PayPal Expands

PayPal said this morning it has surpassed the 20 million account holder mark, which is double the number of registered members it had just one year ago. The company also expects that by mid-October more than $10 billion will have been sent by PayPal members through the network since launch of the service in October 1999. As of October 1, 2002, PayPal had 20 million member accounts, including 3.7 million business accounts. More than $3 billion was sent through the PayPal network in the first half of 2002. Tomorrow, PayPal will hold a special meeting of stockholders to vote on the proposed merger with eBay Inc. and Vaquita Acquisition Corp. (CF Library 8/22/02).

eBillit Inks Clients

San Jose-based eBillit says it has won seven new Internet service and content providers as clients in the third quarter and that ISP and content providers are typically increasing their rate of customer acquisition and revenue growth by more than 35% by adopting eBillit’s payment options and end-to-end services. The company’s popular PhoneBill payment solution has been a major driver of revenue optimization and new customer growth. PhoneBill addresses a huge untapped global market opportunity for a practical alternative to credit cards.

Online Business Banking

Chasing small businesses to bank online may be produce less loyalty. A new study found that many entrepreneurs banking online don’t hesitate to chase the best rates for money markets, CDs, payment cards, and a host of other services. The study, by NFO WorldGroup, also found that typically, 81% of small businesses hold all deposits and investments at one financial institution. For those banking online and actively managing cash, that figure plunges to 60%. Only 22% of small businesses report being actively solicited for their excess deposit and investment dollars, leaving them to search online for the best deals. An alarming 78% of small business owners banking online are actively seeking competitive offerings, even if they are perfectly satisfied with their main financial institution. The study revealed that more than three in four small companies are now online, with 25% banking online, more than double the number that were two years ago. The research was conducted among 10,000 U.S based small businesses between May and September 2002.

Simon VISA Gift

Simon Property Group is expanding its “VISA Gift Card” program to 43 shopping malls with a complete rollout scheduled to all remaining Simon malls next year. During the 12-month pilot program conducted in four Simon malls last year, the company says it experienced a sales increase of more than 60% compared to regular gift certificate sales during the prior 12 months. Simon is also leveraging the “Simon VISA Gift Card” through additional marketing efforts including VISA’s promotion, “Let Me Send you to Hawaii, Mexico or London. My Treat!” Between October 1-31, shoppers at 47 Simon malls will have the chance to use their VISA card to purchase $250 worth of “Simon VISA Gift Cards” and be eligible to receive two free roundtrip airline tickets to Hawaii, Mexico or London. The alliance between Simon and VISA was formed in 1997 in an effort to drive purchasing and brand loyalty among the 100 million shoppers who make more than 2 billion visits to Simon malls each year. The current contract with VISA will expire in October 2003. Simon Property currently owns or has an interest in 249 properties in 36 states. (CF Library 11/17/01)