EBay is to drop PayPal as its main payments processor in a shocking move they claim will benefit sellers and buyers through their new provider, Dutch firm, Adyen. site says buyers and sellers alike will benefit to move from PayPal to Dutch firm Adyen.
People buying items on eBay will be able to pay without leaving its website, and sellers will have lower processing costs, the online giant said in a blog post.
Shares in PayPal were down 7% in pre-market trading in the US on the day due to the shocking news.
EBay said it wanted to complete the move as quickly as possible within the terms of its deal with PayPal.
The e-commerce company said that the operating agreement with PayPal “has not and will not be extended.”
PayPal, which was originally a concept that spun out from eBay in 2015, will continue to be offered as a way to pay on the site until July 2023 but not after that.
Adyen, which was only set up in 2006, is a growing firm that processed over $16Billion worth of transactions in 2014 and currently offers payment processing in more than 150 currencies and over 200 methods of payments, with the likes of Easyjet, Uber and Netflix among its other major customers.
Bloomberg has subsequently reported that the company could list its shares on the stock market this year following its unprecedented success.
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