PayPal plans to be in more than 2,000 Home Depot stores by March


PayPal(s ebay) has said 2012 will be a learning year as it rolls out its in-store payment system. But that doesn’t mean it will all be small pilot programs this year. A company spokesman told Bloomberg that it expects to be in more than 2,000 Home Depot(s hd) stores by March.

PayPal said on its quarterly earnings conference call earlier this week that it is expanding its Home Depot trial this week to 51 stores, mostly in the Bay Area. But now, it’s saying that it will extend service to all Home Depot stores, which numbers more than 2,200 in the U.S.

PayPal doesn’t expect its in-store system to affect revenue this year, but next year is when it plans to really scale up. John Donahoe, eBay’s CEO, who is interim PayPal president since Scott Thompson left for Yahoo(s yhoo), said on the earnings call that he’s looking to set the stage for a big worldwide rollout next year that covers every vertical.

PayPal has made some key moves in establishing partnerships with point of sale software and hardware companies such as Ingenico and AJB Software Designs, which allows it to scale up quickly by having the system ready to go when retailers sign on. It’s also been talking to VeriFone(s pay), which appears to be close to announcing an agreement soon.

If it can line up a lot of retailers, PayPal has a chance at changing the way people pay, shifting many purchases away from credit and cash. And it’s an alternative to the NFC-based mobile payments systems from Google Wallet (s goog) and Isis. PayPal is increasingly becoming the engine of growth for eBay, increasing revenues by 28 percent last quarter. PayPal expects mobile payments volume will grow to $7 billion in total this year and that doesn’t factor in PayPal’s in-store initiatives. If PayPal can get the in-store system right, that could make PayPal the dominant business for eBay.


Philip Charles Cohen

“If it can line up a lot of retailers, PayPal has a chance at changing the way people pay, shifting many purchases away from credit and cash.”

Ah, the pathological delusions of the “eBafia Don”.

And where do you think the clunky PreyPal gets the payer’s funds from for making such payments? They get it by charging the payer’s credit card or by making a direct debit on the banking account of those users foolish enough to give them details of their banking account. So please tell me, where is the shift?

PreyPal is simply a parasite, clinging precariously onto the back of the banks’ existing payments systems. The idea that this clunky operation could ever seriously threaten Visa/MasterCard or even any of the independent credit card issuers, is simply ludicrous. This “world wide rollout” talked about by Donahoe is not even simply the result of this fool’s delusions, it is a quite deliberate confidence trick on the investing community.

The nonsense that habitually emanates from the eBay Dept of Spin really is quite comical. Why do you think Scott Thompson abandoned eBay? I’ll tell you why. Because the eBay Marketplace is making no headway; it has been dead in the water since 2008, when the headless turkey from Bain & co got hold of the tiller, and Thompson, quite sensibly, decided it was time to move on.

eBay / PayPal / Donahoe: Dead Men Walking

Philip Charles Cohen

Wot, more nonsense about the clunky PreyPal direct from the eBay Dept of Spin.

Dream on Donahoe …

eBay / PayPal / Donahoe: Dead Men Walking

Comments are closed.