eBay to launch its new payments system, as PayPal agreement expires

Tuesday 21 July 2020 14:46 CET | News

eBay has planned to roll out new payments system, as its operating agreement with PayPal has officially come to an end.

According to MarketWatch, although eBay and PayPal split into two separate companies in July 2015, they maintained a five-year operating agreement. The agreement established that PayPal would remain eBay’s primary payments partner. However, in January 2018 the companies announced that they would not be renewing that agreement upon its expiration, which took place recently.

Regarding eBay’s initiative, it has been reported that 42,000 sellers are using the new payments platform and it had processed more than USD 4.7 billion in volume through the ‘managed payments’ solution. Moreover, the company had 250,000 more sellers who were enrolled on their platform upon the expiration of the agreement with PayPal, as the agreement had previously limited the extent to which eBay could run its own payments system.

The company hopes that the new payments system, which enables payments through PayPal or various other payment methods, might improve conversion rates by giving shoppers more options.

Furthermore, eBay is partnering with payments provider Adyen for its new system. However, the agreement is different than the one made with PayPal, as eBay is taking on aspects like risk management and payments customer service, Market Watch reported.

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Keywords: eBay, launch, payments system, PayPal, agreement, managed payments, payment methods, shoppers, online shopping, Adyen, risk management, payments customer service
Categories: Payments & Commerce
Countries: World
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