eBay Signs Deal with Adyen to Launch New Payment Processing Service
In a move to manage payment flow and simplify the end-to-end experience for sellers and buyers, eBay has signed an agreement with the leading global payments processor Adyen. By intermediating payments on its Marketplace platform, eBay (NASDAQ: EBAY) intends to improve the customer journey. PayPal, which has been in partnership with eBay for 15 years, will be a payment option for buyers at the checkout until at least 2023.
Impact of New eBay Payments Processor
Payment processing fees are a challenge many small businesses and merchants face, with such costs eating into profits. eBay says the transition to full payments intermediation will result in lower payment processing costs for merchants, as well as greater payment options for buyers. Businesses and entrepreneurs who sell on eBay would naturally benefit from lower payment processing fees, as they would be able to hold onto more of the profit from their sales.
According to Scott Cutler, Senior Vice President of Americas at eBay, sellers on the site can expect to see lower costs tied to payments processing.
“As we look at the future evolution of the eCommerce experience, we wanted an opportunity to deliver a more seamless, frictionless experience to customers,” Cutler told Pyments.com.
A move that will benefit customers by giving them more options at the checkout and a more integrated checkout experience will likely be beneficial to businesses and individuals who sell on eBay, the company says. eBay believes by offering buyers more payment choices and expanding the geographical boundaries of payment options, sellers will be able to reach more buyers and improve conversion.
With lower payment costs, eBay’s move to start managing payments itself will give sellers on eBay greater control over their finances. eBay is also working on ways to provide sellers with a central place to manage their business on the site, including information about payments and customer interactions.
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This article, “eBay Signs Deal with Adyen to Launch New Payment Processing Service” was first published on Small Business Trends