DOW JONES NEWSWIRES
EBay Inc. (EBAY) named David Marcus as the president of its PayPal division, replacing Scott Thompson, who left the company in January to become chief executive of Yahoo Inc. (YHOO).
Marcus has been leading PayPal's growing mobile payments business and will report to Chief Executive John Donahoe. The new appointment is effective Monday.
PayPal has been responsible for much of eBay's recently rising revenue, and the division is on pace to become eBay's largest business. The payments operation has sought to stay on the growth path, getting into new markets such as mobile wallets.
"David is the right leader for PayPal," Donahoe said. "He is a successful technology entrepreneur with a passion for great products that engage and delight customers."
Marcus joined PayPal in August 2011 after the company completed the acquisition of Zong, a mobile payments provider, where he was CEO and founder.
Thompson's appointment earlier this year to lead Yahoo was considered a surprise as the struggling Internet pioneer looked to turn around its core online-advertising business and remain a public company.
In 2011, PayPal processed $118 billion in payments from more than 100 million users, including $4 billion in mobile payment volume.
Shares were off a 29 cents at $36.95 in early trading and have risen 23% this year.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356; firstname.lastname@example.org