EBay Drops PayPal for Adyen as Primary Payments Provider
EBay is moving on from Paypal, as the online marketplace announced on Wednesday, Jan. 31, that it is making Adyen its main payment service provider. EBay cited 'lower costs' for merchants in explaining its decision.
More than a decade and a half of partnership between the two brands did not stop Ebay from dropping Paypal as its back-end payments provider, as Gizmodo noted. After their contract with Paypal expires, eBay will be moving to Adyen, a smaller company based in Amsterdam, as its long-term partner instead.
EBay's current agreement with Paypal will remain in place until mid 2020, after which the online market platform will transition to Adyen. The company expects the process to take several years before eBay can fully move over to their new "full payments intermediation."
Paypal will still be a payments option after the change, if only as a secondary choice.
In their announcement on Wednesday, Jan. 31, eBay has listed off several advantages to moving away from Paypal as their main payments processor. Among these reasons, the e-market platform mentioned lower costs and more control for sellers, citing "a simplified pricing structure and more predictable access to their funds."
Buyers also stand to benefit from the change, with eBay focusing on "providing consumers greater choice in payment options at checkout" and delivering an integrated checkout experience with Adyen.
This means that buyers and sellers will no longer have to deal with a separate PayPal account every time they want to do a transaction, as CNBC notes.
Paypal has been eBay's main payments partner since 2003. It may have been one of the longest payment service providers around, but the company has since been faced with stiff competition from new services like Square, Stiripe, and iZettle.
