eBay officially completed its acquisition of PayPal yesterday in a deal valued at $1.5 billion. The transaction was approved Thursday by the holders of approximately 65% of the outstanding shares of PayPal common stock. PayPal will continue to operate as an independent brand. eBay’s current payment service, eBay Payments by Billpoint, will complete the phase-out of its operations in the first half of 2003. PayPal’s gaming business will be phased out by the end of 2002. Following the completion of the merger, PayPal’s CEO Peter Thiel resigned and Matt Bannick was named eBay’s SVP of global online payments, assuming all of Thiel’s responsibilities. For the full year 2003, eBay currently expects that net revenues for the new Payments segment, which includes PayPal, will be approximately $300 to $310 million. As of October 1, PayPal had 20 million member accounts, including 3.7 million business accounts. For complete details on PayPal’s prior performance visit CardData ([][1]).


Sunoco & TeleCheck

Sunoco has deployed TeleCheck Services’ “Electronic Check Acceptance” service and “Eclipse” payment terminals in 110 Sunoco APlus convenience stores with the plan to expand to more of its nearly 1,000 convenience stores. The ECA service converts a customer’s paper check into an electronic item at the point of sale and delivers funds directly to the merchant’s account in about two business days.

Web ACTION Payments

NACHA announced yesterday it is moving into its next phase of a project to build and test a bank-centric Internet payment system developed by participating members of “Project ACTION.” A key feature of “ACTION” is that a consumer or a business would initiate a payment on the Internet via its own financial institution, instead of providing financial information to a merchant or biller and authorizing a debit to its account. This is also known as a “credit-push” payment model. Account numbers would not be provided to Internet merchants or billers, but instead would remain with their financial institutions. Internet merchants and billers would benefit by receiving real-time payment guarantees and receiving payment by an irrevocable ACH credit. The group estimates the Web payment system could produce new banking industry revenue of $1 billion in its 5th year of operation from Internet payment and authentication products and services. In the new phase underway, NACHA plans to form a limited liability corporation, recruit financial institution owners of the corporation, issue a request for proposals, build the “ACTION” infrastructure, and conduct live transactions.

Hyatt & MasterCard

Hyatt Corporation has re-launched its “Faster Free Nights” promotion in partnership with MasterCard offering “Hyatt Gold Passport” unlimited free nights between now and February 28, whenever guests pay for their stay with a MasterCard. There is no limit to the number of free nights that members can earn. Free nights can be redeemed easily at any participating Hyatt worldwide. Awards are available electronically (on-line) and are paperless.