The eBay and PayPal divorce is two and a bit years hence and the deal made with PayPal made stipulations that the marketplace had to use PayPal to a great degree. But with the passage of time it seems possible that eBay payments from buyers to sellers could be processed by the marketplace.
Hints suggest that eBay might again make forays into payments in its own right. Indeed, it could go so far as to the extent of taking payments on behalf of sellers like Amazon does.
A conversation during the Credit Suisse 21st Annual Technology, Media & Telecom Conference Call between analyst Paul Bieber and eBay’s Chief Financial Officer Scott Schenkel suggests that eBay might be considering taking back some of its payment share.
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Schenkel said in the discussion: “The operating agreement provided to capability after three years to start to implement what we call a merchant of record, which is eBay would start to be the seller and in doing so would aggregate that volume and be able to get lower PayPal or other payment operator rates, right. It’s simple as that. So there’s a level of investment that would be required to do that. There is a level of cost — so just the product and technology investment would be not insignificant. Remember, we would also then have to start to do risk. We would have to do trust, we would have to have some degree of additional customer service, all of which PayPal does for us today. Not all of which, but most of it. So there’s the dynamic of changing the ecosystem from a product standpoint, making sure it is a better customer experience and making sure that we are ready to handle the merchant of record responsibilities to then get a lower take rate.”
So, obviously eBay realises that there is an option and a opportunity to start processing payments on the marketplace, should it decide to do so, when the agreement allows. eBay Payments rather than PayPal could be on the way.
Is that a good thing? Perhaps if the fees were cheaper than PayPal. What do you think?