eBay 2007 Annual Report Download - page 16

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invested heavily in promotions through marketing campaigns in the U.S. and pricing promotions on our site to drive
traffic and continue the growth in GMV. We believe that these measures will improve the number of items sold on
our site and, in turn, lead to higher GMV.
Another element of our growth strategy is to build adjacent Marketplaces businesses, such as our classified
platforms and StubHub, which offer new formats and new monetization models, as well as opportunities for growth
beyond our core businesses. We plan to continue to grow our adjacent Marketplaces businesses, including our
classifieds websites, Half.com, Rent.com, and Shopping.com. In addition, we intend to expand our monetization
models through advertising partnerships.
Payments
Our global payments platform, PayPal, enables any individual or business with an email address to securely,
easily and quickly send and receive payments online in over 190 markets worldwide. We believe our global
payments platform makes online commerce more efficient compared to traditional payment alternatives such as
checks, money orders and credit cards via merchant accounts. These traditional payment alternatives present
various obstacles to the online commerce experience, including lengthy processing time, inconvenience and high
costs. PayPal delivers a product well-suited for online merchants and individuals by allowing them to send and
receive online payments securely, conveniently and cost-effectively. The PayPal network builds on the existing
financial infrastructure of bank accounts and credit cards to create a global, real-time payment solution.
PayPal Value Proposition
Providing a more efficient and effective payment alternative for users is essential to creating a faster, easier and
safer online commerce experience. Our PayPal online payments solution allows account holders, as well as users of
other online businesses, to pay for their transactions securely, easily and quickly.
Buyer Value Proposition
PayPal enables buyers to pay merchants without sharing sensitive financial information. To make payments,
buyers need to disclose only their email addresses to recipients. Many buyers wary of disclosing financial
information online find this level of personal privacy attractive. Buyers also benefit from PayPal’s Buyer Protection
Program, which reimburses buyers using PayPal with respect to certain qualified purchases made on eBay.com.
Seller Value Proposition
PayPal offers online merchants an all-in-one payment processing solution that is less expensive than most
merchant accounts, offers industry-leading fraud prevention, and enables merchants to conduct business with
approximately 57 million PayPal registered active accounts in over 190 markets. PayPal also offers merchants the
ability to maintain a direct relationship with their customers.
A merchant can generally open a PayPal account and begin accepting credit card payments within a few
minutes. Most merchants are approved instantly for a PayPal account, and do not need to provide a personal
guaranty, acquire any specialized hardware, prepare an application, contact a payment gateway or encrypt customer
data. Furthermore, PayPal charges lower transaction fees than most merchant accounts, and charges no setup fees
and few or no recurring monthly fees.
The account-based nature of PayPal’s network helps us to detect and prevent fraud when funds enter, flow
through, and exit the PayPal network. Sellers can also reduce the risk of transaction losses resulting from
unauthorized credit card use and fraudulent chargebacks if they comply with PayPal’s Seller Protection Policy.
PayPal Overview
Joining the Network
PayPal offers three types of accounts: Personal, Business and Premier. A new account holder typically opens
an account to send money for an eBay purchase or a purchase on another website, a payment for services rendered,
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