PayPal targets charities, schools for more bucks

Angus Kidman
22 July 2009, 5:32 PM


Having failed in last year's attempt to become a compulsory payment mechanism for eBay, PayPal is eyeing off a new source of potential cash: charities and schools.


At a series of developer events around Australia, PayPal has been promoting the notion that the non-retail sector represents its next big opportunity to add a few more dollars to its current $US60 billion annual turnover.

"Our next wave of growth is going to come from non-traditional markets" like government, education and charities, Glenn Lim, PayPal global head of alliance marketing, told attendees at the Brisbane event. Lim noted that few Australian non-profits currently have any kind of payment functionality on their sites.

"Here in Australia, 81% of charities have a web presence, but they're mostly informational. Only 22% will accept a donation."

To get PayPal 'donate' buttons whacked on all those school and charity sites, the eBay-owned service is going to need to beef up its local developer presence. While PayPal has run a developer scheme since 2001, there are only four Australians currently certified under the scheme.

If the plan works, it will help PayPal meets its stated goal of doubling its revenues in three years, a projection that's going to be hard to meet purely from auction sales.

While local listings on eBay must now offer PayPal as an option, eBay's controversial plans to make it the sole payment mechanism were ditched after concerns from the ACCC. Two of the key architects of the widely mocked plan — managing director Simon Smith and trust and safety director Alastair MacGibbon — have since left the company.


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FostWare (New user):

It's usually not the charities dislike of technology that is the reason for the lack of payment systems. The laws and regulations for charity status require monies be totally separated from normal cash flow, every transaction should be accompanied by a legal receipt, and every cent must be traceable and accountable. The extra organisation and double checking involved in websites means it's too difficult for legal charities - especially when the current financial climate is the prime reason for the drop in donations.

24 July 2009, 12:22 AM (2 years ago)report abuse Send to a friend reply

The Big Baboo (User):

I agree with you 100% there "FostWare" They could say that receipt that you printed off wasn't legal and you could get into all kinds of bother.
Still,printing your own is better than the thermal paper "crap" receipts
that you get given now by 90% of organisations.

24 July 2009, 8:21 AM (2 years ago)report abuse Send to a friend reply

Agar 2 (New user):

Why has'nt eBay informed its user in the EU about the EU Directive,Article 52(2) which comes into affect from the 1st november 2009. The payment service provider(PayPal) shall NOT prevent the payee(seller) from requesting from the payer(buyer)a charge or from offering him a reduction for the use of a given payment instrument. This means that surcharging CANNOT be forbidden by payment service providers, PayPal user agreement 4.5. will eBay be Acting Illigaly from the 1st november 2009 by imposing their user agreement on to Sellers?

29 September 2009, 6:34 PM (2 years ago)report abuse Send to a friend reply

Agar 2 (New user):

PayPal and its user agreement 4.5 No Surcharges,Will this become illegal from the 1st november 2009 across the EU? Article 52(2) the payment service provider shall not prevent the payee from requesting from a payer a charge or from offering him a reduction for the use of a given payment instrument.This means that surcharging CANNOT be forbidden by payment service providers.

29 September 2009, 6:34 PM (2 years ago)report abuse Send to a friend reply

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