In a move that rather historic move, eBay have announced today that they are ending their company-long partnership with Paypal in favor of Adyen for payment processing. eBay have explained that this is an effort for them to take more control of their payment processing after the companies splitting two years ago.

This evening eBay sent the following letter to all of their users:

[su_quote]Dear [ebay user],

eBay is happy to announce plans to further improve the customer experience by intermediating payments on our 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.

You do not need to take any action at this time. The transition to full payments intermediation will be a multi-year journey.

Over the past three years, eBay has transformed its business to drive the best choice, most relevance and most powerful selling platform. Building out our payments capabilities is the next step in that strategy.

Payments intermediation will bring significant benefits for eBay sellers. You can expect a simplified pricing structure, more predictable access to funds, and most sellers can expect their costs of payments processing to be reduced. We’re also working on ways to provide sellers a central place to track and manage their business, which can soon include 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. The transition to full payments intermediation will be a multi-year journey. eBay will begin 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.

Again, you do not need to take any action at this time. 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, please read the eBay Inc announcement for further information. For any immediate questions or to share feedback, please email

We’re looking forward to what’s next, and to getting there with you.

As always, thank you for selling on eBay.

Bob Kupbens VP, B2C Selling

Laura Chambers VP, C2C Selling[/su_quote]

Considering eBay was undoubtedly PayPal’s largest partner and revenue stream to date, it will be interesting to see where the PayPal goes from here. They’ve clearly been making a stronger attempt to appeal to younger users with their recent “new money” ad campaign and purchase of the popular app, Venmo, a few years ago but only time will tell how well they fare without that reliable income stream.