EBay Announces Plans to Replace PayPal as Main Payments Processor

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PayPal is expecting its overall revenue for the year to be between $15 billion and $15.25 billion.

As a customer, PayPal may appear to be an on-the-platform payments experience already but ever since eBay and PayPal parted ways, eBay is not control of payment processing as PayPal handles that end of the transaction.

"Over time, given the recent agreements with Visa and MasterCard, PayPal will be able to scale and expand margins", Wedbush Securities analysts said in a client note.

eBay has said the decision will result in lower payment processing costs for vendors as well as greater options for buyers as Adyen accepts payment in over 150 currencies.

While PayPal will remain a payment option for buyers, eBay predicts that a majority of its Marketplace customers will transition to the new payment experience by 2021. The company is hooking up with Dutch payment company Adyen, I know I never heard of them either. In an announcement by eBay (via Recode), eBay has announced that they have signed an agreement with Adyen, a payments processor from Amsterdam, where moving forwards Adyen is expected to be the platform's main payments processor.

X PayPal said adjusted fourth-quarter earnings were 55 cents a share, up 30% from a year ago, with revenue rising 26% percent to $3.74 billion, beating consensus estimates.

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After staying quite for a long time PayPal Holdings, Inc.

EBay now represents 13 per cent of transactions processed by Paypal. EBay and PayPal have agreed on terms to offer PayPal as a way to pay at checkout on the eBay intermediated model until July 2023. The Company's services facilitate transactions on its network among cardholders, merchants, financial institutions and governments.

PayPal has been steadily widening its customer base since it was spun out of eBay in 2015, having been predominantly focused on processing payments for eBay. Back in 2002, eBay acquired PayPal for $1.5 billion.

Adyen said it's "thrilled" to be getting its hands on the eBay payments business.

PayPal beat The Street when it reported fourth-quarter earnings after the bell on Wednesday. Analysts are forecasting earnings of $0.54 on a per share basis this quarter.

Now, eBay is looking to move on and has been seeking new options that would save it and users money. Earnings excluding some costs were 55 cents a share, compared with the average forecast for 52 cents.