Paypal Thrives in Australia
It is reported that eBay’s total revenue as of 30 September 2010 is $2.2 Billion, an increase of 1% compared last September 2009. Most of the revenue comes from Paypal’s thriving success, contributing 37% to eBay’s total revenue for this quarter. Its net total payment increased to 26%.
Paypal has really emerged and starting to build its brand. Particularly in Australia, the business is continuously growing amounting to $A2 billion in 5 years. In 2009, more or less there are 3 million Australian users and 30,000 Australian businesses ranging from small, medium and corporate are using and trusting Paypal to be their official medium in collection and payment transactions..Its proven techniques in handling its transactions are very unique and outstanding. It created a market space in online payment,
Although most transactions are from eBay, non-related eBay is growing even faster. There are a number of companies in Australia use Paypal. Some well-known and highly established companies are JB Hi-Fi, Rebel Sport, Borders, Hoyts, Flight Centre, Webjet, Air Asia X, Optus, and Telstra.
According to Nielsen’s survey, 29% of shoppers preferred Paypal ahead of 25% Visa and 14% Master. Around 40% is spent overseas. There are two main reasons Freke Malte-Feller, Managing Director of both eBay and Paypal, pointed out. First is reducing security exposure. When paying using Paypal, users do not need to share its credit card details. Second is convenience to consumers. Users do not have to remember their 16-digit card number, cardholder’s name, its expiry date and security code, as traditional credit card companies required during payment transactions.
Feller also believes that Paypal will have future growth in Australia though spending is only 3% in Australia and 7% in some countries like, US,UK, Europe and Korea. The consumer’s readiness to ecommerce is realizing. However, retailers are starting to lag. Online products and services are not really fantastic, plus additional cost in shipping (for other retailers). But having said that, well-known brick and mortar retailers are starting to venture to a brick and click business.
Another avenue for Paypal is mobile apps. With the rise of iPhones and Blackberry’s in the market, mobile apps is one of its trends. Paypal has yet to develop app to cater this market. More innovations are coming in the next three to four years with the world’s Internet revolution.