Although eBay is demonstrating a weak growth rate, Paypal is celebrating this first-quarter growth in revenues of 31% this year with $493 million. Paypal's growth in the past was very much inside eBay's website but now it has lost its dependency and almost 40% of its transactions are coming from outside the auction site. Recently eBay increased Paypal's reach integrating it with yet another company that it owns, Skype. Skype users now can transfer money using Paypal, this recourse is great for service providers using this VoIP application.

Paypal executives announced some news features such as a security alert for sellers. In case a buyer acquired a few products but stoped paying for them, an alert is issues to possible sellers that this client may meet in the future.

Besides this, Paypal is trying to compete with banks with its own virtual debit card and a special account with 4% interest and its own credit card. The virtual debit card works for sites that do not use Paypal as a type of payment so clients can request a temporary number from MasterCard to make the purchase. The amount will be debited from the client's Paypal account.

In Brazil Paypal is used but its not that easy. In several countries users can register their bank accounts directly with Paypal to add or withdraw money. Unfortunately this service is not yet balid for Brazilian banks. We can insert money using our credit card but withdraw money by check or through a partner national site that will link directly with our national bank accounts.

The biggest online competitor for Paypal is Google Checkout who is still at its first year. Recently the rivals got their space in the media. eBay does not allow its vendors to use Google Checkout and as a protest, Google decided to throw a party called "Let Freedom Ring" at the same day. As a response eBay removed all Google ads from its American site. The blow was more then effective, Google went public to cancel the party and everyone again lived their happy lives.

Source: Business Week.

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