While its core e-commerce business -- Marketplaces -- continues to show steady growth, PayPal has been the show stopper growing much more quickly than any of eBay's other businesses.
In its second-quarter earnings conference call Wednesday, we will be watching closely how eBay plans to extend its lead in the payments space as well as grow its e-commerce businesses. We will look out for any announcements regarding performance in the last quarter of Paypal Here, its new mobile card payment offering which enables small businesses to accept card payments.
Paypal is quickly catching up with Marketplaces as has been observed each quarter. In the first quarter PayPal total payment volume increased to $34 billion, up 24 percent year over year, with 110 million active registered accounts. We expect an increase in the total registered accounts, payments per account as well as the average payment amount, which should lead to a significant increase in its total payment volume in the coming years. EBay made two major announcements late in May which augur well for PayPal. The first announcement was its partnerships with VeriFone (PAY) and Equinox which are the No. 1 and No. 3 makers of Point-of-Service terminals. This gives PayPal access to Verifone's 5 million terminals in the U.S., one million of those being high volume points of sale. In addition, Verifone is used by 80% of the top 200 retailers in US. While not expected to have immediate benefits, these deals show PayPal's immense future potential. The second announcement was about 15 national retail stores agreeing to accept PayPal as a payment method. These include Abercrombie & Fitch (ANF), Advance Auto Parts (AAP), Barnes & Noble (BKS), Foot Locker (FL) and J.C. Penney (JCP), among others.