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SINGAPORE: The world's largest online marketplace eBay is planning to more than double its business in Asia over the next few years.
The aggressive plans come after the company saw its mainstay e-commerce business as well as its money transfer arm PayPal grow strongly despite the economic crisis.
Almost half of the world's internet users live in Asia and the growing affluence in the region represents a significantly untapped market for the online marketplace eBay.
It predicts that more consumers are looking to stretch their dollar through online shopping.
With that, eBay's money transfer business PayPal, which accounts for a third of its revenues, is also expected to do well.
John Donahoe, president & CEO, eBay, said: "Even in the face of the global economic recession, both eBay and PayPal cross border business are growing greater than 50 per cent.
“So we have set goals to more than double in the Asian region over the next three years and I'm more than comfortable that we are going to exceed that."
Declining to give actual figures, eBay does say that in 2009, more than half of PayPal's growth is expected to come from outside the US.
There are about 12 million PayPal accounts currently in Asia and that number is set to grow.
To cater to regional demand, eBay has already boosted the number of currencies that PayPal can transact in.
Just this month, it added the Taiwan dollar, Philippine Peso, Malaysian Ringgit and Thai Baht to the existing stable, which include the Japanese Yen, Chinese Yuan and Singapore Dollar.
The other existing currencies are the New Zealand Dollar, Australian Dollar and Hong Kong Dollar.
eBay has already set ambitious targets for itself and its PayPal business.
Mr Donahoe said: “Over the next three to five years, eBay is going to be a US$5 to US$7 billion business with 45 per cent good margins. We envision PayPal doubling in that time and so over time PayPal will grow a little bit faster than eBay.
“By 2011, we envision PayPal to be a US$4 to US$5 billion business with 18 per cent to 20 per cent margin. Both of these brands are global brands that help meet the needs of consumers' worldwide. 20 per cent of both businesses are driven by cross border trade."
eBay already has a presence in Australia. It's also in the midst of receiving regulatory approvals in Japan and focusing on the domestic payment market in India. - CNA/vm
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