eBay 2012 Annual Report Download - page 10

We have embarked on plans to enable merchants to offer PayPal at offline retail locations.
In 2011, we began work on a PayPal point of sale payments solution for the U.S. and select European markets. In the U.S., this solution is
intended to allow PayPal users who sign up for the service to use their PayPal accounts to make purchases at offline retail locations. We expect
that users will be able to access their PayPal accounts through a PayPal Access Card, their mobile phone number and personal identification
number (PIN), or a Near Field Communication-enabled device depending on what the retailer offers. This initiative is an important part of
PayPal's strategy to provide a comprehensive payment solution for retailers both online and offline. We implemented the point of sale payments
solution on a limited basis for select retailers in 2012, and expect to continue to roll out this product to additional retailers.
Our payments solutions offer leading fraud prevention and protection.
PayPal enables consumers to pay merchants quickly and easily without sharing sensitive financial information, such as credit card or debit
card numbers. To make payments using PayPal, consumers need to disclose only their email addresses to merchants. The account-based nature
of PayPal's network helps us to better detect and prevent fraud when funds enter, flow through and exit the PayPal network.
Bill Me Later accounts are most commonly opened on a U.S. merchant websites, including eBay.com, offering Bill Me Later as a
payment method but can also be opened by U.S. consumers through a qualified PayPal account or at the Bill Me Later website.
When using Bill Me Later, qualified consumers need to provide only their name, address, birth date and the last four digits of their social
security number. When using Zong, buyers need to input only their mobile phone number and respond to a text or email requiring them to
approve the transaction.
PayPal has developed a number of trust and safety programs, including PayPal's Seller Protection and Purchase Protection Programs.
These programs provide additional protection to certain account holders who pay or receive payment for their transactions through PayPal on or
off eBay.com in certain key geographies. PayPal's Seller Protection Program covers sellers in certain key geographies who follow specific
shipping and handling practices against claims that a transaction was not authorized by the buyer or that the item was not received. PayPal's
Purchase Protection Program reimburses the buyer, subject to specified limitations, for qualified purchases using PayPal on or off eBay.com in
certain key geographies if the buyer does not receive the item or, in limited markets, if the item is significantly not as described. In some non-
U.S. markets, protection for buyers is limited to a maximum amount per transaction.
GSI
Acquired by eBay in June 2011, GSI is a leading provider of ecommerce and interactive marketing services to enterprise clients that
include some of the world's leading brands and retailers. GSI offers a broad suite of solutions designed to power merchants' online businesses
and effectively integrate with their other sales channels. GSI's advanced technology, fulfillment, customer care and interactive marketing
services are designed to enable its clients to elevate the consumer experience and cost-effectively sustain it over time.
GSI operates two business units: Global eCommerce Services, or GeC, and Global Marketing Services, or GMS. Each business unit offers
products and services that complement the other, which allows for cross-
selling opportunities. While GSI operates on a global basis, nearly all of
its net revenues in 2012 were derived from its North American operations.
GSI enables companies to operate ecommerce businesses and to integrate their ecommerce businesses with other multi-channel retail
offerings.
GSI sells its products and services on an individual basis and as bundled solutions. The GeC business unit serves enterprise clients that
operate in general merchandise categories, including apparel, sporting goods, toys & baby, health & beauty and home. We refer to GSI clients as
enterprise clients because GSI generally serves large, nationally recognized brand name companies. The GeC ecommerce suite is comprised of
three principal services: Technology & Payments, Fulfillment & Freight and Customer Care.
GSI Technology & Payments services provide retailers with ecommerce platforms, products and services.
GSI Technology & Payments uses shared sales, service, operations and administration teams for its three areas of focus: webstore &
mobile, commerce exchange & multi-channel and payments. `
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