Reuters reported eBay Inc. CEO John Donahoe raised expectations for the company's mobile processing. At a conference earlier this week, Donahoe said the total payment volume (TPV) made via mobile devices through its PayPal subsidiary would be closer to $3.5 billion in 2011, up from $3.0 billion.

While still a small part of PayPal's TPV (the company processed $92 billion in 2010), mobile payments is becoming a much more important part of PayPal's overall strategy.

PayPal will release its Q3 2011 results this afternoon after the markets close.

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