e bay to drop paypal as its main payment provider

[1949threepence]

In a move to cut costs for sellers, and to offer an integrated payment solution, e bay have signed a payments contract with Adyen, a Dutch based company. Paypal will still be available on e bay as a payment option up to July 2023, but given the seller costs, I'd imagine it will not be offered by many vendors, if Adyen is cheaper. Unless they have no choice.

Interesting !

link

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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.

 

 

 

 

 

 

Edited February 1, 2018 by 1949threepence

[RLC35]

4 hours ago, 1949threepence said:

In a move to cut costs for sellers, and to offer an integrated payment solution, e bay have signed a payments contract with Adyen, a Dutch based company. Paypal will still be available on e bay as a payment option up to July 2023, but given the seller costs, I'd imagine it will not be offered by many vendors, if Adyen is cheaper. Unless they have no choice.

Interesting !

link

 

 

It makes me a little nervous when someone in business, tells me  "In a move to cut costs for sellers". Generally that phrase is just propaganda, they are doing it for reasons other than for the seller!  ...You mean there is nothing in it for eBay! LOL.  I got the same release from eBay in a email....

Edited February 1, 2018 by RLC35

[Chingford]

1 hour ago, RLC35 said:

It makes me a little nervous when someone in business, tells me  "In a move to cut costs for sellers". Generally that phrase is just propaganda, they are doing it for reasons other than for the seller!  ...You mean there is nothing in it for eBay! LOL.  I got the same release from eBay in a email....

I wouldn't worry Bob, Adyen take PayPal according to their Website

Edited February 1, 2018 by Chingford

[Rob]

8 minutes ago, Chingford said:

I wouldn't worry Bob, Adyen take PayPal according to their Website

So presumably we can look forward to the new piece in the chain taking an additional cut over and above eBay & Paypoo? I suspect they (eBay) will be taking a greater percentage of the total fees in an attempt to keep ramping up their profits, but the others will want to maintain/increase theirs as well. 

My personal view is that it will need to migrate to a full shop, or else split in two with one for business sellers on a BIN and the other for auctions. The sheer quantity of material has ensured that auction style bidding is now much reduced simply because you can't get through it all. For buyers, unless you have a very specific search description the number of pages can be huge.

[1949threepence]

2 hours ago, RLC35 said:

It makes me a little nervous when someone in business, tells me  "In a move to cut costs for sellers". Generally that phrase is just propaganda, they are doing it for reasons other than for the seller!  ...You mean there is nothing in it for eBay! LOL.  I got the same release from eBay in a email....

I agree Bob. Whatever is being done by e bay, is for the benefit of e bay - if there is any positive spin off for sellers, then all's good. But their primary focus will be on themselves.