eBay Details Plans to Replace PayPal as Main Payments Processor With New Partner Adyen

eBay this week announced major changes coming for both buyers and sellers on its online marketplace, with a plan to phase out its 15-year-long partnership with PayPal and eventually integrate Amsterdam-based payments company Adyen as its "primary partner for payments processing globally" (via Recode). This will eventually affect all eBay customers on every version of the site, including desktop and its iOS and Android apps.

The process will happen over a long period of time, beginning with payments intermediation on its marketplace -- essentially helping sellers and buyers transition to Adyen -- in the second half of 2018. This will be a "small scale" initial expansion, and grow further throughout 2019. eBay currently has an operating agreement to keep PayPal as its primary payments processor through mid-2020, so the plan is to have "transitioned a majority" of its marketplace customers to Adyen by 2021.


After that time, PayPal will be relegated to a secondary checkout option for customers until July 2023. Following that transition it's unclear whether eBay and PayPal's partnership will end completely, or if the payments company will simply continue as a secondary option in checkout.

For Adyen, eBay noted that there will be "additional payments-related data" required to transition to the new platform, with these steps "required" to continue selling on eBay. Still, the company ensured that most of the ways that buyers and sellers pay for and receive money on the site will "be very similar" to how it worked with PayPal.
The way that sellers engage with eBay in an intermediated landscape will, for the most part, be very similar as they do today. For example, sellers will not need to change their accounts with eBay. Sellers will continue to log into eBay and manage their listings as they do today. As eBay begins to intermediate payments, sellers can expect to see new, streamlined dashboards and reports inclusive of payments – all within eBay.
eBay said customers will benefit from this shift in multiple ways, including lower costs of payments processing for sellers, as well as a simplified pricing structure and "more predictable access" to funds. Buyers will have more payment options, which eBay hopes will increase checkouts on the site. Additionally, because Adyen focuses solely on providing back-end payments services and will not link out to a secondary website, eBay said it will now "manage the entire checkout experience" so the payment process can be more streamlined.

PayPal became eBay's main payments provider in 2003, following eBay's acquisition of PayPal a year prior at $1.5 billion. In 2015, the companies split to become separate public companies, but agreed upon a deal that keeps PayPal as its primary payments provider for five years, through 2020. For PayPal, the company has been expanding its own reach in online payments over the past year, allowing friends to pay one another in Facebook Messenger and introducing Venmo as an online payment option at more than two million retailer websites last October.

Ahead of the launch of Apple Pay Cash -- which works like Venmo in letting users pay one another through an app -- PayPal CEO Dan Schulman said he didn't think Apple's peer-to-peer payments platform would hurt Venmo because of Venmo's availability across ecosystems. "We’re technology agnostic," Shulman said at the time, emphasizing that this provides the PayPal-owned company a "powerful advantage" over rival P2P platforms.

Tags: eBay, PayPal, Adyen

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PayPal Offering $100 iTunes Gift Card for $85 on eBay While Supplies Last

If you're looking to start stocking up on iTunes gift cards for the holidays, PayPal's Digital Gifts storefront on eBay today has the $100 iTunes gift card at $85 for customers in the United States. You'll need to be logged into a PayPal account, and once you complete the purchase the digital gift card will be emailed to you with a code to add the credit to your iTunes account.


Discounts on iTunes gift cards are getting more frequent as holiday shopping nears, with most deals marking $50 and $100 cards off by 15 percent. As Black Friday gets closer, you can expect larger discounts -- of around 20 percent off -- to begin popping up at various retailers. We'll be sure to notify you when these holiday deals begin happening; you can also keep an eye on our Black Friday Roundup and Deals Roundup for even more of the latest Thanksgiving and Christmas sales.

