Why Will PayPal’s Mobile Products Provide a Surprise Lift to eBay?

PayPal is a service that is used by millions of people all around the world to make swift and secure online transactions. PayPal is actually a subsidiary of eBay Inc. The latest of PayPal’s services include many mobile Product offerings. However, the real question on everyone’s mind is whether PayPal’s mobile products will provide a surprise lift to eBay.

eBay

eBay Inc is an American Company founded in 1995. With its headquarters in San Jose, California, it is primarily a C2C (customer-to-customer) corporation that started as eBay.com. eBay.com is a website where items can be bought and sold in online auctions. This multi-billion dollar business has expanded into over thirty countries where it does business.

eBay has expanded its services and now includes eBay Classifieds, PayPal and StubHub. eBay Classifieds is a website that offers free classifieds. PayPal is famous for its secure and quick online transactions. StubHub is a website where customers can purchase and trade online event tickets.

PayPal

PayPal is a business founded in Palo Alto, California, in 1998. PayPal provides services that serve as some of the world’s most renowned and secure methods of performing online transactions. You probably use PayPal using an internet connection from one of the manydsl internet providers. In fact, a majority of the world’s businesses provide PayPal as an option for their online transactions. PayPal serves a global customer base

PayPal Mobile Products

PayPal Mobile is one of PayPal’s mobile services. It enables its customers to send payments, buy items and make donations by using their mobile phones. The application has been designed in such a way that it is very easy to use, yet offers powerful transaction abilities. A customer can use a mobile internet connection from one of the many dsl internet providers.

Another, rather new, PayPal mobile product is PayPal Here. PayPal Here is a brand new mobile service that enables merchants to use their mobile phones as credit card machines. By doing so, third party merchants will no longer need to buy separate credit card machines. They can use an internet connection from one of many dsl internet providers and use their mobile phones instead.

First-Quarter Payment Reviews

It was during April this month that analysts reviewed eBay’s earning reports of its first quarter. The primary goal was to find signs of improving sales of their mobile products. According to their reports, PayPal now serves over 2000 home depots and literally millions of online businesses.

Unfortunately, due to the relatively new nature of PayPal Here, eBay did not incorporate its revenues in its quarterly report. The revenue forecast due to PayPal Here was also not included. According to eBay, it is too early to forecast the kind of bearing that PayPal Here will take.

According to Mark Mahaney, a Citi analyst, any new products that are being offered, such as PayPal’s Here, cannot be included in our report or even our revenue forecast, as they are typically wildcards. According to many analysts, revenue of $3.15 billion should yield shares of 52 cents per share.

However, these forecasts are on the high side. According to eBay and its forecasts, revenue of $3.05 million to $3.15 million should yield shares of 50-51 cents. However, these do not include certain expenses.

Analysts will however be on the lookout of the revenue generated from its core-market. Additionally, the acquisition of GSI is also an area of scrutiny by many analysts. According to eBay, the company wants to do well in both the payment and e-commerce sections. It aims at providing third-party retailers with the tools they need to rival companies such as Amazon.com.

However, if all goes well, PayPal’s mobile products could provide a huge and surprise lift to eBay’s revenue. Currently, eBay is trading at $36.03 a share. A 52-week high was also achieved by eBay when its stocks climbed to $38.18 a share.

It seems that only time will tell how effective the wildcards are for eBay. Until then, analysts can only wait and investors can only hold their breaths. Using the information currently available, it seems that PayPal’s mobile products, including PayPal Here, will provide a huge and surprise lift to eBay’s revenue.

For more information, users can use an internet connection from one of the many dsl internet providers to access the first-quarter reports of eBay.

About the author:

The above article is composed and edited by Shannen Doherty .She is a technical content writer. She is associated with many technology communities including Broadband Expert as their freelance writer and adviser. In her free time she writes articles related to: internet, dish network packages, mobile internet, technology mobile broadband, etc.