| iv id="body"> | | | | As part of the deal, eBay will also purchase up to |
| Recently eBay announced plans to buy VeriSign's | | | | 1 million VeriSign security tokens. Each token has |
| payment processing business for $370 million and | | | | constantly changing numbers that need to coincide |
| merge the processor with PayPal's operations. | | | | with a synchronized central server. These tokens |
| PayPal is already the largest online payment | | | | can be embedded in computers and other devices |
| company; however, VeriSign's processor would | | | | that along with a password, create a two-factor |
| make for a profitable asset, by enabling PayPal to | | | | authentication system. |
| compete with credit card companies known for | | | | Security has always been a costly issue for |
| raising retailer fees. The merge will also help take | | | | PayPal as they require a large team to deal with |
| PayPal beyond its core auction-based business to | | | | fraud. |
| now tackle small and medium-sized businesses. | | | | This merger is a huge step forward for PayPal. |
| VeriSign's payment gateway software creates a | | | | This shift will allow PayPal to process a greater |
| direct connection between web businesses and | | | | number of transactions through banks rather than |
| payment processors. These processors are | | | | credit cards and work with more businesses than |
| generally run by major banks, therefore cutting | | | | individual sellers. This in turn will lead to less credit |
| out the credit card business. The addition is | | | | card fees and potentially a lesser percentage of |
| expected to add $100 million to PayPal's top line in | | | | fraudulent sellers by working with registered |
| 2006. | | | | business owners. |