E-bay said it has launched a buyer protection security feature for its British business unit, aiming to attract bigger-spending traders to its booming UK marketplace.
This week, the company will introduce a buyer protection fee for goods purchased on eBay UK through the company's online payment system PayPal, thus insuring customers for damages amounting up to 250 pounds ($464.50).
The move comes as online retail sales across Western Europe is exploding; the level of online fraud is booming too.
"Our research shows that a third of online users are reluctant to spend more than fifty pounds online. This is a way to appease those customers and get them to spend more online," Geoff Iddison, chief executive of PayPal Europe, told Reuters.
EBay says the rate of fraudulent transactions for its online payment service PayPal is less than one-half of one percent -- or nearly four times as safe as the typical online transaction at the top 150 Internet retailers.
EBay has become a highly profitable online auction house where buyers and sellers trade everything from wrist watches to tractors. Its German and UK units are two of the fastest growing units and are crucial to its longterm growth plans.
The company's primary aim for 2004 is to expand its PayPal business across Europe, a region where many buyers still use electronic funds transfers and debit cards to seal deals.
While PayPal accepts payment in six currencies -- including dollars, euros and sterling -- its site is in two languages: English and German.
Earlier this month, the American Internet company incorporated its online payment business in the United Kingdom, gaining accreditation from Britain's Financial Services Authority.
This week, the company will introduce a buyer protection fee for goods purchased on eBay UK through the company's online payment system PayPal, thus insuring customers for damages amounting up to 250 pounds ($464.50).
The move comes as online retail sales across Western Europe is exploding; the level of online fraud is booming too.
"Our research shows that a third of online users are reluctant to spend more than fifty pounds online. This is a way to appease those customers and get them to spend more online," Geoff Iddison, chief executive of PayPal Europe, told Reuters.
EBay says the rate of fraudulent transactions for its online payment service PayPal is less than one-half of one percent -- or nearly four times as safe as the typical online transaction at the top 150 Internet retailers.
EBay has become a highly profitable online auction house where buyers and sellers trade everything from wrist watches to tractors. Its German and UK units are two of the fastest growing units and are crucial to its longterm growth plans.
The company's primary aim for 2004 is to expand its PayPal business across Europe, a region where many buyers still use electronic funds transfers and debit cards to seal deals.
While PayPal accepts payment in six currencies -- including dollars, euros and sterling -- its site is in two languages: English and German.
Earlier this month, the American Internet company incorporated its online payment business in the United Kingdom, gaining accreditation from Britain's Financial Services Authority.
