PayPal said today that it will open its online payment system to third-party developers, allowing them to incorporate payment transactions to be conducted in their applications. Called Adaptive Payments Service, it was made available to 300 PayPal partners today and will be enter a public beta in November, right around the of PayPal's first developer conference.
During eBay's quarterly earnings call with analysts yesterday, CEO John Donahoe hinted about today's announcement as the company noted that the PayPal unit has momentum - though it's growth was offset by the Marketplaces business. At the Fortune Brainstorm: Tech Conference today, Donahoe said that, within 4-6 years, PayPal as a business will be bigger than eBay.
In addition, he said there is plenty of room for e-commerce to grow, highlighting that only five percent of sales today are online.
New features in the payments system allows developers to determine who pays PayPal's fee - the buyer or the seller, according to a CNET report. It also opens the door to handling payments on devices other than computers, including mobile devices, set-top boxes and gaming console systems. he payment system, users will
The company also established a new Web site - called Change How We Pay - to solicit innovative and interesting ways to pay in the future.