PayPal revealed that they processed nearly $4 billion in mobile payments last year, up from a minuscule $25 million in 2008. To give you an idea of mobile commerce’s astronomical growth, PayPal initially predicted $1.5 billion in mobile payments for the year before raising projections to $3 billion in June.
With rival Square now processing $11 million a day (up from $4 million in July), we are very bullish on the mobile payments market. Forrester estimated in June that mobile commerce will reach $31 billlion by 2016, and even that may look conservative now. Yesterday at CES, eBay CEO John Donahoe said that PayPal expects to handle $7 billion in mobile transactions this year. We think mobile payments are on an exponential trajectory and they’ll do even more than they think.
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