GLOBAL JUMBLE SALE site eBay has announced that its former bae, PayPal is being ditched for a new payment partner.
The two companies demerged in 2014 but PayPal remained the primary payment partner and kissing cousin to the retail marketplace.
From next year, eBay will be using Dutch company Adyen as its primary payment processing people, but has confirmed that PayPal will still be accepted until at least July 2023, reports Reuters.
The logic, quoth eBay is that Adyen will let you complete your transaction on the product page, whereas Paypal, (which it still absolutely loves by the way, but it's just not working out), involves a lot of clunky going off-site.
PayPal tried to change, it really did, and PayPal One Touch has meant that sometimes you can do the whole thing without too much messing about off-site, but it's still a long way from seamless. And then Adyen came along with its big flashy transaction engine and… oh darling… it's all so confusing. But we had fun, didn't we?
eBay currently represents 13 per cent of transactions processed by Paypal. The decision may act as a wake-up call to the payment business which has, thus far, failed to keep up with rival point-of-sale businesses like Android Pay and Apple Pay but by the same token has become a huge player in the online buying space, embedded in many of the world's top websites.
It partners with some of the big players including Alphabet (Google), Apple, Mastercard, Visa, and JP Morgan chase. It also has a new peer-to-peer app for "the youth" called Venmo.
Shares in PayPal Holdings dropped 12 per cent in after-hours trading, perhaps as investors still struggle to understand exactly what PayPal does in this age of open, challenger banks.
This is in spite of PayPal's CEO Dan Schulman telling analysts that their changing relationship with eBay was "manageable".
Herpes is manageable, pal. Doesn't mean the problem will go away. (Jus' sayin'). µ
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