PayPal's efforts to move beyond merely being the payment tool for Ebay got a big boost on Wednesday when Barnes & Noble.com said it would accept PayPal. The move could also help Barnes & Noble.com attract a younger demographic, which tends to be more comfortable with alternative payment methods and that sometimes have less easy access to traditional credit cards. That's a good thing for retailers given the much lower payment fees associated with PayPal.
The news is not that big a deal for Barnes as retail partners of PayPal don't typically see a huge revenue increase, but it certainly helps PayPal establish itself beyond Ebay, said Bruce Cundiff, a senior analyst for Javelin Strategy & Research and a former Jupiter Research analyst. PayPal is "certainly trying to focus on off-Ebay volume. I've heard that between 75 percent and 80 percent of PayPay revenue is still Ebay," Cundiff said. "They're really been trying to balance that out for a number of years."