eBay cuts PayPal out of seller payouts
Ebay is streamlining the way buyers check out and sellers are reimbursed, a move that includes removing PayPal as a direct payment option. It's another signal of eBay winding down its formerly symbiotic relationship with PayPal.
Instead of getting paid directly from buyers via PayPal, eBay will send funds directly to sellers’ bank accounts and charge lower fees, eBay contends in a Tuesday press release.
The shift comes as eBay begins managing payments with a checkout process it controls directly so shoppers need not leave the site to make purchases, through an integration with Adyen the e-commerce platform announced earlier this year.
The changes will be introduced gradually, and sellers need to make no changes to existing processes. Buyers and sellers will have new payment and payout options in the U.S. beginning this year, outside the U.S. next year and by 2021 the majority of eBay’s marketplace will be under its new payments structure.
“The introduction of eBay’s new payments experience in the U.S. marks a significant milestone in our managed payments journey,” said Steve Fisher, eBay’s senior vice president of payments, in the release.