eBay and PayPal extended their consumer-credit relationship, PayPal announced on Tuesday, meaning eBay will continue to accept and promote PayPal Credit on its Marketplace platform.
The two companies broke up in 2015, and eBay will begin testing its own payment processing system next month, while continuing to offer PayPal through its payments intermediation.
Tuesday’s announcement did not state how long the eBay – PayPal Credit agreement will extend.
The benefit to PayPal is obvious – it gets eBay shoppers to use its financing products.
The benefit to eBay: by allowing shoppers to finance their purchases, it helps them boost sales – particularly for higher-priced items.
eBay has offered PayPal Credit to its buyers since 2008 and sometimes sends out emails on PayPal’s behalf. For example, in March, eBay sent an email to its customers with the subject line, “There’s a special offer on items you’ve been looking at” – inside, it said, “Get 0% APR with 24 easy payments on eBay.com – ends March 31” – the offer was through PayPal Credit.
eBay Vice President of Payments Alyssa Cutright said in the PayPal announcement, “As part of our strong partnership with PayPal, we are pleased to continue to offer PayPal Credit to the millions of consumers who transact on the eBay platform.”
And PayPal Senior Vice President and General Manager of Global Credit Mark Britto said, “Providing the best payment experiences to our shared customers is at the core of everything we do. We look forward to offering an unmatched range of consumer financing options for eBay customers through PayPal Credit.”