Scott Thompson
  September 17, 2009
This presentation may make forward-looking statements relating to our future performance that
are based on our current exp...
The Global Internet
 Payment Network


                      3
An evolving industry



 1     Powering global eCommerce

 2     Unmatched advantages

 3     Significant opportunity ahea...
5
Traditional payments not designed for the web




 Helga
                                      Review &
                  ...
Traditional payments not designed for the web




 Helga                            • Fraudsters
                         ...
Traditional payment networks are limited




                                           8
Worldwide accessibility

                          • 190 global markets

                          • 17 local language sit...
Unmatched advantages & network effects


    Internet                Fraud
  technology               expertise
          ...
Growth in active accounts

                       +23% TPV growing+20%
                       +23%
          +16%
        ...
Strong TPV growth with tremendous opportunity
                   TPV Growing 2-3X
                   Faster than Competito...
How we’ll get there

                      Global eBay
Global
Merchant                    Adjacent
Services               ...
Global eBay




              14
Penetration growing on eBay


                                                     73-78% 2011


                         ...
Significant opportunity in international markets

 2008 eBay aGMV & PayPal penetration*

                                 ...
Global Merchant Services




                       17
Gaining share in Global Merchant Services


                                                     8-9% 2011

           Mer...
Success across merchant segments
    eCommerce volume              PayPal TPV
                                 2006-08 CAG...
Serving the worlds largest online brands


         PP # of top 50
        online merchants

 US          21+

W Europe   ...
Opportunity in NA and International markets
        North America         International
                                  ...
Bill Me Later complements PayPal


   • Helps PayPal drive coverage
     & preference

   • Helps merchants drive sales


...
Sales lift for merchants




           Sales lift through
           promotional
           offers




                  ...
Fast, convenient, secure credit for consumers




                                          24
Structural advantage in risk management

                            Credit card
                               $$$$$

   ...
BML risk management
                                                                  Portfolio Balance: $553M*


        ...
Significant PayPal – BML synergies
 Grow eBay GMV

     Accelerate merchant
     sales cycle
          Speed Bill Me Later...
Adjacent payments




                    28
Many sectors need payment solutions
  Mobile &
   Mobile &
  other devices
   other devices        Banks
                 ...
PayPal platform enables developers

                                                       225k+
                         ...
Tremendous growth ahead: TPV
   Global Total Payment Volume
                       $100-120B
                             ...
Tremendous growth ahead: metrics

  Global take rate         Transaction expense        Transaction Losses
  Great deals f...
Tremendous growth ahead: margins


2009-10: margin decrease due to
BML integration

Medium term: margins return to 18-20%
...
Tremendous growth ahead: revenue
                                       2009-2011
                                        ...
An evolving industry



  1    Powering global eCommerce

  2    Unmatched advantages

  3    Significant opportunity ahea...
The world’s favorite way to
    pay and be paid
                              36
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Paypal: The Global Internet Payment Network