Note: MacRumors is an affiliate partner with eBay

Related Roundup: Apple Deals
Tags: eBay, PayPal

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You Can Now Pay Friends Through Facebook Messenger Using PayPal

Last year, PayPal launched within Facebook Messenger as a way for users to shop and complete payments directly through the messaging app. Today, the two companies are expanding the focus of this feature and opening up peer-to-peer payments for Facebook Messenger users who have linked their PayPal account to the app.

With a rollout starting today, Facebook Messenger users will be able to tap on the blue plus icon within the app, then select the green Payments button, and choose PayPal to send money. This functionality will work in one-on-one conversations, as well as in group texts. PayPal said this will make it easy to split a bill, pay rent, and more.


Although PayPal's press release doesn't specify, the company's image depicting the new feature confirms that a user's PayPal balance and linked banking accounts can be chosen for P2P payments in Facebook Messenger.
We’re excited today to announce an expansion of our relationship with Facebook with the addition of PayPal as a funding source for peer-to-peer (P2P) payments, right in Messenger. People will have the option to send and request money using their PayPal account, and this integration in Messenger is starting to roll out to U.S. consumers today.

As the leader in P2P payments with $24 billion in P2P volume during Q3 2017 alone (up 47% year-over-year), the ability to send and request money in Messenger – one of the most widely used apps in the world – gives people more choice and more convenient ways to get things done in different contexts. Whether it’s splitting a bill for a cab ride or a night out, paying for your share of the rent, or making sure you get paid back for Mom’s birthday present, PayPal makes exchanging money between friends and family simple.
There will also be a new PayPal customer service bot for Messenger, letting PayPal customers receive account support without leaving Facebook's app. Specifically, with the company's bot PayPal users will be able to reset passwords, ask for help with refunds or payment issues, and other general account inquiries.

PayPal's new P2P solution in Facebook Messenger is debuting ahead of Apple Pay Cash, which still has an unclear launch date in a future update to iOS 11. When it releases, Apple Pay Cash will let users send money to one another within Apple's Messages app.


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PayPal Announces Over 2M U.S. Retailers Will Begin Accepting Venmo Payments Online

PayPal today announced that "more than two million" retailers in the United States will now accept online payments from the PayPal-owned, peer-to-peer payments platform Venmo. Users with Venmo accounts will be able to pay on retailer apps like Forever 21, Foot Locker, and Lululemon starting this week (via Reuters).

With the addition of Venmo into the checkout process of these apps, Venmo customers can use their app balance, linked cards, or bank account to shop on the mobile sites of "almost all merchants that accept payments with PayPal." The peer-to-peer payments app will appear as a checkout option similar to PayPal and other mobile wallets.

“At Venmo from the very early days our vision was to always let you use it for whatever you want to buy,” Ben Mills, head of product, at Venmo, said in an interview.
Venmo will charge merchants fees for processing payments through its platform, with Venmo head of product Ben Mills stating that the service's ease of use "could help increase" the company's sales.

Another update coming down the line -- first announced over the summer -- will let users transfer their app's balance to their bank account instantly, for a transfer fee of $0.25. Currently, Venmo transfers to bank accounts are free, but take up to a day to complete.

PayPal is said to be looking to bolster Venmo's stance in the peer-to-peer payments market following the launch of Zelle earlier in 2017, and the impending debut of Apple Pay Cash. However, PayPal CEO Dan Schulman has said he doesn't think Apple Pay Cash will hurt Venmo, mainly citing Venmo's availability across platforms as its leg up on Apple's iOS-only P2P payments.

Tags: PayPal, Venmo

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You Can Now Send Money With PayPal in Skype App on iPhone and iPad

Skype today announced that users across 22 countries can now send money with PayPal in its mobile app for iOS and Android.


Skype said the person-to-person payments feature is rolling out today in the United States, United Kingdom, Austria, Belgium, Canada, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, Portugal, San Marino, Slovakia, Slovenia, and Spain.

