Daily Management Review

eBay changes PayPal for Adyen


02/02/2018


PayPal has been the main eBay payment service for 15 years. Now it will be replaced by the Dutch service Adyen. PayPal will still remain one of the payment methods available to buyers on eBay.



OFFICIAL LEWEB PHOTOS via flickr
OFFICIAL LEWEB PHOTOS via flickr
PayPal has been the main eBay payment service for 15 years. The companies split in 2015, but so far they are still bound by a cooperation agreement, which expires only in 2020.

As stated in the eBay message, users of the auction will be able to pay through PayPal at least until July 2023.

"PayPal and eBay are carrying out fruitful cooperation, under which PayPal will continue to provide eBay with a comprehensive payment solution until July 2020. Realizing the importance of saving PayPal as a method of payment on eBay, the companies signed a protocol of intent, according to which PayPal will be available on eBay until July 2023. We are happy to continue to develop our relationship with eBay, providing eBay buyers and sellers with an innovative, reliable and stable way of payment, "the company said.

Changing the payment processing system will reduce costs for sellers and expand the capabilities of customers, says eBay. Adyen accepts payments in 150 currencies, its services are used by many high-tech companies, including Uber.

In the fourth quarter of 2017, eBay increased its net profit by 3% to $ 618 million, revenue - by 9% to $ 2.6 billion.

The number of active buyers in October-December increased by 5% to 170 million people. The total volume of purchases made last quarter increased by 10% to $ 24.4 billion.

In the first quarter, eBay expects to receive adjusted earnings of 52-54 cents per share on revenue of $ 2.57-2.61 billion. Analysts expect an average adjusted earnings per share of 52 cents on revenue of $ 2.40 billion.

In 2018, eBay forecasts revenue growth of 7-9% without taking into account currency fluctuations to $ 10.9-11.1 billion, earnings per share - by 12.5-15%.

Adjusted earnings PayPal in October-December was 55 cents per share with a consensus forecast of 52 cents per share. Quarterly revenue of PayPal jumped by 24% to $ 3.7 billion.

The total volume of payments through PayPal grew in the IV quarter, the number of active accounts reached 227 million.

Shares of eBay went up by 8.4% during preliminary trades on Thursday, PayPal lost 11.1%. Over the past 12 months, eBay's capitalization jumped 27% to $ 42.4 billion, PayPal - by 115.6% to $ 102 billion.

source: reuters.com






Science & Technology

Apple to come up with AR glasses

WEF: Big data regulation becomes a problem

Israeli Firm Accused Of Spying By WhatsApp, Lawsuit Filed Against It

Google Used Quantum Computer To Solve Complex Problem

Mars Had Earth-like Salt Lakes

Study: AI is not as profitable as you might think

Porsche, Boeing set to develop flying electric car

Samsung to invest $ 11 billion in new generation displays

US is betting on Nokia and Ericsson to replace Huawei

UPS becomes first to receive full regulatory approval for UAV shipping in USA

World Politics

World & Politics

Argentina finds a way to pay off IMF loan

Sweden closes Assange rape inquiry

Has Chile Put All Its Eggs In One Basket To Turn Towards Renewable Energy?

‘We Are Woefully Underprepared’ As Glaciers Meltdown Leaving Global Water Supply At Risk

US to reconsider medical data security laws

Vale hiding information about problems at Brazilian dams could result in death of 270 people

US Lawmakers Introduce Bill About Xinjiang Uygur Camps In China

European Council agrees to extend Brexit again