PayPal To Hit $4.7 Billion In Payment Volume
PayPal seems to finally delivering on its promise and benefiting from that is the digital marketplace. In a statement released by eBay, the PayPal arm of its operations is set to process over $4.7 billion in total payment volume (TPV) for 2011.
This is really big news and represents a sizable 28% growth on 2010 figures where PayPal processed just over $3.4 billion in TPV. PayPal’s growth has been so significant that its definition of what constitutes a ‘digital good’ is now the standard for all web payment systems. That definition has grown to include virtual goods, digital music, news, media, online video and even virtual currencies like Facebook Credits.
$4.7 billion in sales is a big vote for digital goods and according to PayPal’s Senior Director of Emerging Opportunities Carey Kolaja, the potential for digital goods is very huge indeed and both eBay and PayPal are heavily invested in this growing arena.
The growth in digital goods processing has even led to the formation of a partnership with Microsoft. And plans are afoot to have in-console payments handled by PayPal on the Xbox 360. This will not only push TPV higher, it will eventually redefine the digital goods space. There’s also strong growth expectation and PayPal is projecting growth of up to $150 billion TPV in the next few years.
PayPal’s projected numbers may not materialize but one thing is certain, the future of digital goods is bright for all platforms.
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