SAN FRANCISCO — EBay made its name as the biggest shopping site on the Web. But now, as its e-commerce business slows, it hopes to become the biggest online payments provider on the Web through its PayPal service.

If John J. Donahoe, eBay’s chief executive, has his way, PayPal will soon become the way that people pay for everything they buy on the Web or on their mobile phones. On Thursday, eBay is scheduled to announce its plans to open the PayPal platform to developers who want to build applications that use PayPal’s technology.

EBay’s payments business, which consists of PayPal and Bill Me Later, has become the company’s growth engine as e-commerce sales decline.

On Wednesday, eBay reported that net income in the second quarter, ended June 30, fell 29 percent to $327 million, or 25 cents a share, from $460 million, or 35 cents a share, in the same period a year ago. Revenue fell 4 percent, to $2.1 billion from $2.2 billion.

But eBay’s online payments business posted $669 million in revenue, an 11 percent jump.

In an interview, Mr. Donahoe said that opening up PayPal platform could transform the online payments marketplace. “No other global payments platform, online or offline, has been able to open up to third-party developers. And the effect on PayPal will be very comparable to the effect on the iPhone — we’ll see the exponential innovation and growth that comes with it as you release the creativity of those developers.” Read more…

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