eBay 2007 Annual Report Download - page 18

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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 on eBay. 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. currencies). 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 become the online payment network of choice around the world through our focus on simplifying
the customer experience, striving to be the most secure method of payment on the Internet, enhancing the product
offering for our merchants and utilizing multiple sales channels. To establish PayPal as the global standard in online
payments, we intend to continue focusing on increased user adoption of PayPal on our Marketplaces platforms, and
continued expansion of PayPal’s Merchant Services business and our financial products business.
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 2007, eBay.com generated more than $59 billion in GMV. PayPal, in
turn, generated approximately $28 billion of net Total Payment Volume from eBay.com transactions, which
represented approximately 58% of PayPal’s net Total Payment Volume during 2007. Net Total Payment Volume is
the total dollar volume of payments, net of payment reversals, successfully completed through the PayPal system,
excluding PayPal’s payment gateway business.
We intend to increase PayPal’s penetration of GMV on the eBay.com platform globally by continuing to
integrate with eBay listings and new formats, including our adjacent Marketplaces businesses, focusing on buyer
protection programs and adding product features and innovations important to the Marketplaces community. We
believe that our expansion into an increased number of international markets and currencies will continue to make
cross-border transactions easier and more efficient, benefiting both our Marketplaces and Payments segments.
Merchant Services
Our Merchant Services business offers a differentiated product solution for each merchant category, while
providing a cost-effective and secure payment solution across all categories. In 2007, PayPal expanded its presence
to ecommerce websites such as Southwest Airlines, BlueNile.com, Lindt Chocolatier, Toys R Us and Barnes &
Noble. We intend to continue to market our global payments solution to spur our growth as a payment solution off of
eBay.com for sole proprietors and small, medium and large businesses.
We also intend to grow our Merchant Services business by enhancing our product offering and leveraging our
multiple sales channels to expand our network of merchants globally.
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 intend to expand the
breadth of products and services available to our account holders and have begun offering financial products such as
the following:
• PayPal Buyer Credit, a personal credit account issued by GE Money Bank, which allows users to buy now
and pay later for their PayPal purchases;
• PayPal ATM/Debit Card, which enables business users to withdraw funds from their PayPal accounts at
ATMs, pay for offline purchases with funds from their PayPal account, and qualify to receive cash back;
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