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EBay plans to replace PayPal small European company. Perhaps the new contract means that eBay will accept payments in the cryptocurrency

Wednesday, January 31 Payment system PayPal has posted better financial results than expected, but the news was marred by the fact that the company Ebay has announced plans to find a replacement for PayPal.

After the last round of placement of securities at the initiative of Iconiq Capital cost payment system Adyen amounted to $ 2.3 billion. Since then there were rumors that the system is preparing to enter the open market.

EBay explained that her decision to integrate a new payment system Adyen will lead to lower costs and improve control on the part of merchants.

Peter van der Daz, the General Director of the Dutch payment system and Ayden.

On Wednesday, eBay giant to e-Commerce, announced plans to replace the principal’s payment service provider PayPal in Adyen.

As a result, the shares of PayPal, a company with a market value of more than $ 100 billion, fell sharply on the U.S. exchanges on Wednesday, January 31. PayPal shares continued to fall Thursday, 1 February, while eBay shares rose to almost record levels.

It should be noted that PayPal allows you to pay with cryptocurrency, the widespread use of which is increasing every day. So eBay decided to switch to a new, more universal payment solution, which may become Adyen.

What is Adyen?

Payment company Adyen is a much smaller startup with headquarters in the Netherlands. Adyen provides businesses with the services the back-end of payments, including credit card processing and system design (POS).

After the last round of placement of securities at the initiative of Iconiq Capital cost payment system Adyen amounted to $ 2.3 billion. Since then there were rumors that the system is preparing to enter the open market. Although the co-founder and CEO Peter van der Daz hasn’t revealed the date of a possible initial public offering (IPO), Bloomberg reported that it could happen this year.

PayPal, being one of the most well-known payment providers, faced stiff competition from other big players such as Square, Stripe and iZettle.

Adyen is a profitable company, but its scale pales in comparison with the giant PayPal in the United States.

So why is eBay, which owned PayPal until 2015, has decided to refuse services of this system in favor of a smaller European rival?

“Reduced cost” for dealers

The company said Wednesday, January 31, that the decision to integrate a new payment system Adyen will lead to lower costs and improve control on the part of merchants.

This step is part of the strategy eBay for “transition to full mediation when making payments”.

EBay said that its partnership with Adyen will allow buyers to have a more concrete idea of their data, and to manage and track all transactions and transactions with customers via eBay.

Server Adyen provides payment services for companies that use the same technology. This direct interaction with Adyen is not mandatory.

However, if you use PayPal users must first register and work in the PayPal interface to complete your transaction.

Adyen also boasts a huge base of clients, including Facebook, Arbnb, Spotify, Uber and Netflix.

«Integrated control»

EBay also said that the integration of the Adyen will provide customers with “more choice” with the transfer payments.

“We believe that we can offer a simple solution, providing buyers and sellers more choice when making payments”, – said the Executive Director of eBay Devin wenig, during a conference call with analysts, according to “The Wall Street Journal”.

The company added that soon a service of payment options will be available in many countries. Adyen enables customers to make payments in 150 currencies in the world.

In 2015 Adyen has signed an agreement with BitPay, which helps the system to process payments in bitcoins and other cryptocurrencies. So, thanks to this partnership eBay and Adyen, users will be able to pay for goods with bitcoin.

It will also allow buyers to checkout directly in eBay and not be sent to the PayPal interface to complete the purchase.

In a statement, emailed to CNBC, CEO and cofounder of Adyen Pieter van der Daz wrote:

“We are very pleased that eBay, one of the most successful companies in the field of electronic Commerce, has selected Adyen as a new global partner for payment processing. Adyen has unique capabilities that can meet the needs of these global markets like eBay. We look forward to start the transaction on eBay in North America and will support their global growth.”

EBay will allow customers to continue to use PayPal as an option when transferring payments until July of 2023, but most of the eBay payments will be made through Adyen by 2021.

The company also stated that PayPal “will remain an important partner of eBay”.

The post EBay plans to replace PayPal small European company. Perhaps the new contract means that eBay will accept payments in the cryptocurrency appeared first on FineCrypto.



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