Popular Online shop, eBay has announced that It is set to drop Paypal as its main payment processing partner in a move that they described as ‘ The best to Benefit Sellers and Buyers’
It can be recalled that Ebay signed a contract with Paypal in 2015 which is meant to run up to 2020. So far, Paypal has been the main payment processor not until recently, when eBay signed an agreement with a Dutch Firm Adyen.
|eBay drops PayPal as its payment partner|
Ebay made this contract known while still affirming that buyers and sellers will still be able to make payments on eBay using PayPal. This is a really bad news for Paypal as their Shares in the Pre-market Trading in the United States dropped by 7%.
eBay also made the press know that their contract with PayPal has not been extended and will not be extended.
Adyen, the new preferred choice of payment by Ebay also handles payments for some other big companies like Uber, Easyjet and Netflix.
Adyen is growing very fast. In 2003, Adyen process 14bn dollars worth of transactions for its clients but that figure has multiplied as the recent report released in 2005 shows that the figure has really increased by over 200% to a whopping 50bn Dollars worth of Transactions.
There are reports from Bloomberg that Adyen could list its stocks in the market this year. Would that happen?
Let's watch out.
Stay tuned for more.