PayPal implied eBay’s launch of managed payments is flawed because it doesn’t include PayPal as a payment option in its initial incarnation. It was no coincidence that two days before its quarterly earnings, PayPal released a study that showed shoppers are more likely to buy when PayPal is included in checkout. eBay is excluding PayPal from managed payments until July 2019.
The study, released on October 16, showed that 59% of PayPal users have abandoned a transaction because PayPal wasn’t there.
The study also found that when comparing credit cards, debit cards and “all other relevant digital wallets,” PayPal is the most preferred payment method by consumers. At the same time, 59% of people who use PayPal said they have abandoned a transaction because PayPal wasn’t there.
Schulman referenced the study during the question-and-answer period of PayPal’s earnings call with Wall Street analysts on Thursday.
eBay hasn’t explained why it excluded PayPal from its initial managed payments launch, which is being powered with help from Adyen.
PayPal included a link to the research study, conducted by IPSOS, in this post.