eBay intends to further improve the customer experience by intermediating payments on the Marketplace platform. In doing so, eBay will manage the payments flow, simplifying the end-to-end experience for both buyers and sellers. We have signed an agreement with Adyen, a leading global payments processor, to become our primary payments processing partner. PayPal, a long-time eBay partner, will be a payments option at checkout for eBay buyers.
Sellers do not need to take any action at this time. The transition to full payments intermediation will be a multi-year journey.
We are committed to creating the world’s most powerful selling platform, and building out our payments capabilities is the next step in that strategy.
Payments intermediation will bring significant benefits for eBay sellers. All sellers can expect a simplified pricing structure and more predictable access to funds, and most can expect their costs of payments processing to be reduced after they transition to eBay’s intermediated payments model. We’re also working on ways to provide sellers a central place to track and manage their business, inclusive of payments information.
By offering buyers more choice in how they pay and expanding payment options into more geographies, eBay believes sellers will be able to reach more buyers and improve conversion.
eBay will begin payments intermediation on a small scale in North America starting in the second half of 2018, expanding in 2019 under the terms of the Operating Agreement with PayPal. In 2021, we expect to have transitioned a majority of marketplace customers to the new payments experience.
As eBay gets closer to the initial phase of its intermediation efforts, we will share more details about this process and next steps for sellers. In the meantime, sellers can contact eBay now at paymentsinfo@ebay.com to stay up-to-date on eBay’s payments efforts and timing, share feedback, and ask questions.
For a deeper look at this news, read the eBay Inc. announcement.
