My pal, your pal, everyone's Paypal

The pitch is oh so tempting: "Overwhelming market lead and brand awareness position Paypal as the company most likely to establish the long awaited and critical e-cash standard for internet purchases."

So claims a Gartner Group report published today - great news for the e-payment company which has shot to fame on the back of eBay's auction site.

The report couldn't have come at a better time, as Paypal faces a nerve-wracking floatation on the Nasdaq tomorrow.

The IPO could be make or break for the Connecticut start-up which boasts 13 million users and annual revenue of over $100m, but suffered losses of $108m last year.

Paypal is one of a very few dot-coms to brave floatation in the last 12 months. But the company will take heart from recent signs that the turbulent waters may be calming down.

Positive results from Amazon, eBay and Priceline have surprised and cheered investors and the activity of Paypal's large user base - an estimated 90 per cent of the email payments market - shows that even if analysts have cooled on the internet the public has not.

Auctions, gambling and pornography make up the vast majority of the service's activity, all good, healthy internet markets, but potential investors might be advised to keep an eye on regulatory moves in the US which threaten to curtail the freedom of Paypal and its markets.

Paypal could also suffer significant setbacks from fraud and disputes between senders and then there's the aggressive competition from big brand rivals such as Mastercard and Citibank looming like a dark cloud on the horizon.

But in the spirit of Gartner's positive report - let's face that hurdle when we get to it. Until then, here are some more of those comforting analysts' words.

"Paypal will likely remain the dominant service provider in this market. When it reaches 25 million users large e-tailers may be forced by a loyal and satisfied consumer base to begin accepting Paypal as an alternative to credit card payments."

That's the independent point of view, but it's up to you to decide whether to believe it or not.

Read more on the run-up to the IPO, here:
Paypal IPO tests turbulent tech markets
http:/www.silicon.com/a51062
Another dot-com to brave the IPO waters
http:/www.silicon.com/a50023
The end of free online payments - by Paypal decree
http:/www.silicon.com/a48935
Paypal hopes to find favour on Nasdaq
http:/www.silicon.com/a47845