Where available, users will need to link their PayPal account to their Skype profile. In a chat, users can then swipe right, tap Send Money, and complete the near-instant money transfer process, which is handled by PayPal. Both the sender and recipient must reside in one of the 22 countries supported.

PayPal within Skype will support currency exchange as usual. If a user is sending funds from the United States, for example, to someone in Europe, the user will have the option to send money in euros if preferred.

The feature will require the latest version of Skype for iOS, available as a free download on the App Store [Direct Link]. However, users receiving money can have any version of the Skype app installed.

Tags: Skype, PayPal

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Apple Adds PayPal as Payment Option for iTunes, App Store, and Apple Music

From today, PayPal customers in the U.K., Australia, Canada, Mexico, and the Netherlands can use their PayPal account to pay for App Store, Apple Music, iTunes, and iBooks purchases made on their Apple devices. PayPal said on Wednesday the option would be rolling out to other countries including the U.S. soon after.

Previously, Apple users were only able to pay for transactions using a registered bank card or gift card. The new option means it's now possible to make purchases across iPhone, iPad, and iPad touch and Mac using a PayPal account. To select PayPal in the payment method options on iOS, go to Settings -> iTunes & App Stores and tap on your Apple ID, then select payment information. The same options can be found in iTunes on Mac or PC via the Account Quick Link.

Once users have updated their account settings for the above services, all future purchases made with the customer's Apple ID will be automatically charged to their PayPal account. This includes purchases of apps, music, movies, TV shows, and books, as well as Apple Music subscriptions and iCloud storage.

The new payment option brings PayPal's One Touch service to Apple accounts for the first time, meaning users can purchase from all Apple devices including Apple TV and Apple Watch, since they don't have to sign in every time they want to make a transaction. PayPal said the system provides a "secure and versatile payment method to meet the growing demand for digital entertainment."

(Thanks, Rick!)


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PayPal CEO Doesn’t Think Apple Pay’s Peer-to-Peer Payments Update Will Hurt Venmo

In a new interview with The Telegraph, PayPal CEO Dan Schulman discusses a wide range of topics covering the origins of the company, its history with eBay, and potential competition with Apple in the peer-to-peer payments space. PayPal owns Venmo, one of the most popular P2P payments apps available today across iOS, Android, and the web, and Schulman cited this availability across various operating systems as a "powerful advantage."

Schulman said that many users have a variety of devices sold by different companies, and the ability for Venmo to be on all of them is where it will stand out from Apple Pay's upcoming P2P update, which will be able to send money through Messages only on Apple devices.

Image via The Telegraph
“We’re technology agnostic,” he said in an interview with The Telegraph. “Many individuals are [a] multi-operating system; they can have an Android phone, a Microsoft PC and an Apple tablet. You don’t want a different payment methodology on each of those things … you want a consistency across that.

“We try to offer a consistent value proposition, that’s end-to-end, across operating systems and device type. It’s a powerful advantage we have.”
PayPal and Venmo also control several parts of a payment process made through its apps, including risk assessment and customer protection. Shulman stated that the company owns "the full value proposition" of a payment made between users on Venmo, while Apple "can only provide what they hope is a good user interface."
Unlike Venmo, Apple’s service will not work on Android phones or Windows laptops, and whereas Apple has to work with credit card companies to make payments, PayPal controls several parts of the payments process, such as risk assessment and customer protection.

“We own the full value proposition, Apple can never do that because they don’t do the risk associated with it, they don’t do the onboarding, they can only provide what they hope is a good user interface. We try to provide that end to end value proposition and very importantly we do it across operating systems.”
Apple Pay's P2P update is set to launch this fall with iOS 11. During the announcement at WWDC, Apple said that when users get paid they will receive money in a new "Apple Pay Cash" account, which they can then use instantly to make a purchase using Apple Pay in stores or online, send as a payment to someone else, or transfer it from Apple Pay Cash to their bank account.

Related Roundup: Apple Pay
Tags: PayPal, Venmo

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