eBay Inc. said its payments unit, PayPal Inc., is growing faster off its auction site than it is onsite.
First-quarter revenue from the payments unit rose 32%, to $582 million, from a year earlier. Payment volume on eBay rose 17%, and for merchants outside eBay it rose 61%. PayPal's overall quarterly volume rose 34%, to $14.4 billion, from a year earlier.
"These figures are impressive, and we believe there is even more potential for PayPal to expand both on and off eBay," John Donahoe, eBay's chief executive, said in a conference call Wednesday. Mr. Donahoe became CEO of the San Jose company on March 31.
He also said that eBay's recently announced plan to restrict payment options in Australia, so most auction purchases would have to be completed with PayPal, would reduce fraud and "lead to increased transaction volume." If the new rule works out, eBay may make similar moves elsewhere, he said.
