eBay’s (NASDAQ:EBAY) payment platform PayPal saw a huge jump in mobile payments for the holiday shopping season. The mobile payment volume on Cyber Monday 2011 saw a whopping six-fold increase over the comparable time last year.  The company has gauged the mobile revolution well in time with strategic acquisitions like Zong, and PayPal should continue to remain its fastest growing segment for the remaining year. eBay competes in the e-commerce space with companies like Amazon (NASDAQ:AMZN) and Alibaba.
Mobile Should Accelerate e-Commerce Growth in Future
Given the +500% YoY increase in mobile payments for PayPal on Cyber Monday, it could not get any clearer that mobile would be the prime driver for e-commerce growth, which is still a single digit percentage of the total retail sales in the U.S.
While eBay may not have its own hardware platforms like Amazon’s Kindle Fire, PayPal’s aggressive expansion and product development in mobile payments should ensure that the division increasingly contributes more to eBay’s stock. We currently have a price estimate of around $39 for eBay’s stock, which is about 35% above the current market price.
- Here’s How eBay Can Benefit From Its African Expansion
- How Do Sales & Administrative Costs Impact eBay’s Income?
- How Important Is The Marketing & Advertising Business For eBay?
- How Will eBay’s Ticketbis Acquisition Impact Its Top Line?
- Can Virtual Reality Stores Drive Revenues For eBay?
- eBay’s Next Move: Artificial Intelligence To Refine Product Searches