This is actualy sad to announce, but Ebay and Paypal has just cancelled their business together. EBay Inc. will shift its payments business from long-time partner PayPal Holdings Inc. to Adyen BV, a global payments company based in the Netherlands.
PayPal will remain a checkout option for EBay shoppers at least until July 2023. Adyen will gradually take over processing EBay payments, beginning in North America this year and will process a majority of transactions in 2021.
PayPal is currently EBay’s payments processor, meaning merchants selling on the marketplace have to have PayPal accounts to accept funds. EBay said the shift will result in lower payment processing costs for merchants selling on the platform and greater options for buyers.
"EBay’s decision to reduce PayPal’s prominence represents a major setback for PayPal."
The announcement surprised some investors, who expected the companies to announce an extension to their operating agreement. PayPal has played an integral role in processing payments on EBay for 15 years and offers credit products that help EBay shoppers buy more goods.