Having launched eBay Payments in the US four months ago, eBay say that their confidence and their customers confidence is growing every week. In their Q4 Investor Earnings Call, eBay gave an eBay Payments Progress report saying that since they launched in late Q3 they have enabled over $140 million of GMV with over 3,500 sellers active in the program.
In the holiday period, eBay ramped back on seller recruitment adding around an additional 1,000 sellers, so eBay Payments progress slowed. This is a natural move as many sellers would be naturally reluctant to change anything that could interrupt their operations over Christmas, but despite the slowed recruitment the eBay Payments still added around 40% more sellers in the fourth quarter.
Looking at revenues, $140 million is peanuts in eBay terms when compared with their Q4 marketplace GMV of $23.2 billion. It’s not even 1% of their revenue and so in many ways almost irrelevant, but what makes it critically important, both for eBay and sellers, is their intention to to begin a full roll out in 2020 with a significant percentage of eBay GMV expected to be intermediated by eBay Payments around Q2 2020.
While it’s not possible to measure PayPal vs PayPal via eBay Payments as PayPal is not yet supported, eBay say that historical credit card purchasers on eBay and ApplePay users on eBay and both are showing higher conversion in the new payment experience.
eBay are aiming for eBay Payments progress will build to a $2 billion revenue opportunity at scale. An interesting tidbit is that out of the $140 million GMV intermediated by eBay Payments that they calculate, on average vs PayPal published rates, savings to sellers of $1.2 million in payment related costs.
eBay Payments Progress towards a second territory
Perhaps the most interesting news is that eBay are readying a launch in a second market with an announcement expected during the next quarter.
With the nascent eBay Payments not yet supporting cross border payments, this is a big jump – rather than just ramping up the roll up in the US they are going to be forced to accept multiple currencies and hopefully this signals cross border payments will be rolled out – a big sticking points for many sellers considering joining early.
So which country will be next? A natural partner would be eBay Canada as many buyers already shop on eBay.com and sellers in the two countries routinely sell to each other.
Germany is a possibility as Germans are not quite the fans of PayPal that Brits are. Germans love paying by direct debit and paying via card could be interesting – Germany would be an even more attractive market as eBay Payments progress outside the US if Adyen and eBay enable direct bank transfers.
If you were eBay, which country would you target next?