eBay will shift its payments business from long-time partner PayPal to Adyen, a leading global payments processor based in Amsterdam. This means people buying items on the platform will be able to pay without leaving its website, and sellers will have lower processing costs, the online giant said in a blog post.
PayPal will remain a checkout option for eBay shoppers until at least July 2023. Adyen will gradually take over processing payments, beginning in North America this year and will process a majority of transactions in 2021.
eBay said the shift will result in lower payment processing costs for merchants selling on the platform and greater options for buyers. Adyen accepts payments in 150 currencies and accepts over 200 methods of payments.
eBay said its partnership with Adyen’s technology would enable sellers to manage and track all transactions and customer interactions. It will provide buyers with more choice and an ‘integrated checkout experience’ – allowing them to remain within the site, rather than being directed to a separate PayPal screen to compel a purchase.
Adyen, based in the Netherlands, is a much smaller online payment company than PayPal but it has some major customers including Uber and Netflix. Their integrated approach will make for a much better customer experience.
Users will still be able to use PayPal as a secondary payment choice through the transition process. However, PayPal could cease to be an option from July 2023, when its agreement with eBay runs out. PayPal could see a big blow to its total payments volume. Shoppers purchased $24.4 billion in goods on eBay in 2017 and site is 13% of transactions through PayPal.