In recent news, eBay is set to drop PayPal as its main payment processor for, they say, the sake of their sellers and buyers. This news comes with the fact that people who now purchase products on eBay will no longer need to leave their website to pay for their goods. It also means a reduced amount of processing costs to eBay sellers too. The so called ‘online giant’ broke this news in their latest blog post. For eBay sellers this move means that their will be a considerably lower cost to the processing of each payment after the transition to eBay’s intermediated payments model.
They claim that sellers will benefit largely from a much more simple pricing structure and easily predictable access to their funds. As well as this, eBay will now become a central place to manage their whole business. eBay promises to provide inclusive payment information and breakdowns all in one place to make it easier for sellers to track and manage all of their transactions and customer interactions through the eBay platform. They hope to further achieve great buyer reach and improved conversion by expanding payment options into a bigger array of geographies to improve conversion.
In regards to people to purchase through eBay, their promise to their buyers includes more payment options at the checkout. EBay want to provide their customers with a much larger choice in payment plans and options as well as a much more integrated checkout experience. As eBay will manage the whole experience rather than just a specific part of it, the process will be much more streamlined and overall a better experience for its customers.
In a direct quote from eBay they say “We have signed an agreement with Adyen to be its primary partner for payments processing globally, including in North America.” they continue “Adyen powers payment processing for a number of the world’s leading global marketplaces and brings to this partnership a broad global footprint with a flexible and scalable technology platform. Adyen’s wide geographic reach and experience at scale extends to more than 150 currencies and over 200 methods of payments.”
Thankfully to those who live by PayPal, eBay have not cut ties with them completely and have issued a statement regarding their continued partnership and that they are still on good terms “Additionally, eBay and PayPal have aligned on terms to offer PayPal as a way to pay at checkout on the eBay intermediated model until July 2023. PayPal will remain an important partner to eBay.”. It seems from this that buyers will ultimately have the best of both worlds and it will not affect them negatively. As for eBay’s sellers, this more holistic and inclusive process will be very appealing to their current small businesses and outlets.