eBay and PayPal to end one of the most iconic partnerships!

eBay and PayPal to end one of the most iconic partnerships!

eBay and PayPal to end one of the most iconic partnerships!

The world of eCommerce was thoroughly shaken this morning thanks to a completely unexpected news coming from the eBay. Namely, after more than 15 years of them using PayPal as the only back-end payment processor, they decided to end this exclusive partnership in 2020 when the current contract between the companies ends.

As a substitute, eBay came to an agreement with the Dutch payment processor Adyen who will provide the payment processing for their marketplaces starting 2020. Adyen is already providing their services to some of the world’s largest businesses such as Netflix, Spotify, and Uber.

eBay and PayPal to end one of the most iconic partnerships!

This does not mean that the PayPal will be unavailable for the eBay merchants once the change takes place, as it will still be an option to use, but will definitely become just one more option in the portfolio.

This announcement already caused a significant drop in PayPal stocks value, as they have plummeted down, losing 10% of their value in a single day! 

It is not to be expected that this fall continues, as the company is well established, and the change is not to happen for 2 more years, but in the long run, all scenarios are possible. 

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