The constant competition of famous marketplace leaders – Amazon and eBay, will probably never stop. The decisive measures taken by both sides in the struggle for leadership are becoming more visible. This year, eBay shows its determination by changing the main marketplace payment option and rejecting PayPal, which has been its partner since 2002.
eBay and PayPal worked closely for 15 years. PayPal was the main payment method of this e-commerce giant that provided PayPal with the opportunity to remain the leader of financial transactions (more than 13% of all payments processed by PayPal are payments from eBay)
Analysts predict significant damage to PayPal with this breakup. There is already data indicating PayPal shares fell by more than 8 percent after giving publicity news about the break with eBay in 2020.
In turn, eBay’s shares showed an incredible result yesterday, they rose by 15%, and this is the biggest profit per day since eBay’s debut on the market (1998). In addition, the company said it would add $500 million to operating profit after the end cooperation with PayPal.
It is already known that the place of PayPal, as the main payment processor, will be taken by the Dutch fintech company Adyen. This change is expected to attract more transactions in eBay in-house marketplace platform.
Moreover, according to analysts, eBay is moving in the right direction. And, after passing all the planned steps, it’s quite possible that eBay will be able to defeat its main competitor.
Marketplace Startup 