eBay Is Getting Rid of PayPal

An email from eBay today:

eBay is happy to announce plans to further improve the customer experience by intermediating payments on our Marketplace platform. In doing so, eBay will manage the payments flow, simplifying the end-to-end experience for both buyers and sellers. We have signed an agreement with Adyen, a leading global payments processor, to become our primary payments processing partner. PayPal, a long-time eBay partner, will be a payments option at checkout for eBay buyers.

To be honest, PayPal is a necessary evil. Their policies are confusing and sometimes hard to work with. But I had never heard of Ayden before. I don’t know how easy it will be to trust that company.

eBay says:

Payments intermediation will bring significant benefits for eBay sellers. You can expect a simplified pricing structure, more predictable access to funds, and most sellers can expect their costs of payments processing to be reduced.

We’ll see about that.

eBay will begin intermediation on a small scale in North America starting in the second half of 2018, expanding in 2019 under the terms of the Operating Agreement with PayPal. In 2021, we expect to have transitioned a majority of Marketplace customers to the new payments experience.

Forewarned is forearmed.

30 thoughts on “eBay Is Getting Rid of PayPal

  1. Why would you call PayPal a necessary ‘evil’. PayPal is a great system allowing anyone to make and receive on-line payments, very securely. What’s so evil about that – even if sometimes slightly expensive? Life would be much harder without PayPal – or equivalent.

    Adyen seem to be just another merchant payment processor and not really the same as PayPal. This is probably why eBay sold off PayPal a while ago.

    • Here’s just the most recent example. For an obscure reason, one of my clients had to pay me via PayPal. They would not give me all the money; they said they were holding about 2/3 of it for 21 days, because “there was a sudden increase in my sales.” I had to reverse the payment; they have no right to hold money that is mine.

      There are lots of horror stories about PayPal blocking accounts, not being receptive to complaints, and so on.

  2. Why would you call PayPal a necessary ‘evil’. PayPal is a great system allowing anyone to make and receive on-line payments, very securely. What’s so evil about that – even if sometimes slightly expensive? Life would be much harder without PayPal – or equivalent.

    Adyen seem to be just another merchant payment processor and not really the same as PayPal. This is probably why eBay sold off PayPal a while ago.

    • Here’s just the most recent example. For an obscure reason, one of my clients had to pay me via PayPal. They would not give me all the money; they said they were holding about 2/3 of it for 21 days, because “there was a sudden increase in my sales.” I had to reverse the payment; they have no right to hold money that is mine.

      There are lots of horror stories about PayPal blocking accounts, not being receptive to complaints, and so on.

  3. Ironic, as it seems like only yesterday when eBay, having become so concerned over what they’d been missing in additional potential online sales revenue, bought PayPal.

  4. Ironic, as it seems like only yesterday when eBay, having become so concerned over what they’d been missing in additional potential online sales revenue, bought PayPal.

  5. Interesting. I recently complained to eBay that, as it owned PayPal (or the other way ’round), I was effectively being charged twice for the services I received. I was told this wasn’t true; there was no connection.

    Regardless…

    The statement //does not// say eBay is “getting rid of PayPal”. Rather, it will be deprecating PayPal.

    PayPal is a known quantity. I use it for business with other companies, and have used it to send/receive money to friends. Also, PayPal reimbursed the cost of returning merchandise to B&H Photo. (You can do this ten times a year, I believe.) I feel PayPal is pretty much on my side. Who the hell is Adyen?

    It’s bad enough that PayPal has my name, address, phone number — and access to my checking account. Why would I want some other company to have that information, when it’s of no use to //me//? I might be crazy, but I’m not stupid.

  6. Interesting. I recently complained to eBay that, as it owned PayPal (or the other way ’round), I was effectively being charged twice for the services I received. I was told this wasn’t true; there was no connection.

    Regardless…

    The statement //does not// say eBay is “getting rid of PayPal”. Rather, it will be deprecating PayPal.

    PayPal is a known quantity. I use it for business with other companies, and have used it to send/receive money to friends. Also, PayPal reimbursed the cost of returning merchandise to B&H Photo. (You can do this ten times a year, I believe.) I feel PayPal is pretty much on my side. Who the hell is Adyen?

    It’s bad enough that PayPal has my name, address, phone number — and access to my checking account. Why would I want some other company to have that information, when it’s of no use to //me//? I might be crazy, but I’m not stupid.

  7. “Getting rid of Paypal” seems like a big leap, and they clarify that from the buyer perspective, Paypal will continue to be an option. But I guess you got my click, so mission accomplished right?

    • It’s clear that eBay’s eventual goal is to get rid of PayPal. They’ll retain it for a while – and it will take a few years to phase in the new company in all the countries where eBay is active – but this is the first step on removing them permanently.

