EBay announced on January 31 that it will stop working with PayPal as the primary payment service in 2020. The online sales site has signed a long-term contract with Adyen, a company based in Amsterdam.
Their collaboration will focus primarily on the provision of payment services such as credit cards, this company supports more than 200 payment methods around the world. This is a very good deal for Adyen, its net income reached $ 178 million in 2016, against $ 11 billion for PayPal.
EBay turnover would increase by 2 billion
For eBay, this separation helps to better control the payment experience, much like the other big players in e-commerce like Amazon and Alibaba. This operation would also bring him an estimated turnover of 2 billion dollars. Indeed, she can now charge sellers instead of Paypal. Nonetheless, company officials said their customers can expect lower costs after the change is effective.
What becomes PayPal?
PayPal will remain a payment option for eBay buyers, but will stop processing card payments. This split has been planned since 2014, but both partners have signed a five-year operating agreement until mid-2020. Although PayPal has diversified its sources of revenue, the stock plunged 12% after the announcement made by eBay.
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