CALIFORNIA – Multinational shopping website eBay Inc. has revealed that it will be ditching PayPal as its primary payment processor.
The company says it will be intermediating payments on the Marketplace platform, a move that will improve the experience for both sellers and buyers, the online giant said in a blog post.
eBay has signed an agreement with Dutch firm Adyen to process payments, but buyers will still be able to use PayPal on the site until at least 2023.
PayPal will remain a payment option on eBay for users who prefer it, and the financial company’s Operating Agreement with eBay is valid until summer 2020. During these years, eBay will make the transition to full payment intermediation.
According to eBay, those who sell on the platform will have lower costs as a result of the transition, as well as getting more predictable access to the money they earn. Sellers will also soon have a centralized business management experience, getting access to payment info alongside other data about their eBay business.
Though the transition will start for users in North America later this year, the majority of customers will get the new experience in coming years leading up to 2021.
