Good news for sellers maybe
PayPal shares dropped 10 percent in after-hours trading.
EBay will start working with global payment company Adyen to process its sales.
Customers will have the option of using Adyen on its site or going off-site to pay via PayPal.
https://www.cnbc.com/2018/01/31/ebay-in-split-from-paypal-wi…
never can be fee free, as credit cards charge fees, when you use this to 'fund' your paypal purchase.
Yes but a company facing competition usually will provide incentives eg $10 off unique codes for use on ebay :)
The fee's for PayPal aren't that high. They are pretty much on par with Eftpos Terminal fees.
There business support services are fantastic too, I've had decisions made by eBay that have been overridden when we contact PayPal.
Same goes for using it as a customer as well.
Are you kidding? PayPal fees are reasonable. It’s eBay that need to lift their game and lower their fees. 10% is a joke.
10% is a joke.
if you think 10% is joke, then you should have a look at Amazon's fees.
What are they? I wouldn’t have a clue.
zero fees?
No. There will be a fee which will be worked into the final value fee. Benefit for sellers is not having to deal with charge backs and fraud. Will be a good thing.
How would sellers not have to deal with chargebacks? Can you not use credit cards with Adyen?
Because eBay is processing the payment. Not the seller. Just like selling via Amazon. Funds will however take longer to clear into an account though which sucks from a cash flow perspective. Obviously speculative at the moment and we won't get it for quite a while me thinks.
@Third_Gear: So if a buyer initiates a chargeback, the seller is not going to be liable, eBay will just cough it up? Sounds doubtful, but a great way to scam lots of money from eBay if true >:-)
@Quantumcat: Seller won't be liable as the payment arrangement is between Ebay and the buyer and not the seller. Again this is just an assumption based on how other third party websites run currently. We'll know in a couple years time though!
PayPal shares dropped 10 percent in after-hours trading.
JUST 10%? Should be more.
It bounced back to 7%
WOW…. I'm impressed, really thought it would go lower and not come back!
I like PayPal as a buyer, they look after me because I use them so the seller needs them to get my payment lol.
never heard of adyen.
Etsy use them.
Groupon uses them.
I'm guessing ebay collect the sales payment for seller and pay seller weekly or daily?
Anything that means not having to use PayPal again is a win for me.
here was the email eBay sent yesterday:
Dear thydzik,
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.
Tim Mackinnon
VP & Country Manager, Australia & NZ
This is good news for sellers, as they dont like to deal with paypal.
Paypal makes money from sellers & charge merchant fees from sellers, but they only look after buyers.
What a screw up business model.
Paypal can shut your business overnight, by limiting your account.
Not sure ebay can be trusted either, via another partner or not. They are all for the buyer just as much.
What makes you think Adyen won't do the same when they start building up market share?
Both eBay and PayPal are the worst >.<
In principal, some competition to PayPal can only be a good thing…
So how dos this Effect Buyers ?
It gives them choices.
Thumbs up
Encourages Paypal to lift their game or lower fees, possibly