  8. “Getting rid of Paypal” seems like a big leap, and they clarify that from the buyer perspective, Paypal will continue to be an option. But I guess you got my click, so mission accomplished right?

    • It’s clear that eBay’s eventual goal is to get rid of PayPal. They’ll retain it for a while – and it will take a few years to phase in the new company in all the countries where eBay is active – but this is the first step on removing them permanently.

  9. In the end it will be the consumer who will have the last say. If PayPal is not completely erased, I believe consumers will continue to use PayPal, its what they are use to using. But how many more of these merchant payment processor are going to pop up into the future.

  10. In the end it will be the consumer who will have the last say. If PayPal is not completely erased, I believe consumers will continue to use PayPal, its what they are use to using. But how many more of these merchant payment processor are going to pop up into the future.

  11. PayPal will no longer be a payment option on EBay come 2020. It’s being phased out completely within the next two years.

  12. PayPal will no longer be a payment option on EBay come 2020. It’s being phased out completely within the next two years.

  13. Adyen is a start up bank/ a paypal want a be. It’s a Dutch company. Foreign owned. Where will this Dutch bank keep our money? More American jobs sent over seas with our money. I bet they will not invest their money here but sure will be happy to take it.
    Not happy about this at all.

  14. Adyen is a start up bank/ a paypal want a be. It’s a Dutch company. Foreign owned. Where will this Dutch bank keep our money? More American jobs sent over seas with our money. I bet they will not invest their money here but sure will be happy to take it.
    Not happy about this at all.

  15. I think it’s possible that they may get rid of them in the future they got rid of billpoint. I’m not a fan of PayPal because I won a case in my favor on eBay and PayPal came in and ruled in the buyers favor.

  16. I think it’s possible that they may get rid of them in the future they got rid of billpoint. I’m not a fan of PayPal because I won a case in my favor on eBay and PayPal came in and ruled in the buyers favor.

  17. I am not happy about this either. My main reason is the same as Aaron. I really don’t want to give my banking info off to some Foreign Company. I think we should all just bite the bullet and totally boycott eBay during the month of January, 2019.
    Jack M.

  18. I am not happy about this either. My main reason is the same as Aaron. I really don’t want to give my banking info off to some Foreign Company. I think we should all just bite the bullet and totally boycott eBay during the month of January, 2019.
    Jack M.

  19. Just a heads up… I put something in my cart and it sent me to ebay payments…I found the same item that accepted paypal from another vender and deleted the first one. That first seller lost my purchase.
    ebay needs to prove they will be better before I will list MY auctions with their payment methods. I accept BOTH cards and paypal on my site and 2 to one people prefer paypal.
    I am not saying paypal is the greatest… just that ebay is run by morons that don’t “get” their customers and communicate awful.

  20. Just a heads up… I put something in my cart and it sent me to ebay payments…I found the same item that accepted paypal from another vender and deleted the first one. That first seller lost my purchase.
    ebay needs to prove they will be better before I will list MY auctions with their payment methods. I accept BOTH cards and paypal on my site and 2 to one people prefer paypal.
    I am not saying paypal is the greatest… just that ebay is run by morons that don’t “get” their customers and communicate awful.

  21. I will only use PayPal if eBay can’t atleast keep PayPal as a option I will make my own website and use PayPal as the only option. I also don’t use amazon cuase they don’t use PayPal.

  22. I will only use PayPal if eBay can’t atleast keep PayPal as a option I will make my own website and use PayPal as the only option. I also don’t use amazon cuase they don’t use PayPal.

  23. I guess the problem I have is that Paypal is NOT an option automatically, so many merchants will choose not to accept it. (the fools!) It will cost them. The system before ALWAYS had a Paypal option, so now many sales won’t happen due to people backing out on the payments page. ebay simply does not “get it” when it comes to change. More appropriately, they should have added in an additional payment as an option, then LATER, after everyone got used to it, MAYBE making Paypal optional. Paypal has been a standard for too long to make such an abrupt change without thinking about their customers.
    Paypal also needs to think about its pricing stucture, as this could cost them dearly!!!

  24. I guess the problem I have is that Paypal is NOT an option automatically, so many merchants will choose not to accept it. (the fools!) It will cost them. The system before ALWAYS had a Paypal option, so now many sales won’t happen due to people backing out on the payments page. ebay simply does not “get it” when it comes to change. More appropriately, they should have added in an additional payment as an option, then LATER, after everyone got used to it, MAYBE making Paypal optional. Paypal has been a standard for too long to make such an abrupt change without thinking about their customers.
    Paypal also needs to think about its pricing stucture, as this could cost them dearly!!!

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