3Q Results from PayPal and BillMeLater
Oct. 25, 2010
PayPal parent eBay announced financial results for the third quarter recently, as part of its earnings report. eBay’s Payments segment, which includes BillMeLater in addition to PayPal, recorded revenue of $817.0 million for the quarter, a 22 percent increase from the same time period a year ago. Net total payment volume for the quarter was $22.4 billion, an increase of 26 percent year over year, and up slightly from the previous quarter. PayPal’s transaction revenue rate decreased slightly to 3.57 percent, along with a slightly higher transaction processing expense rate of 1.18 percent and a stable transaction loss rate of 0.17 percent. Active accounts (defined as active in the last 12 months) reached 90.5 million, up 16 percent from 3Q 2010. BillMeLater’s volume for the quarter was unchanged at 1 percent of the total Payments segment payment volume. Net chargeoffs in the BillMeLater portfolio were 7.28 percent, down from 8.56 percent in the prior quarter.