In an unsurprising move, despite best efforts to keep the companies joined, eBay announced it will split its PayPal unit into a separately traded company in 2015.The move marks the end of what has been seen as an awkward partnership since eBay acquired PayPal for $1.5 billion in 2002. The deal was initially pitched as a way for eBay to boost PayPal transactions by driving its auction participants toward the online payment service. But eBay couldn’t realize any significant merger benefits beyond pushing traffic.
Non-cash payments volumes are expected to grow 9.4% to reach 366 billion transactions in 2013, fueled by strong growth in developing markets and the use of credit (up 9.9%) and debit cards (up 13.4%).
With the continued acceleration of electronic and mobile payments growth and ongoing regulatory pressures, the payments industry is seeking to find new and innovative ways to support customer demands, according to the 10th annual World Payments Report 2014 from Capgemini and Royal Bank of Scotland (RBS).