eBay is launching Managed Payments in the UK this summer, the company announced today, part of its initiative to becoming a payments intermediary on its platform instead of PayPal, with which it split in 2015.
eBay will continue to allow buyers to use PayPal as well as other payment methods, but buyers will pay eBay instead of sellers, who will then receive disbursements from eBay.
eBay has launched Managed Payments in the US and Germany to a percentage of sellers, and the program continues to have some limitations, such as not being available for transactions in certain categories, for example, and it’s incompatible with the eBay Global Shipping Program.
eBay said it will continue the global expansion of Managed Payments later this year and expects to have transitioned a majority of its UK business sellers by the end of 2020, and a majority of its marketplace customers in 2021.
Press release follows:
The United Kingdom will be the third market to introduce eBay’s managed payments experience, continuing the program’s global expansion.
London, February 26, 2020 – As part of modernizing its marketplace and creating a more streamlined experience for customers, eBay is expanding its management of payments to the United Kingdom. As part of the rollout this summer, the company will offer buyers flexibility and choice in payment methods, and give sellers an easier way to manage their businesses.
The U.K. is the third market to offer eBay’s new payments experience, after the U.S. and Germany.
“We’re creating a modern managed marketplace. Taking control of the payments process on our platform is a key component of our strategy to enhance the eBay experience by breaking down barriers and removing complexities for our customers,” said VP of Global Payments Alyssa Cutright. “We’ve seen great success in the U.S. and Germany and we’re thrilled to expand to the U.K.”
“By starting to manage payments in the U.K. this year, we’re taking another step to deliver improvements for our customers,” said VP of eBay U.K. Rob Hattrell. “We know that sellers and buyers expect smooth and seamless transactions, and this new payments experience is designed to offer exactly that. In the coming months, we will make the transition as smooth as possible for sellers so they can take advantage of this important update quickly.”
eBay plans to offer buyers in the U.K. a variety of payment options, including credit card, Google Pay and PayPal. Apple Pay will also be available as a payment option on iPhone and iPad.
eBay started managing payments on its platform in the U.S. with a select group of sellers in September 2018, and expanded the experience to Germany in September 2019. The rollout has been paced by the terms of the Operating Agreement with PayPal, which expires in the second half of this year.
The company continues to make tremendous progress with its managed payments, having processed more than $2 billion in GMV for almost 25,000 sellers, and saving sellers almost $10 million as of the end of Q4 2019. Later this year, the company will continue its global expansion and expects to have transitioned a majority of its U.K. business sellers by the end of 2020 and a majority of its marketplace customers in 2021.
eBay Inc. (Nasdaq: EBAY) is a global commerce leader including the Marketplace and Classifieds platforms. Collectively, we connect millions of buyers and sellers around the world, empowering people and creating opportunity for all. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection.
SOURCE: eBay UK Press Release