eBay has announced that Dutch payments firm Adyen will become the marketplace’s primary payments partner and that eBay itself will be “intermediating” payments.
Here’s what they say in the announcement from yesterday evening:
“eBay intends to further improve its customer experience by intermediating payments on its Marketplace platform. In doing so, eBay will manage the payments flow, simplifying the end-to-end experience for buyers and sellers. eBay has signed an agreement with Adyen, a leading global payments processor, to become its primary payments processing partner. PayPal, a long-time eBay partner, will be a payments option at checkout for eBay buyers. The transition to full payments intermediation will be a multi-year journey, and eBay will move as quickly as possible to complete this process within the parameters of the Operating Agreement with PayPal, which remains in place through mid-2020.
As a leading global commerce company, eBay believes that payments intermediation is strategically important to improve the buyer and seller experience on its platform and will enable the company to further innovate on behalf of its customers. In a rapidly changing and competitive ecommerce landscape, shoppers expect to be able to both shop and checkout on the site on which they transact. As eBay intermediates payments, shoppers will be able to complete their purchases within eBay. As a global marketplace that operates in over 190 markets, eBay also must continue to provide localized payment options for buyers and sellers that are tailored to their unique needs.”
What this seems to mean, on the most basic level, is that the entire payments and checkout flow will be retained fully within the eBay site. You likely won’t need more than just an eBay login to both buy and pay. It seems likely that eBay will administer payments and disbursements for sellers too with the help Adyen. There is no doubt that this is the most significant and bold move from eBay since PayPal and eBay split from each other in the summer of 2017.
The markets have responded to the news and PayPal shares have taken a hit but eBay has received a boost.
What do sellers need to do?
The answer, at the moment, is absolutely nothing. But in due course this is likely to significantly change how they process and record payments and also how they administer their business. After all, PayPal isn’t going to be the primary payments system for eBay, so there will be some transition to the new systems to make. It’s going to take time, early steps will be made in 2018 and 2019 but the full roll out won’t be complete until 2021.
We’ll doubtless return to this story and keep you posted.