EBay Rises to Record High on Shift to Adyen; PayPal Tumbles
- PayPal will remain as an EBay checkout option until July 2023
- Most EBay payments will be processed by Adyen in 2021
This article is for subscribers only.
EBay Inc. rose to a record high after giving an optimistic revenue forecast and unveiling plans to shift its payments business from long-time partner PayPal Holdings Inc. to Adyen BV, a global payments company based in the Netherlands. Shares of PayPal tumbled.
PayPal is currently EBay’s payments processor, meaning merchants selling on the marketplace have to have PayPal accounts to accept funds, and it will remain a checkout option for EBay shoppers at least until July 2023. But Adyen will gradually take over processing EBay payments, beginning in North America this year and will handle a majority of transactions in 2021.