eBay’s planned removal of PayPal as an option for paying sellers has come into effect. While eBay buyers can still pay with PayPal, sellers will be paid straight into their bank accounts.
PayPal first split from eBay in 2015, but has seen continued use on the platform
Previously eBay charged a flat 10% of the sale price, including postage, with PayPal taking a cut of 2.9% of the final amount, including postage, plus a small sum for each transaction.
As of 1 June, eBay is charging a final value fee of 12.8%, including delivery, with PayPal cut out of the equation.
PayPal was acquired by eBay in its early days in 2002, but the two parted company in 2015. The agreed split allowed PayPal and eBay to pursue partnerships with each other’s competitors, but barred them from becoming direct competitors in their core businesses.
Although there have been some grumbles from sellers about giving eBay direct debit access to their personal bank accounts, the company says the new system is simpler, convenient, and gives buyers more payment options.
Buyers will automatically have access to multiple payment options, including credit and debit cards, Apple Pay, Google Pay, PayPal, and PayPal Credit.
However, payments for sellers will now take two working days, while PayPal was usually same-day.
It has been a gradual introduction. The feature has been rolled out since about 2018, starting with business sellers.
An estimated four million sellers are already using it. The deadlines for all users are phased so while many sellers are required to move to the new system from 1 June, others will receive a message from eBay in the coming weeks and months.
Related: PayPal deepens Google Cloud relationship with new infrastructure deal
FAQs
eBay's planned removal of PayPal as an option for paying sellers has come into effect. While eBay buyers can still pay with PayPal, sellers will be paid straight into their bank accounts.
Is eBay parting ways with PayPal? ›
Why eBay abandoned PayPal. eBay says it's moving from PayPal to Adyen in order to “improve its customer experience” by intermediating payments on its marketplace. “In doing so, eBay will manage the payments flow, simplifying the end-to-end experience for buyers and sellers,” the company said in a statement.
Did eBay cut ties with PayPal? ›
Buyers can still pay using PayPal, but eBay no longer uses PayPal to pay sellers. If you made purchases using PayPal and you are being refunded, the refund payment will return to the original payment source just as before. eBay and PayPal split in 2015 and negotiated a five year deal to separate the payment processing.
Which Fintech company is owned by eBay? ›
Established in 1998 as Confinity, PayPal went public through an IPO in 2002. It became a wholly owned subsidiary of eBay later that year, valued at $1.5 billion.
Can eBay still payout to PayPal? ›
If you sell on eBay, you won't be able to receive payouts via PayPal anymore. Instead, payments will go directly to a bank account.
Can you pay with PayPal on eBay in 2024? ›
In addition to paying with credit cards, debit cards, PayPal, Apple Pay and Google Pay, buyers can also pay with cheques, postal orders, and payment on collection in certain categories.
Has eBay changed its payment method? ›
When it comes to buyers, not much will change except they'll now have more ways to pay. Currently, you can pay using PayPal, cash or card. But when a seller is on eBay's new payment system, it means buyers will be able to pay by Apple Pay or Google Pay too, as well as by PayPal, cash or card.
Why did eBay spin off PayPal? ›
"eBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets," Donahoe continued. "As independent companies, eBay and PayPal will enjoy added flexibility to pursue new market and partnership opportunities.
Why did PayPal and eBay demerge? ›
PayPal was acquired by eBay in its early days in 2002, but the two parted company in 2015. The agreed split allowed PayPal and eBay to pursue partnerships with each other's competitors, but barred them from becoming direct competitors in their core businesses.
Does anyone use PayPal anymore? ›
As of 2023, PayPal has 435 million active accounts and is the fifth most accepted payment option after all the major credit cards. Offer customers multiple payment processing methods that include Venmo, PayPal Credit, debit card, and credit card—both online and in-person.
The company was founded by French-born Pierre Omidyar in 1995. He is now the largest insider shareholder with more than 45 million shares held. 90% of the company shares, however, are held by mutual funds and other institutional shareholders.
Who is the largest shareholder of eBay? ›
Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, Ameriprise Financial Inc, Geode Capital Management, Llc, VFINX - Vanguard 500 Index Fund Investor Shares, VIMSX - Vanguard Mid-Cap Index Fund Investor Shares, Comprehensive ...
What country owns eBay? ›
eBay Inc. (/ˈiːbeɪ/ EE-bay, often stylized as ebay) is an American multinational e-commerce company based in San Jose, California, that brokers customer to customer and retail sales through online marketplaces in 190 markets worldwide.
Can eBay legally hold my money? ›
To help ensure eBay remains a safe place to buy and sell, and to meet our legal and compliance obligations - opens in new window or tab, we sometimes place a hold on funds, for example, if there's an open case or dispute on a transaction, if your buyer reports a problem with the order, if your account is restricted or ...
Can eBay take money from my bank account? ›
When you set up managed payments so you can sell on Ebay, you set up a direct debit to Ebay which allows them to access your bank account for amounts you owe to them. This may be used to take payments for fees, refunds, postage labels purchased via Ebay etc.
Who is eBay's payment processor? ›
What Is eBay's Payment Processor? In essence, eBay Managed Payments is eBay's in-house payment processing system for buyers and sellers. It is designed to optimize the selling experience on eBay by allowing us to sell and get paid on the same platform.
Does eBay have subsidiaries? ›
eBay has more than 160 subsidiaries worldwide. Here's the full list of eBay subsidiaries.
Is PayPal the first Fintech company? ›
In fact, PayPal is one of the largest fintech companies in the world, and it was also one of the first companies to operate in the space. The company is a global giant that has changed how many of us transact online.
Does eBay own Skype? ›
In September 2009, after an exhaustive process, eBay sold a majority stake in Skype to an investor group led by private equity firm Silver Lake. Other investors included the Canadian Pension Plan Investment Board. The deal valued Skype at $2.75 billion, more than the company had paid for Skype in 2005.
