Bitcoin May Come to eBay as Platform Drops PayPal as Main Payment Option
For as long as people can remember, there has been a tight relationship between eBay and PayPal. In virtually every case, PayPal is a required option for anyone looking to sell items on the global auction site. That situation will come to change in the near future, as eBay has announced its plan to ditch PayPal as its main payment option. It is a rather surprising turn of events, albeit one that could be quite positive for both companies.
WHAT COMES NEXT FOR EBAY?
It is evident that limiting a global auction site to one main payment method and two or three optional solutions is a bit problematic. Especially in this era of digital payments and competing financial services, there is no reason for eBay to tie its fate to PayPal whatsoever. Even though the platform has made a big impact outside of the online auction industry as well, it’s still something which could hold eBay back in terms of its global appeal.
The number of current payment options on eBay is somewhat limited. Sellers are almost forced to enable PayPal, even if they would prefer to get paid via a wire transfer or money order. This has always been a problem, as users felt they never had a real say in the matter. After many years of giving PayPal the benefit of the doubt, it seems both companies will finally go their separate ways. This news may even be a result of eBay spinning off PayPal as an independent brand a while ago.
With this change looming on the horizon, there is a lot of speculation to contend with. Everyone wants to know if eBay will introduce another mandatory payment option. If so, there is no indication as to which solution that might be, as the company has not announced any candidates. We do know the company is looking to integrate a new payment system built by Adyen, a Dutch company which can provide access to many different payment methods.
According to Engadget, the Adyen integration may occur as soon as Q2 or Q3 of this year. This means that time is ticking for PayPal, even though it will not be removed from eBay altogether. Instead, it will simply cease to be the default option for users of the auction website. Whether or not this will diminish PayPal’s appeal in any way remains to be seen. The company doesn’t have the best of reputations due to its strict regulation of accounts and random security checks which prevent people from accessing funds for up to 180 days.
It is also worth noting that Adyen supports a lot of interesting payment methods including cryptocurrency, although it’s unclear if the latter will ever be a part of the eBay platform. It makes sense for eBay to not disclose too much information until the new payment system is built and tested thoroughly. All sellers on the platform will be introduced to this new payment system between late 2018 and early 2021. Moreover, PayPal payments will remain available until July of 2023.
With both companies seemingly ending their long-term relationship, eBay is acknowledging that now is the time to offer alternative payment options to both buyers and sellers. This new intermediate payment system will make it easier for sellers to track all of their transactions. Moreover, it will reduce the company’s payment processing charges, which will boost eBay’s revenue by up to US$2 billion in the years to come.