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eBay is dropping PayPal as its main payment provider - TechAmok

eBay is dropping PayPal as its main payment provider - [briefly]
09:29 AM EST - Feb,01 2018 - post a comment

eBay has announced it is moving away from the payment service. eBay said it had signed an agreement that will see Adyen become its primary payments processing partner. The Amsterdam-based company, which offers back-end payment services to businesses, counts Netflix, Spotify, and Uber among its customers.

Adyen will offer an integrated payments solution within eBay itself, meaning you won't have to log into a separate website for transactions. This should make paying on eBay a smoother experience and bring it in line with other retailers such as Amazon. The good news for most users is that the move will result in reduced payment processing charges, which can eat into sellers' profits. Despite charging less, eBay is expected to add $2 billion of revenue to its business once it starts taking the processing fees, according to Recode.

The new eBay payments system will arrive "on a small scale" in North America starting the second half of this year, before expanding in 2019 and each following year until 2021, when eBay expects the majority of customers to have transitioned. The company has negotiated new terms with PayPal that will see it remain as a payments option until July 2023, though it won't feature as prominently. Ayden brought in net revenue of $178 million in 2016, compared to PayPal's near $11 billion. It's thought that eBay might take an equity stake in its new payments partner, which is heading for an IPO this year.



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