New payment method coming to eBay.

[kopenhagen5]

Received an email today that eBay will be introducing a new payment method from Adyen.

At first glance it seems it will be very similar to PayPal.

Hope they are not planning on phasing out PayPal.

The transition to full payments intermediation will be a multi-year journey. eBay will begin intermediation on a small scale in North America starting in the second half of 2018, expanding in 2019 under the terms of the Operating Agreement with PayPal. In 2021, we expect to have transitioned a majority of Marketplace customers to the new payments experience. 

[digital*ghost]

Knew it was coming...  😕

Rather than a new payment method, it's more a new checkout system, so buyers will pay eBay via a checkout system not facilitated by PayPal (basically, for buyers it means they can pay via credit card without using PP as a guest, but according to the info PP will still be offered as a payment method - it's unlear to me ATM if that means sellers will still receive PP payments, or if they will go to eBay too and then be disbursed to the seller).

It'll work the same as the payment system on the other "E" (handmade) site, I warrant, so your funds accrue and then get transferred to you. On the "E" site you can do this daily, if you want, on the "A" site they pay out fortnightly. I wouldn't be surprised if eBay went with a longer timeframe.

They say "most" sellers will get reduced rates, but I doubt it. I'm on good merhcant rates with PP at the moment, and the rate via "E"s system is more than double in most cases. It'll affect anyone who makes use of PP's working capital loans, too, since sellers will get much less payments received directly through PP. And eBay's protection policies are likely to apply for INR / INAD - it will be interesting to see whether they'll provide protection for chargebacks... o.o 

[melbourneclearance]

They said expect the costs of payment processing to be reduced but said nothing about ebay's FVF. That probably means they will reduce the PayPal's 3% (2.5%? 2%? Small at least) by 0.01% and increase their own fees to Amazon's 20%.

I hope they don't phase out PayPal, I'm using that as the only payment method on my own website.

[kopenhagen5]

Thanks DG.

MC, PayPal will still be around, it's a stand alone company, I just meant I hope they don't phase it out of eBay.

PayPal is used by many, outside of online purchases, relatives sending money to each other etc.

[lm-entertainment]

saw the email and freaked out a bit as well. thankfully it seems it's going to be a year or two away before it gets rolled out anyway.

it's kind of frustrating when ebay were the one's responsible for making ebay so heavily-reliant on paypal for buyers and sellers - to the point of just about forcing it down everyone's throats. to go and change that and make it just another option, obviously means ebay isn't making the amount of money they want to from paypal. they can put any spin they like on it, but i'm sure that's the reasoning - there's no way they're doing it to benefit buyers or sellers. 

adyen does have some other huge partners like uber, netflix etc - though a lot of people have probably never heard of it. the strange thing is at it stands you have to apply to them to create an account and sign a contract, which i assume means the rates are based on sales / payment processing volume. guessing this will change once it starts rolling out on ebay, because it'll be too much of a complex system otherwise. 

will be very interesting to see how it pans out.. 

[sticker.bargains]

digital*ghost is spot on here. It'll be an "ebay wallet" type deal, where they hold onto the money for a predetermined time, before you can withdraw it. I'd bet the house that you'll be able to spend it on ebay instantly, though.

As for lowering fees...

Adyen state that you currently pay 12c per transaction (unsure if USD or AUD) plus points that vary on the method of payment. Most are 3%, but they won't quote a price for Visa or Mastercard. 

If you sell something for $10, ignoring ebay fees, you'll pay 30c + 2.4%. So with Paypal, the fees are 54c. With Adyen, fees are 12c + 3%, so you'll pay 42c. That's if the fees on Adyen's website are in AUD.

Also we won't have Adyen accounts - we will have ebay wallets/accounts. Adyen don't deal with us plebs. 

[lm-entertainment]

i saw that too - you can view the rates in AUD - but the problem seems to be is that each payment method has different rates and availability (ie paypal it says is negotitated on a contract basis) so i guess ebay will have fees for paypal which they've agreed to with them. also, it says something about interchange++ for the major credit cards - which i may be simply ignorant, but i thought there's probably some sort of charge on top of the processing fee for using these - ie an adyen membership / service fee etc. 

i guess we won't find out until it rolls out though.. 

[lm-entertainment]

for anyone who might not have got the email and wants to read about it - the ebay info is here - https://www.ebayinc.com/stories/news/ebay-to-intermediate-payments-on-its-marketplace-platform/

[character_parties_aus]

Fantastic Post

eBay wont be making this move to reduce the amount of money they can derive from sellers. They will be making this move to improve their papypal dependent payment system which one day will screw them if they have all eggs in one basket and at same time look for an opportunity to exert other ways of increasing indirect fees on existing sellers with perceived benefit.

Nothing has really changed other than the method in which profit is derived so just roll with it and increase your price by 2%!

[melbourneclearance]

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@sticker.bargains wrote:

If you sell something for $10, ignoring ebay fees, you'll pay 30c + 2.4%. So with Paypal, the fees are 54c. With Adyen, fees are 12c + 3%, so you'll pay 42c. That's if the fees on Adyen's website are in AUD.

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Smaller items may be cheaper but bigger items will be more expensive. For example, $100 items will favour PP. Ebay's claim that we should expect less fees seem to be conditional (on current information at least).

kopes, ebay is no doubt PP's biggest customer. Without ebay I'm not sure what sort of PP it will be. But I guess there are plenty of payment processors out there. We don't need PP.