We have often wondered how much money eBay makes off interest on funds in their control. It seems obvious that gaining a bit of a extra revenue is the reason that it takes 3 days to withdraw funds to a bank account, this really adds up considering they have 57 million active account holders. Now that PayPal is holding funds for some account holders for 21 days, there is a huge outrage over this issue.
CNN has just put out this article suggesting that PayPal makes under $10 million a quarter on interest, far less than the $1.8 billion that they make annually from fees.
How much money does PayPal make from interest on floating funds?
Category: General Posts| February 27th, 2008We have often wondered how much money eBay makes off interest on funds in their control. It seems obvious that gaining a bit of a extra revenue is the reason that it takes 3 days to withdraw funds to a bank account, this really adds up considering they have 57 million active account holders. Now that PayPal is holding funds for some account holders for 21 days, there is a huge outrage over this issue.
CNN has just put out this article suggesting that PayPal makes under $10 million a quarter on interest, far less than the $1.8 billion that they make annually from fees.