The breakup between eBay and PayPal is old news. It was announced last year that Adyen will be the replacement method, but it seems that eBay decided to go a step further, and not only provide Adyen as a payment processing method for their sellers, but instead, they will manage the payment process from end to end.
What does it mean?
The change that will come with this new approach is not a small one. First of all, there will be no way to operate in the UK via this marketplace without having a bank account connected to the seller’s account. It was possible previously thanks to the presence of PayPal which was managing everything within their system.
Also, it means that the customers will have multiple options when it comes to payments and won’t need a PayPal account in order to make a purchase. All of the most common payment methods will become available, including debit and credit cards, Google Pay, and Apple Pay for the iPhone and Mac users.
Finally, it will mean that everything concerning reporting and disputes will be centralised and available under eBay. It should help both customers and sellers and provide them with a better user experience than it was the case previously.
What are the implications?
The implications of the new system will be quite far-reaching. This new method gives more control and better insight to eBay, so it is to be expected that the legitimate sellers will actually see benefits from the new approach. It is said that the new system will also mean lower transaction fees in the majority of cases which should increase profitability to all the sellers.
Customers should also perceive this new system as something good, as it should allow them to buy more comfortably.
Finally, the company should have more control over the entire payment process and that should reflect beneficially to them as well.
It looks like a win-win situation, and we need to wait and see how everything unravels, but one thing is certain – eBay is finally doing something to improve their overall service.
Submitted by Studioworx Marketing Team on 05/07/2020