information to law enforcement around
the world to better combat online fraud.
PayPal Growth Strategy
We seek to extend our leading position and become the online payment network of choice around the world. To
establish PayPal as the global payment standard in online payments, we intend to focus on, among other things,
increased adoption of PayPal on Marketplaces, expansion of PayPal’s Merchant Services, which are services for
merchants who sell through their own websites, and further development of online financial products.
Marketplaces
PayPal’s services are integrated into the checkout flow of the eBay.com platform in our key markets, including
the U.S., Germany, the U.K. and Canada. In 2006, eBay.com generated more than $52 billion in GMV. PayPal, in
turn, generated over $24 billion of total payment volume from eBay.com transactions.
We intend to increase PayPal’s penetration of GMV on the eBay.com platform through product innovation,
integrate PayPal onto the other platforms within our Marketplaces segment and expand PayPal’s global presence.
We intend to strengthen PayPal’s penetration into the payments area on the Marketplaces platforms by continuing to
integrate with eBay listings and new formats, focus on buyer protection programs and adding product features
important to the Marketplaces community. Our expansion into an increased number of international markets and
currencies makes cross-border transactions easier and more efficient, benefiting both Marketplaces and PayPal.
Merchant Services
We intend to continue to market our global payments solution to spur our growth as a payment solution for sole
proprietors and small, medium, and large businesses. Our Merchant Services business offers a differentiated
product solution for each merchant segment — sole proprietor, small and medium businesses, and large mer-
chants — while providing a cost-effective and safe payment solution in all segments.
We intend to grow our global Merchant Services business by enhancing our product offering, leveraging our
multiple sales channels to expand our network of merchants and developing our global footprint.
Financial Products
We will continue to identify transactions and markets not served adequately by existing payment systems and
seek to develop product features that improve upon those legacy systems. In addition, we will seek to expand the
breadth of products and services available to our account holders and have begun offering financial products like the
PayPal branded debit card, PayPal branded credit card and the PayPal Buyer Credit Offering. Furthermore, we are
developing a mobile payments solution and launched Go Mobile with PayPal during 2006 as a foundation for our
mobile platform.
Communications
We added the Communications segment upon our acquisition of Skype in October 2005. Skype is a
Luxembourg-based company that was established in 2003.
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