Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu July 20 2017 12:00:17

The Two Year Anniversary of the eBay PayPal Breakup

By: Ina Steiner

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Today marks the 2-year anniversary of the split between eBay and PayPal, a move eBay was forced to make due to pressure from activist investor Carl Icahn in 2015. The Icahn-instigated "eBay Breakup" officially took place at the end of a Friday afternoon summer, with PayPal going public the following Monday on July 20, 2015.

What we wrote this time last year still applies a year later: "For sellers, not much has changed thanks to eBay's 5-year operating agreements with PayPal in which it is penalized if the percent of GMV paid for through PayPal falls under its 2015 levels. eBay continues to favor PayPal in its Accepted Payments policy that restricts which payment methods sellers can advertise in their listings."

But PayPal has been wheeling and dealing, making its way into Apple properties including its App Store and set to announce a new "frenemies" deal with JP Morgan today, according to the Wall Street Journal.

Some investors still hold out hope that PayPal will similarly be able to crack the Amazon barrier, but that seems unlikely. In fact, Amazon is promoting its own payment service for merchants called Amazon Pay, which allows Amazon's customers to pay for items using their Amazon credentials rather than having to type in credit card numbers into checkout forms.

Amazon is not only going after online retailers, but according to an article in TechCrunch yesterday, it's also going after offline retailers with a service called Amazon Pay Places.

While some would argue PayPal is better able to compete against Amazon, eBay is now outmatched by Amazon, and it has Icahn and its 2014 board to thank, including former CEO John Donahoe and former founder and Chairman Pierre Omidyar.

eBay is releasing earnings this afternoon, and stay tuned for eBay Open in Las Vegas next week. Happy anniversary!

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Perminate Link for The Two Year Anniversary of the eBay PayPal Breakup   The Two Year Anniversary of the eBay PayPal Breakup

by: mcposty This user has validated their user name.

Thu Jul 20 13:34:34 2017

Paypal is worthless. Noone should accept it.

EBay is dead..Noone should use it.

Perminate Link for The Two Year Anniversary of the eBay PayPal Breakup   The Two Year Anniversary of the eBay PayPal Breakup

by: pace306 This user has validated their user name.

Thu Jul 20 13:43:32 2017

As told to me by more then a few Paypal reps ... Paypal is just basically an insurance company with a factor behind them.

They "gamble" with each payment, to insure the data they have on each buyer is correct.

All they care about is a buyer having a valid CC or bank account to get funds from - in most cases, and when something goes wrong .. the factor is there to eat the loss.

Ive covered issues with them, where I tell them about the fraud, the shipping to places that google/zillow say dont exist or are for rent - and their response is "dont worry, the factor will cover it - dont be alarmed".

eBay of course will never let anyone else besides Paypal into eBay, since EVERYONE on the planet knows that the "split" is on paper ONLY.

How else could Paypal see your sensitive data, and how could eBay FORCE Paypal to debit you - as in cases of returns. If you buy a Panasonic TV from Macys, Panasonic cant tell Macys ANYTHING - only your CC can. But like most (all?) things on eBay - the illegalities and the crookedness are "whats for dinner".

Its different then on Amazon since on Amazon - THEY are doing the merchant processing.

Paypal ISNT even a bank - legally they are nothing more then a predatory Pay Day lender with an insurance company that processes credit cards.

eBay is about control (not that Amazon isnt) and this "SPLIT" as they call it, benefited NO ONE but the stock holders.

At least thank GOD that JD pushed off from eBay to Paypal. True its a small victory - but a victory non the less.

More of the same to be expected.

Perminate Link for The Two Year Anniversary of the eBay PayPal Breakup   The Two Year Anniversary of the eBay PayPal Breakup

by: FeelingFroggy This user has validated their user name.

Thu Jul 20 14:16:32 2017

Why would anything change.....Both these corrupt companies are like siamese twins. Both joined at the hip.

One doesn't do anything without the consent of the other....Someday wall street snowflakes will wake up and smell the coffee. Till then nothing is going to change.

Perminate Link for The Two Year Anniversary of the eBay PayPal Breakup   The Two Year Anniversary of the eBay PayPal Breakup

This user has validated their user name. by: Rexford

Fri Jul 21 09:08:03 2017

Still joined at the hip unless you have an issue.  At that point one will blame the other for the problem.

Perminate Link for The Two Year Anniversary of the eBay PayPal Breakup   The Two Year Anniversary of the eBay PayPal Breakup

by: spooky This user has validated their user name.

Fri Jul 21 09:35:20 2017

why is it that the Paypal link on the corresponding eBay sale page almost NEVER brings you to the actual Paypal page but instead just brings you to your Paypal account from which you have to then hunt around for the sale?



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