eBay reported earnings yesterday including results for PayPal. PayPal payment volume in the fourth quarter was $3.7 billion coming from 41 million registered PayPal users. This payment volume represented 22% growth in volume from the prior quarter and a 74% increase from the same quarter a year earlier. PayPal's average ticket was slightly over $54. Supporting eBay's continued auction growth, 69% of PayPal's payment volume was auction-related, up from 67% in the prior quarter.
PayPal's revenues on that payment volume were $130 million representing a gross revenue of 3.52% of payment volume. This represented a 23% increase over the third quarter and a 68% increase over the same quarter a year earlier.
PayPal's user base grew at ten percent over the prior quarter and 49 per cent over the same quarter in the prior year. PayPal added about 42,000 new users each day during the fourth quarter.
PayPal's transaction loss rate jumped in the fourth quarter from 0.22% in the third quarter to 0.31% of payment volume in the fourth quarter -- totaling $11.5 million. Other expenses dropped slightly from 1.25% of payment volume to 1.23% indicating further economies of scale being achieved. PayPal generated about $57 million in profit for eBay during the quarter running at a margin of about 43% pre-tax.