SAN FRANCISCO (Reuters) - EBay Inc reported a better-than-expected 32 percent increase in revenue, driven by increased activity on the company's online marketplaces and rising transactions through its PayPal payments network.

EBay reported third-quarter revenue of $2.97 billion versus $2.25 billion a year earlier. Wall Street expected revenue of $2.91 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Alistair Barr)