eBay ditches PayPal for Adyen
What the good fintech can giveth, it can taketh away. eBay has given PayPal the boot and turned to Dutch firm Adyen as its primary processing partner.
Looking to sweeten this bitter pill, eBay says PayPal, a “long-time” partner, will be an option at the checkout for its buyers. But I doubt that tastes great.
The news comes on the same day (1 February) that PayPal got itself a handy digital deal with Bank of America Merrill Lynch. Ah well.
Back to eBay, and it says it has signed an agreement with Adyen. Via this deal eBay users “do not need to take any action at this time” as the “transition to full payments intermediation will be a multi-year journey”.
It reckons this intermediation will bring benefits for eBay sellers – such as a simplified pricing structure, and “more predictable access” to funds.
According to eBay, it will begin intermediation on a small scale in North America starting in the second half of 2018, expanding in 2019 under the terms of the operating agreement with PayPal.
In 2021, eBay states that it expects to have transitioned most marketplace customers to the new payments service.
As eBay gets closer to the initial phase, it will share more details about this process and next steps for sellers.
