After 15 years, online giant eBay and payment service PayPal decided to go separate ways. We'd like to explain here what eBay and Paypal customers need to know now.
eBay customers have now to make their payment via Adyen. So was stated in a surprising press release published by eBay on its official site. The change will start in mid-2020.
Customers of the online giant will still have the opportunity to pay via an external site via PayPal until 2021.
Most probably needs eBay the time to switch customers to the new payment system. After that should be the payment service, Adyen used primarily.
So why it comes to separation of eBay and PayPal?
eBay turns his entire payment concept upside down. Until now PayPal took care of all transactions. But now eBay takes over all payments. An intermediary – in this case, Adyen – supplies the technology. Here eBay takes over the Amazon concept. Again, the company executes all payments themselves.
Given the increasing competition from Amazon and Alibaba, eBay offers its dealers better conditions. With Adyen, this already starts with the payments. While PayPal currently allows payments by credit card, voucher or direct debit, Adyen supports much more payment methods, such as instant banking, etc.
With Adyen, there will be no need for an additional account as before with PayPal. The provider only provides the technology and partnerships. At the click of a button, consumers can choose the payment option.
Good to know: Adyen also allows payments via PayPal.
What do customers can expect?
- First, there is no significant change. Not for eBay or PayPal customers.
- The conversion to Adyen should make it easier for many eBay users to pay. An additional account like Paypal will not be necessary anymore.
- PayPal payments are still possible via eBay and will remain so until 2021. Traders will be gradually converted from 2019 to the new system.
- PayPal payments are still possible via eBay and will remain so until 2021. Traders want to be transferred from 2019 to the new system.
- PayPal accounts will continue to exist. In some countries, for example in Germany, it could take even longer before the change takes effect. Probably even until 2023.
What are the disadvantages?
At first glance, customers will save money after switching to Adyen. That should please not only eBay merchants, but also a private seller. So for now, we don't see any Disadvantages.