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eBay's (NASDAQ:EBAY) PayPal may be onto something huge. Last week, it partnered with Comcast (NASDAQ:CMCSA) and TiVo (NASDAQ:TIVO) to enable TV viewers to buy products and donate money from their TV sets using their remote controls. Soon, viewers with PayPal accounts will be able to click on TV commercials and ads and buy advertised goods and services directly from their TV sets.

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PayPal is already huge online and is seeing transaction volumes grow rapidly on mobile devices. Television could be the next big market it could tap into, and could drive significant transaction volumes, if it takes off.

This is not PayPal's first attempt into T-commerce (e-commerce powered by TV). It had earlier launched an app which enabled tablet users to buy products shown in TV ads by entering their provider and channel details. However, this new workflow is much easier and could see greater adoption. TV ads are a huge market, and a majority of consumers still make purchase decisions based on advertisements they see on television, and so giving them a way to buy the advertised products effortlessly could be a huge opportunity.

PayPal could generate a significant amount of revenue by charging a small cut on each transaction.

PayPal accounts for nearly 30% of eBay's overall value. We currently have a $48 Trefis price estimate for eBay, which stands nearly 10% above the market price. eBay competes primarily with Google (NASDAQ:GOOG), Square, Intuit GoPayment and other competitors in the payments space.

Disclosure: No positions

Source: Is TV Commerce PayPal's Next Big Opportunity?