PayPal Revenue Rises 32%, Boasts Early Adoption of 'Here' Card Reader

PayPal has received a strong early response for its new mobile payment system, the company said Wednesday.

The eBay (EBAY) unit's revised mobile app, which allows merchants to accept card payments using an add-on reader or the phone's camera, was released last month and has already attracted more than 200,000 merchants, said John Donahoe, eBay's president and chief executive, in a conference call Wednesday.

PayPal has also been testing a point of sale payment system with Home Depot and other retailers.

PayPal recently selected a new president, David Marcus, to replace Scott Thompson, who left in January to head Yahoo (YHOO). Marcus, who became PayPal's president April 2, previously headed Zong, a mobile payments company PayPal bought last year.

"David is a successful technology entrepreneur with a real passion for innovation, great products and consumer engagement," Donahoe said, according to a transcript. "He leads with a founder's perspective."

PayPal's net revenue rose 32%, to $1.3 billion, in the first quarter from the same period a year earlier.

eBay's net revenue rose 29%, to $3.3 billion. Its net income rose 20%, to $570 million.