PayPal To Expand Service In Europe

    May 22, 2007

Online payments company Paypal has received a banking license in Luxembourg and will move its European operations there.

The move will enable the company, which is owned by eBay, to increase the number of online retailers offering its service. With 23 percent of European online shoppers favoring PayPal and 100,000 retailers using the service, only a small number of major retailers are using the service.

"Our goal is to give European consumers more places to shop securely and conveniently across the Web by making PayPal available on virtually every retail Web site in Europe," said Brent Bellm, vice president of PayPal in Europe.

PayPal has 35 million customers in Europe with 15 million in Britain, making it the region’s biggest online shopper. Over half of Britain’s population is online and more than half also have a PayPal account.

PayPal has continued to grow even with competition from Google who launched its Checkout service last year. PayPal has over 130 million users worldwide.