PayPal Expects Mobile Payments to Hit $3 Billion This Year

PayPal expects to generate $3 billion in mobile-device payments this year, up from the company’s previous projection of $2 billion.

Owned by eBay, the online payments service last fall had projected that it would process $1.5 billion in 2011. While that projection was raised by half a billion to $2 billion later.

“Every week I look at the numbers, I get a sense of surprise,” said Laura Chambers, PayPal’s head of mobile. She attributes the increased mobile transactions to more smartphone adoption and familiarity with PayPal.

PayPal payments transactions grew 23% in the first quarter and took up $992 million, or nearly 40%, of eBay’s revenue.

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