Ebay puts an end to PayPal: what’s changing now for the internet giant

PayPal and Ebay have split up since 2015. Now both companies are completely ending their existing cooperation. This applies to sellers – and indirectly also to customers. Early adopters report that PayPal is no longer a viable payment option for them.

PayPal and eBay: What’s Changing?

So far, the platform has been provided by Ebay, and the payment has been handled by PayPal. But now Ebay not only wants to be the initiator of the sale, but also wants to fully realize it. The Internet giant is based on its archetypal Amazon. Here, too, all payments – like the order – are made by Amazon.

Ebay now relies more specifically on the Dutch payment giant Adyen for technical implementation. The payment processor runs in the background and is not visible to customers.

What will change for eBay customers?

If you browse eBay for offers, you will still be able to pay with PayPal. This was also confirmed by the press office by CHIP.de. In addition, bank transfers (from the supplier “Sofort”), installment payments, credit card, Apple Pay, Google Pay and payment to account (eg by Klarna) are offered.

Experts are still divided over whether eBay dealers will raise their prices. Especially since Ebay also charges a commission on the net amount (the price includes shipping and packaging), retailers can now pass on higher fees to their customers.

PayPal and Ebay gradually terminated their exclusive partnership a few years ago. Until a few years ago, Ebay customers needed an additional PayPal account to buy products.

Click here for coupons – Click here for coupons

Dealers in particular are affected by the change

The transition is more important for buyers selling goods on eBay. You already had to accept the new terms and the new payment processing. But the whole thing has a catch. First-time retailers report that they cannot post or edit any listings because they have not consented to the new payment processing. Ebay writes in the business department, “Switch now to continue selling.”

With this new concept, retailers only need to enter their bank details. An existing PayPal account is thus taken to the background, and PayPal also takes less money. Ebay explains that changing the currency makes it much easier for sellers who bid on eBay to see what fees are actually due – and what will eventually be credited to their account.

Since the money transferred first goes to eBay and then goes to the seller’s bank account, retailers have to pay indirectly in advance.

Ebay has so far retained ten percent of the selling price – excluding shipping and packaging. However, the platform could not charge more than 199 euros for the item sold. The sellers also had to pay around 2.9 percent of the selling price to PayPal – and pay a flat rate of 0.35 euros, reports CHIP.de.

As a result of the exchange, a commission of eleven percent applies to products that cost less than 1,990 euros. For products over EUR 1990.01, the commission drops to two percent. Only 35 cents is payable per transaction – whether it’s PayPal or not.

Calculation example:

  • If the dealer sells a book for 20 euros, under the new rule, he has to pay a commission of 2.55 euros. At the start of the year, there was still a fee of around 93 cents and a commission of 2.00 euros.
  • However, if a retailer sells a gaming PC for 2,000 euros, the following applies prior to going public: the seller had to pay Ebay a commission of 199 euros and 38.35 euros to PayPal. Due to the change, the commission is now 40 euros. In addition, the transaction costs 35 cents, which is “only” 40.35 euros in fees.

The separation was decided in 2015

Ebay acquired the US PayPal payment processor in October 2002 for $ 1.5 billion. In Germany, Ebay integrated the payment service two years after the acquisition. In September 2014, it was announced that the two companies were splitting up. Since then, PayPal and Ebay have been independently listed on the stock exchange.

Ebay

eBay - Finance100

During the separation, the two companies agreed that processing through the payment service would only last for around five years. However, in 2018, the first beta version of the internal payment service was implemented.