This document contains the transcript of a presentation discussing PayPal's business. It states that the presentation may contain forward-looking statements about Q3 2009 performance and future growth that involve risks and uncertainties. Actual results could differ for various reasons, including global economic conditions, foreign exchange rates, acquisitions, divestitures, competition, managing a large diverse business, regulatory risks, technology upgrades, and litigation risks. More information on risk factors is in eBay's annual and quarterly SEC filings. All information is as of July 22, 2009.

1. Scott Thompson
September 17, 2009

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. The Global Internet
Payment Network
3

4. An evolving industry
1 Powering global eCommerce
2 Unmatched advantages
3 Significant opportunity ahead
4

5. 5

6. Traditional payments not designed for the web
Helga
Review &
Complete
6

7. Traditional payments not designed for the web
Helga • Fraudsters
• ID theft
7

8. Traditional payment networks are limited
8

9. Worldwide accessibility
• 190 global markets
• 17 local language sites
• 19 currencies
9

10. Unmatched advantages & network effects
Internet Fraud
technology expertise
PayPal
network
effects
Closed-loop Global
data connections
10

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. 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. How we’ll get there
Global eBay
Global
Merchant Adjacent
Services payments
13

14. Global eBay
14

15. Penetration growing on eBay
73-78% 2011
64.4% Q209
eBay Seller Coverage
global penetration
58% 2008
SHARE
Consumer Preference
15

16. Significant opportunity in international markets
2008 eBay aGMV & PayPal penetration*
$29B
$24B
79%
41%
North America International
16
*Includes shipping and handling

17. Global Merchant Services
17

18. Gaining share in Global Merchant Services
8-9% 2011
Merchant Coverage
5% 2008
SHARE
Consumer Preference
18

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. Serving the worlds largest online brands
PP # of top 50
online merchants
US 21+
W Europe 13+
Asia 25+
20

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. Bill Me Later complements PayPal
• Helps PayPal drive coverage
& preference
• Helps merchants drive sales
22

23. Sales lift for merchants
Sales lift through
promotional
offers
23

24. Fast, convenient, secure credit for consumers
24

25. Structural advantage in risk management
Credit card
$$$$$
$
$$
25

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. 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. Adjacent payments
28

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. PayPal platform enables developers
225k+
developers
100k+
developers
660k+
developers
Millions of
.NET developers
Platform
PayPal global Internet payments network
30

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. 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. 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. 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. An evolving industry
1 Powering global eCommerce
2 Unmatched advantages
3 Significant opportunity ahead
35

36. The world’s favorite way to
pay and be paid
36