information eBay will begin intermediating payments on its Marketplace platform

[Haroon Basha]

Dear hellofreeads,

eBay is happy to announce plans to further improve the customer experience by intermediating payments on our Marketplace platform. In doing so, eBay will manage the payments flow, simplifying the end-to-end experience for both buyers and sellers. We have signed an agreement with Adyen, a leading global payments processor, to become our primary payments processing partner. PayPal, a long-time eBay partner, will be a payments option at checkout for eBay buyers.

You do not need to take any action at this time. The transition to full payments intermediation will be a multi-year journey.

Over the past three years, eBay has transformed its business to drive the best choice, most relevance and most powerful selling platform. Building out our payments capabilities is the next step in that strategy.

Payments intermediation will bring significant benefits for eBay sellers. You can expect a simplified pricing structure, more predictable access to funds, and most sellers can expect their costs of payments processing to be reduced. We’re also working on ways to provide sellers a central place to track and manage their business, which can soon include payments information.

By offering buyers more choice in how they pay and expanding payment options into more geographies, eBay believes sellers will be able to reach more buyers and improve conversion.

The transition to full payments intermediation will be a multi-year journey. eBay 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, we expect to have transitioned a majority of Marketplace customers to the new payments experience.

Again, you do not need to take any action at this time. As eBay gets closer to the initial phase of its intermediation efforts, we will share more details about this process and next steps for sellers. In the meantime, please read the eBay Inc announcement for further information. For any immediate questions or to share feedback, please email [email protected].

We’re looking forward to what’s next, and to getting there with you.

As always, thank you for selling on eBay.

Bob Kupbens
Laura Chambers
VP, B2C Selling
VP, C2C Selling

 

[Michael M]

I ran across a story about this today... Seems they will be moving their payment system over to Adyen, which is also the payment processor that @Undeveloped uses.

Can't hurt those of us that use Undeveloped landers as Adyen becomes more widely recognized. (since they proudly state "Safe payments by Adyen"

You would think that this has PayPal looking towards the future and you'd imagine they will be trying to roll out new features and increasing their accepted currencies to stay relevant... (though I am sure this was already on their radar)

 

[Weber]

Why could they not provide the above mentioned improved services using Paypal? They owned it.

 

[creataweb]

Why could they not provide the above mentioned improved services using Paypal? They owned it.

Cuz I think they (PayPal aka Poo-Pal) preferred taking cash and playing ignorant along with eBay over the years. Just my opinion

 

[Haroon Basha]

The new development will in fact beneficial to the Sellers. Ebay cuts 10% and Paypal cuts 5.2%, that is really horrible. Adyen should charge lesser fees than PayPal otherwise there is no benefit to us all. At the same time, PayPal will reduce the charges so that its clients stay with it.

 

[hs.Gabriel]

Cuz I think they (PayPal aka Poo-Pal) preferred taking cash and playing ignorant along with eBay over the years. Just my opinion

spot on.

 

[DAN.COM]

I ran across a story about this today... Seems they will be moving their payment system over to Adyen, which is also the payment processor that @Undeveloped uses.

Can't hurt those of us that use Undeveloped landers as Adyen becomes more widely recognized. (since they proudly state "Safe payments by Adyen"

You would think that this has PayPal looking towards the future and you'd imagine they will be trying to roll out new features and increasing their accepted currencies to stay relevant... (though I am sure this was already on their radar)

Ebay has been in trouble for years now with vertical marketplaces like Etsy.com (not to be mistaken by Efty ) taking bites in their market share. So they had to start changing their approach of only pushing their own payment source.

Adyen supports Paypal but also introduces every single local payment provider that exists. That’s we at Undeveloped already in 2014 we went for Adyen over other services. They’ve in essence centralized the payment collection space and implemented good marketplace features for payouts.

It’s good to see them grow so fast, they’re also based in Amsterdam like us.

 

[mjnels]

Ebay has been in trouble for years now with vertical marketplaces like Etsy.com (not to be mistaken by Efty ) taking bites in their market share. So they had to start changing their approach of only pushing their own payment source..

people have been saying this kind of stuff for years, every year, multiple times a year.

ebay is not in trouble. its not why they are pushing their own payment service. they have had their own payment system since the late 90's. its not a new idea..see "BillPoint":

https://en.wikipedia.org/wiki/Billpoint

 

[DAN.COM]

people have been saying this kind of stuff for years, every year, multiple times a year.

ebay is not in trouble. its not why they are pushing their own payment service. they have had their own payment system since the late 90's. its not a new idea..see "BillPoint":

https://en.wikipedia.org/wiki/Billpoint

Being in trouble for public companies tends to be different than for private companies. It’s all about the growth rate to keep investors happy. I think Ebay’s stake in Paypal might by now even be worth more than Ebay itself.

Nobody is saying Ebay isn’t significant anymore but they do have more competition than ever and need to get more pro-active to keep the business growing.

But you have a good point as well. They still generate over $2B in net rev so that’s significant. Not sure how much of that is profit though and what the revenue source is.