eBay payments France, Italy and Spain are coming next and it’s been announced eBay will start taking over payments in the first quarter for 2021 – sellers in these countries are probably breathing a sigh of relief that they won’t be migrated in the fourth quarter so there will be no disruption in the busiest time of the year.
eBay began managing payments in the US for a select group of eligible sellers in September 2018, followed by expansions to Germany in 2019 and the UK, Australia and Canada earlier this year. Many UK sellers have already migrated with a further tranche of business sellers having activation dates this September. By the time eBay payments France, Italy and Spain go live, millions of businesses around the world will already be using eBay Payments.
The expansion to multiple countries this year and next is due to a significant milestone at the end of July with the expiration of eBay’s Operating Agreement with PayPal. Now, eBay is able to scale its management of payments globally.
At the end of Q2, eBay had already enrolled over 255,000 sellers in managed payments globally. Since launch, eBay has managed payments for nearly 42,000 sellers and processed $4.7 billion in GMV. They continue to be on track with its roll out of managed payments, transitioning a majority of sellers on its marketplace into the experience in 2021 and aiming to complete the process in 2022.
Managed payments is expected to deliver $2 billion in revenue and $500 million in operating income in 2022 thus satisfying eBay’s goal to deliver better value for shareholders. However perhaps more importantly, for the first time in it’s 25 year history, eBay have a single sign on sales and payments platform at last bringing them into line with every other ecommerce platform on the planet. One might even be forgiven for saying ‘About time!’.
“By managing the payments process, we’re creating a simpler, more unified experience for our customers, and streamlining operations for our sellers with one place to sell and get paid. As we continue expanding and scaling our management of payments around the world, we’re excited to add France, Italy and Spain to our growing roster of countries.”
– Alyssa Cutright, Vice President of Global Payments, eBay