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eBay Set to Drop PayPal As Main Payment Processor

eBay Set To Drop Paypal

Despite alternative websites appearing in recent years, eBay is, pretty much, still the go-to website for buying or selling your unwanted stuff. For years now, the main payment source eBay accepted was via PayPal. A new deal, however, will see the relationship as the primary payment processor cease.

In a report via the BBC, eBay has struck a deal with the Dutch firm Adyen which will see them take over the role as the main payment source. It is reported that eBay is keen to make the transition to this new provider as quickly as possible.

Why is eBay making the change?

As you would expect, it all comes down to money. It is, however, a move which may end up benefiting consumers though. The deal is thought to be better for everyone overall with one major perk being that Adyen will have lower processing costs. Meaning you get to keep more of the money you make on the website.

The announcement has seen the share price of PayPal drop by 7%.

Adyen Set To Take Over

Adyen has certainly come a long way in recent years as a very viable alternative for payment processing. The company already has a number of exceptionally high-profile clients including Netflix, Uber and EasyJet.

The company reported processed over $50bn worth of transactions in 2015. With the deal with eBay set to start, this figure is almost guaranteed to skyrocket. With Adyen set to hit the stock market later this year, an investment in the IPO might not

The future of PayPal

The current deal with eBay is set to run until at least 2020. It is, however, thought that eBay will likely not choose to extend the deal beyond this point, or at least, not under the current terms.

Adyen, on the other hand, would appear to be a company on the move and well worth watching for the future.

Ultimately, for us consumers, it is reported to mean lower prices and who can complain about that?

What do you think? Surprised by the change? How do you think this will impact PayPal? – let us know in the comments!

 

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