Zynga: PayPal’s Second-Largest Merchant in 2009

A surprising fact came up at last week’s 2010 Media Summit in New York. An eBay spokesman said that Zynga was PayPal’s second-largest merchant in 2009, following eBay itself. Overall, PayPal processed about $500 million in virtual goods payments last year, according to the estimate of Citi analyst Mark Mahaney, who wrote a recap of the summit.

It’s not clear whether Zynga came in second based on the number of transactions or the total amount processed, but it’s probably the latter. Either way, the company is leading a whole new market onto PayPal.

The payments company’s total volume is over $60 billion per year, by the way, much of which comes from eBay — the auction site is still huge, despite its problems in recent years. Much of the rest of PayPal’s income probably comes from hundreds of thousands of much smaller sources, so it’s no surprise that Zynga could reach number two so quickly.

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