PayPal was bought today for 1.5 billion in stock by Ebay.
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From a June 13 article:
Strong Second
Meanwhile, PayPal said it will "meet or slightly exceed" its earlier estimates of second-quarter financial performance.
The company said it now expects revenue of US$53 million to $54 million, up from its initial guidance of $52 million to $53 million provided in mid-April. On a pretax basis, PayPal expects either to break even or to report earnings of up to 5 cents per share. In addition, after one-time charges, including termination of a lease on its former headquarters, the company said it will report net earnings of up to $5.8 million.
PayPal noted that total payment volume for the quarter could be as high as $1.63 billion.
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This snip is taken from INSP's last quarter earnings report.
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Merchant services processed more than $1.3 billion in transactions during the quarter, up from the $1 billion reported last (quarter).
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I'm not sure the payment structure, cost structure, or revenue generation comparisons between PayPal and Authorize.net, so it is hard for me to compare the advantages and disadvantages of both as seen by the merchant, buyers, and sellers (and banks).
I do know PayPal's revenues were 60% derived from Ebay and the balance of 40% from smaller merchants.
Only two companies accounted for more than 10% of INSP's revenues and they were Verizon and Oveture, neither one in the online payment processing function.
So...PYPL processes ~ 1.66 billion in transaction and market cap of ~ 1.5 BILLION
Authorize.net process ~ 1.3 billion (last quarter) and has a market cap of 191 million (@.61 cents currently). This does not take into account that Authorize.net is only one of three business prongs going at INSP. |
