Head of eBay's PayPal unit steps down to join Facebook

SAN FRANCISCO Mon Jun 9, 2014 5:31pm EDT

PayPal President David Marcus speaks during a news conference in Tokyo May 9, 2012. REUTERS/Yuriko Nakao

PayPal President David Marcus speaks during a news conference in Tokyo May 9, 2012.

Credit: Reuters/Yuriko Nakao

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SAN FRANCISCO (Reuters) - David Marcus, who has led eBay Inc's fast-growing payments unit PayPal for the past two years, will step down this month to run Facebook Inc's messaging products, the companies announced on Monday.

EBay shares fell a little more than 2 percent in trading after hours. Under Marcus, PayPal has moved more aggressively into the physical world by developing a mobile wallet for consumers as well as point-of-sale systems for retailers.

The move marks Facebook's latest effort to bolster its private messaging features as it faces competition from a new crop of popular mobile messaging services such as Snapchat and Line. In February, Facebook stunned observers by announcing plans to acquire messaging service WhatsApp for $19 billion.

In the newly created role of Vice President of Messaging Products, Marcus will oversee the Messenger service within Facebook's social network as well as the free Messenger mobile app, said Facebook spokeswoman Vanessa Chan. Roughly 12 billion messages are sent every day on Facebook, and the Messenger app has more than 200 million users, according to the company.

"I'm looking forward to getting my hands dirty again attempting to build something new and meaningful at scale," Marcus said in a post on his LinkedIn page on Monday.

The move comes as PayPal, which has 148 million active users, faces tougher global competition from Amazon.com Inc, which launched a recurring payments program earlier on Monday, as well as Chinese e-commerce giant Alibaba Group Holdings Ltd, which is going public later this year.

In a blog post, eBay Chief Executive John Donahoe said Marcus was leaving behind a strong leadership team and PayPal was on track to meet its outlook for 2015.

(Reporting by Deepa Seetharaman; Editing by Marguerita Choy)

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Comments (1)
Breadie wrote:
smart rat. veddy smart rat leaving a ship on-its-way-to-sinking.

the PayPal fees are far to high for any normal run-of-the-mill merchant.

add in eBay – a rather large bit of PayPal’s business,,,, – and the total fees can easily reach 30% of the sales price.

not sustainable. not even close to competitive.

had a PayPal MasterCard. PayPal – the world’s large online payment service – did _not_ accept electronic payments from CheckFree. think on that for a minute….

my bank had to print a paper check and mail it to them.

which my bank did. then I got my statement with a late charge – which, in late January PayPal wished to blame on ‘the Christmas rush’

they get the checks, they pigeon-hole the paper, and then want to tell you your payment was late.

dumped their credit card, never want to do business with PayPal again.

Jun 09, 2014 6:52pm EDT  --  Report as abuse
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