eBay split with PayPal – what it means for you
It has been just over a week since eBay announced that they will be splitting from Paypal and switching to Adyen as their main payment provider.
In this article we will highlight the key questions we have been asked by the online seller community.
- Who is Adyen
- Why are eBay using Adyen
- Will PayPal be an option
- What does the seller need to do
Who is Adyen
Adyen is a payment processor used by companies such as Uber, Etsy, Netflix and many others.
It offers a variety of payment processor options including Adyen MarketPay designed for marketplaces (like eBay).
Why are eBay using Adyen
The short answer is that eBay will be using Adyen to intermediate payments directly between the buyer and the seller, much in the same way Amazon does.
The reason they are using Adyen to do this rather creating their own payment solution has many long winded stories tied to it but the most prevalent one is the clause created when eBay and PayPal became separate companies. The clause we are mentioning means eBay can not create a new payment processing platform like PayPal, which Adyen, being a third party platform bypasses.
Will PayPal be an option
Yes until at least 2023, eBay will keep PayPal as a payment option. It is also important to note that Adyen also accepts PayPal as a payment method on their platform, though there has been no confirmation if this will be part of the offering for eBay yet.
What does the Seller need to do
At the moment eBay hasn’t announced if there are any key actions the seller has to take but the integration of Adyen will begin in the second half of 2018 starting in the US. It will expand internationally throughout 2019 and by 2021 eBay expects to have migrated the majority of their customers to their new payment processor.