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PayPal, eBay to stay interdependent for five years after split

Tuesday 21 April 2015 11:39 CET | News

PayPal has announced that both eBay and PayPal agreed that eBay would not reduce the volume of transactions it channels via PayPal, while continuing to get better rates for its merchants for five years after the split.

As already announced, PayPal is to be separated from eBays marketplace division in the second half of 2015, creating a publicly traded company, which some analysts say will be worth USD 40 billion.

eBay has agreed to ensure it will channel 80 percent of its online gross merchandise sales via PayPal, as it does now, for the next 5 years, Reuters reports. The two companies also agreed to pay each other a commission if the percentage of marketplace sales rose or fell above that mark.

PayPal, for its part, said it agreed to continue charging eBay merchants less than it does other merchants, which would mean that PayPal rates for eBay merchants will remain largely consistent with todays pricing relationship, the same source indicates.


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Keywords: PayPal, eBay, ecommerce, online payment, transactions , merchants, marketplace
Categories: Payments & Commerce
Companies:
Countries: World
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Payments & Commerce