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Say 'Goodbye' to PayPal: Adyen Replaces The Giant as an eBay Payment Partner
eBay says 'Goodbye' to PayPal! It's the end of the e-commerce alliance between two famous giants. This article shows all benefits the new eBay's partner - Adyen and some info about the future life of PayPal.
PayPal's Fall, Adyen's Ascending
Less than two months ago it was announced that eBay, one of the most prominent marketplaces globally, decided to stop their long-term partnership with PayPal. This time the scales were turned to the young Dutch platform, which is called Adyen.
This solution sounded rather surprisingly to many eBay customers. These two platforms were in a cooperation for such a long time that many don't imagine one existing without the other. But ruining the customers' habit doesn't bother eBay, as they consider the new partnership a more successful choice.
In turn, PayPal is threatened to lose their dominance in the web payments. Fortunately, despite all the changes on the map of forces, digital payments sector is now of the blooming. That's why it's predicted this won't prevent PayPal from the overall growth. For instance, if right after the announcement the PayPal's share price declined seriously, by the end of the year it should still exceed its January 2018 peak.
What Is Adyen?
Adyen exists in the market since 2006. While being much less known to the public, it's used by such services like Uber, Netflix, and Spotify. For now, it's still a private platform, despite the current predictions about an IPO this year.
What is completely new about Adyen compared to PayPal? This platform doesn't charge vendors for payment receiving. For eBay sellers, it's a very good news. As it's calculated in this report, eBay will win another $2bn in the revenue.
One can ask, what is the Adyen's interest to provide the services for nothing? Such a competitive deal can become a gamechanger for a modest Adyen with $178m of revenue in 2016. And PayPal with their $11bn have begun to take eBay partnerships for granted, so such a shift can be ruining for them.
'Full payments intermediation.' This is the idea which led eBay to this strange decision. The partnership with Adyen is just the first step forward the tighter payments integration.
Adyen is a great choice for that: having a track record of discreet solution implementation, the support for 150 various currencies, it's the best alliance for eBay growth continuation.
Payment Systems Become Diverse
PayPal has long been the most famous digital payment service in the USA and Europe. However, marketplaces grow as well as the importance of online transaction. Where is the demand, there is a huge set of alternatives. So, it's not a wonder why so many digital transaction projects appear every day.
Roobykon Software team has different projects in their portfolio with using payment gateway systems to base the operation upon (https://roobykon.com/
LumiArts, a fine art marketplace, is a project where Roobykon chose Stripe Connect. The reason was its huge compatibility with Sharetribe, an open source platform.
Another project, Bespaced.com, is one for renting a space for events. While developing this platform it was decided to choose Mangopay as its features are well compatible with the European market specifics.
One more Sharetribe-based marketplace the Roobykon web team worked on, HorseBuff, uses PayPal. This wasn't their technical advice, it was just a wish of the client. The new 'adaptive' service version was used and this method allowed combining extended flexibility with the advantages of a leading payment service adoption like confidence, etc.
There is the new current project in Roobykon working process, a water vessel renting service, and guys chose using Braintree, which offers us a range of other valuable benefits for a future marketplace.
The case with PayPal and eBay show us something very special: it's not enough to be well-known and established to keep up with the pace of technological growth. Gateway payment solutions now should be lean, strong, competitive, and take their own future into the consideration to stay in this business. Those who can think forward will rule the world tomorrow, no matter how strong the giants seem to be now. This piece of news is just a reminder, so it's time to make conclusions and lead the right path.
Roobykon Software / Julia Chernykh