  1. 1. Scott Thompson September 17, 2009
  2. 2. This presentation may make forward-looking statements relating to our future performance that are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding expected financial results for the third quarter of 2009, and anticipated future stability and growth in the Marketplaces business unit. Our actual results may differ materially from those discussed in this call for a variety of reasons, including, but not limited to, the impact of recent global economic events and the global economic downturn; foreign-exchange-rate fluctuations; changes in political, business, and economic conditions; the impact and integration of recent and future acquisitions; the impact of divestitures; our increasing need to grow revenues from existing users in established markets; an increasingly competitive environment for our businesses; the complexity of managing an increasingly large enterprise, with a broad range of businesses, our need to manage regulatory, tax, IP and litigation risks (including risks specific to PayPal, Bill Me Later and the financial industry, and risks specific to Skype’s technology and to the VoIP industry); and our need to upgrade our technology and customer service infrastructure at reasonable cost while adding new features and maintaining site stability. You can find more information about factors that could affect our operating results in our most recent annual report on our Form 10-K and our subsequent quarterly reports on Form 10-Q (available at http://investor.ebay.com). You should not unduly rely on any forward-looking statements, and we assume no obligation to update them. All information in the presentation is as of July 22, 2009, and we do not intend, and undertake no duty, to update this presentation. 2
  3. 3. The Global Internet Payment Network 3
  4. 4. An evolving industry 1 Powering global eCommerce 2 Unmatched advantages 3 Significant opportunity ahead 4
  5. 5. 5
  6. 6. Traditional payments not designed for the web Helga Review & Complete 6
  7. 7. Traditional payments not designed for the web Helga • Fraudsters • ID theft 7
  8. 8. Traditional payment networks are limited 8
  9. 9. Worldwide accessibility • 190 global markets • 17 local language sites • 19 currencies 9
  10. 10. Unmatched advantages & network effects Internet Fraud technology expertise PayPal network effects Closed-loop Global data connections 10
  11. 11. Growth in active accounts +23% TPV growing+20% +23% +16% +16% 2-3X faster than competitors 49.4 3649.4 $48 57.3 $60 70.4 57.3 Billion 70.4 62.6 75.4 llionMillion $48 Million Billion $60 Million Million Million Million Million Billion Million Billion 2006 2007 2008 Q208 Q209 11
  12. 12. Strong TPV growth with tremendous opportunity TPV Growing 2-3X Faster than Competitors $16.7b in Q209 $100- 120 BILLION $36 $48 $60 Billion Billion Billion 2006 2007 2008 2011 12
  13. 13. How we’ll get there Global eBay Global Merchant Adjacent Services payments 13
  14. 14. Global eBay 14
  15. 15. Penetration growing on eBay 73-78% 2011 64.4% Q209 eBay Seller Coverage global penetration 58% 2008 SHARE Consumer Preference 15
  16. 16. Significant opportunity in international markets 2008 eBay aGMV & PayPal penetration* $29B $24B 79% 41% North America International 16 *Includes shipping and handling
  17. 17. Global Merchant Services 17
  18. 18. Gaining share in Global Merchant Services 8-9% 2011 Merchant Coverage 5% 2008 SHARE Consumer Preference 18
  19. 19. Success across merchant segments eCommerce volume PayPal TPV 2006-08 CAGR Large merchants 130% 77% Small/ medium 71% businesses 17% Sole 33% proprietors 6% Total 54% 19
  20. 20. Serving the worlds largest online brands PP # of top 50 online merchants US 21+ W Europe 13+ Asia 25+ 20
  21. 21. Opportunity in NA and International markets North America International $460- 480 Billion $305- $293 Billion $237 315 Billion Billion 2008 2011 2008 2011 Share 9% 13-14% 2% 5-6% 21
  22. 22. Bill Me Later complements PayPal • Helps PayPal drive coverage & preference • Helps merchants drive sales 22
  23. 23. Sales lift for merchants Sales lift through promotional offers 23
  24. 24. Fast, convenient, secure credit for consumers 24
  25. 25. Structural advantage in risk management Credit card $$$$$ $ $$ 25
  26. 26. BML risk management Portfolio Balance: $553M* Avg. Customer Net Charge-Offs as % Risk-Adjusted Margin** of Receivables FICO Score 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 • Risk-adjusted margin at 10.3% • Continued trend of high-quality • Net charge-off rate at 11.1% • Reduced consumer demand and customer acquisitions • Credit write-offs have increased, higher credit standards drove • Underwriting approach will remain average receivables have declined decline in average receivables cautious for foreseeable future • Margin % and margin trend remain favorable to credit card industry results *Gross receivables balance as of 6/30/09 **We define Risk-Adjusted Margin as the annualized ratio of total revenues less cost of funds less net credit and fraud losses relative to average annualized loan receivables for the 3-month period 26 Note: Risk-adjusted margin for Q4’08 as shown in the Earnings Release captures data from the acquisition date (Nov. 7, 2008) to quarter-end, and as such is ~1.5pts higher than the full quarter’s risk-adjusted margin
  27. 27. Significant PayPal – BML synergies Grow eBay GMV Accelerate merchant sales cycle Speed Bill Me Later consumer acquisition Turn transaction expense into revenue Decrease Bill Me Later fraud losses Reduce Bill Me Later cost of capital 27
  28. 28. Adjacent payments 28
  29. 29. Many sectors need payment solutions Mobile & Mobile & other devices other devices Banks Banks Businesses with Businesses with specialized specialized Governments Governments payment needs payment needs Social networks Social networks Non-profits Non-profits 29
  30. 30. PayPal platform enables developers 225k+ developers 100k+ developers 660k+ developers Millions of .NET developers Platform PayPal global Internet payments network 30
  31. 31. Tremendous growth ahead: TPV Global Total Payment Volume $100-120B Adjacent % Payments - 26 R 18 AG C Global $60B Merchant Services eBay 2008 2011
  32. 32. Tremendous growth ahead: metrics Global take rate Transaction expense Transaction Losses Great deals for Consumer funding choice Risk management merchants ‘05 ‘06 ‘07 ‘08 Future ‘05 ‘06 ‘07 ‘08 Future ‘05 ‘06 ‘07 ‘08 Future stable declines stable / down … ~60% transaction margin business
  33. 33. Tremendous growth ahead: margins 2009-10: margin decrease due to BML integration Medium term: margins return to 18-20% Longer term: margin expansion as the business scales over investments 33
  34. 34. Tremendous growth ahead: revenue 2009-2011 CAGRs BML/Adjacent pmts 40% range Merchant Services 30% range $2.4 $4-5 On eBay low single digits BILLION BILLION 2008 2011 34
  35. 35. An evolving industry 1 Powering global eCommerce 2 Unmatched advantages 3 Significant opportunity ahead 35
  36. 36. The world’s favorite way to pay and be paid 36
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