PayPal’s eBay marketplaces volume decline spotlights the acceleration of decoupling progress

No primary category set

PayPal second-quarter results shone a spotlight on the accelerated separation progress as its partnership with eBay is due to end by 2021.

The fourth anniversary of PayPal and eBay break up saw the marketplace sending an email to invite sellers to their own managed payments service that set to become mandatory for all traders by 2021. The move also saw eBay setting their own rules on payment-processing fees which will see the marketplace charging sellers a transactional fee per listing from the 1st of October 2019.

eBay are highlighted as “PayPal’s key businesses driver” and PayPal experienced declining volume growth from eBay in Q2 when compared to previous years. eBay marketplaces volume declined 4% on an FX-neutral on the year-on-year (YoY) basis. That’s down from 6% of the marketplaces’ volume growth in Q2 2018. It represented 9% of TPV for the quarter versus 12% a year ago.

The figures highlight the decoupling moving “faster than expected” according to MoffettNathanson analyst Lisa Ellis.

This is interesting, not because eBay represent the lions’ share of PayPal’s business, but because PayPal was built off the back of eBay. As merchants are moved to eBay Payments, it may well be that they are less inclined to use PayPal compared to alternative payment methods on their own website moving forward. It’s this that is the real long term impact on PayPal, not the more immediate loss of eBay TPV.

PayPal are currently in the final stages of partnership with Argentinian business operating online marketplaces in the US. According to PayPal’s chief executive officer Daniel Schulman, the team-up aims to boost the payments provider’s “international scope and scale.”

RELATED POSTS..

eBay Appoints Amy Bannerman as its in-house Pre-Loved Style Director

Step inside eBay’s Love Island shared wardrobe

eBay's fourth annual Recommerce Report

eBay’s fourth annual Recommerce Report

Wahaaj Shabbir - From sneakerhead to Head of Sneakers at eBay UK

Wahaaj Shabbir – From sneakerhead to Head of Sneakers at eBay UK

eBay UK returns as Love Island sponsor to promote pre-loved fashion

eBay UK returns as Love Island sponsor to promote pre-loved fashion

eBay Roadshow Belfast - 13th June

eBay Roadshow Belfast – 13th June

ChannelX Guide...

Featured in this article from the ChannelX Guide – companies that can help you grow and manage your business.

Latest

Take a look through a selection of the latest articles on ChannelX

Register for Newsletter

Receive 5 newsletters per week

Gain access to all research

Be notified of upcoming events and webinars