PayPal raises mobile payments prediction to $7 billion in 2012

PayPal raises mobile payments prediction to $7 billion in 2012

Summary: PayPal is expecting to nearly double what it saw in mobile payments volume in 2011 to nearly $7 billion for 2012.

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One of the quickly growing trends in tech that didn't have a very prominent showing at CES 2012 this week is mobile payments.

Nevertheless, there were plenty of major players in this field on hand throughout the show floor, including Visa and Intuit.

PayPal also made a mark on the show with a very strong prediction for mobile payments usage in 2012. During a panel discussion on Tuesday, eBay CEO John Donahoe announced that PayPal is projecting $7 billion in mobile payments volume for the digital wallet company in 2012.

By comparison, PayPal reached $4 billion in mobile payments volume last year, far higher than the company’s original prediction of $1.5 billion.

In fact, PayPal's mobile payments results have increased rapidly over the last few years. Here's a glance at volume results on an annual basis:

  • 2006: under $1 million
  • 2007: $7 million
  • 2008: $25 million
  • 2009: $141 million
  • 2010: $750 million
  • 2011: $4 billion

Part of the strategy that will likely contribute to an increase in PayPal's mobile payments results include some of its new mobile apps, some of which are in beta testing, that are set to launch this year.

One of the keys to enticing shoppers to adopt mobile payments is making it easy to use as well as available with as many retailers as possible. So far, PayPal seems to starting off well enough with major partners such as Starbucks and Fandango.

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Topics: Enterprise Software, Banking, Mobility

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  • still a long way to go

    well, the M-Pesa mobile money service in KENYA transferred more than $8 billion in 2010.
    masukuma