Paypal shares fall after eBay announces new partnership with Adyen

By Pouyan Broukhim

PayPal’s shares dropped over 10% on Wednesday after eBay announced that it would be partnering up with rival company Adyen.

Adyen is one of the world’s leading payment processors, operating for a number of big name firms including Uber, Netflix, Etsy, Spotify and Easyjet, with a global reach of over 150 currencies and 200 different payment methods.

See also:

eBay has announced that the Dutch company will become its primary payment processor in the aim of improving its customer service and payments experience on its marketplace.

“As a leading global commerce company, eBay believes that payments intermediation is strategically important to improve the buyer and seller experience on its platform and will enable the company to further innovate on behalf of its customers,” eBay said.

The announcement is a significant loss for PayPal, with as much as 13% of its total business coming through eBay.

Although PayPal will remain on eBay’s site as a payment option until 2023, Adyen will offer an on-site service as opposed to PayPal’s external offerings, in addition to reduced costs for sellers and a simpler pricing structure.

“eBay will begin payments intermediation on the Marketplace platform 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,” eBay continues. “In 2021, eBay expects to have transitioned a majority of its Marketplace customers to its new payments experience.”

Share

Featured Articles

PwC's Kathryn Kaminsky – the role of boards on social issues

As Vice Chair Trust Solutions Co-Leader at PwC, Kathryn Kaminsky says boards play an important role in helping businesses take action on social issues

Why your business needs a Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 top AI and ML trends for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

From NYC to Hong Kong, the rise of the private members' club

Leadership & Strategy

Meet the CEO: Jill Stelfox of Panzura, exclusive interview

Leadership & Strategy

The best Michelin-starred restaurants that are meat-free

Sustainability