eBay saw its fourth-quarter sales and revenue exceed analyst estimates thanks in part to the performance of its fast-growing PayPal unit which saw its quarterly revenue grow by 28 percent to US$1.24 billion. The number of transactions it processes via mobile phone is a major driver for PayPal. The unit handled US$4 billion in mobile payment volumes in 2011, up from US$750 million in 2010. In 2012 the payments provider aims to process US$7 billion in mobile payments. PayPal revealed its improved mobile performance at last week’s CES. PayPal was the eBay unit with the fastest revenue growth in the fourth quarter. Its number of registered users also increased to 106.3 million.

eBay reported fourth quarter revenue up 35 percent to US$3.38 billion compared with analyst estimates of US$3.32 billion. Profits excluding certain items was 60 cents a share (expressed as net income it was US$789 million) compared to analyst projections of 57 cents. Separate from PayPal’s efforts, eBay’s own mobile business is also growing. The auction site reported a record US$5 billion in transactions through mobile devices during 2011 thanks to increased adoption of its mobile apps and greater customer engagement.