Ebay UK to divorce PayPal and take complete control of sale and payments

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Ebay UK is set to end its deeply embedded relationship with PayPal and launch its own ‘managed payment experience’ for both buyers and sellers.

PayPal and Ebay are set to complete their divorce agreement in July, giving the online marketplace freedom to take control and dramatically expand its own payments experience.

The UK will be the third market to see Ebay roll out its new payment programme “this summer”, following trials in the US and Germany throughout 2018 and 2019.

Ebay shoppers will soon be able to pay using a variety of methods including Paypal, credit card, Google Pay, and Apple Pay via iPhones and iPads.

READ MORE: Ebay close to selling $10 billion classified-ads business

The divorce from PayPal could see a range of common frustrations ironed out for Ebay shoppers, including having to bounce between both Ebay, Paypal and credit card providers to chase refunds.

Now Ebay’s one-stop-shop will have control of both the sale and the money, meaning they will be the only source to deal with for any financial conflict between buyers and sellers.

According to Ebay its managed payments have processed more than $2 billion (£1.54 billion) in gross merchandise value (GMV) for almost 25,000 sellers and saved them a collective $10 million (£7.7 million).

“We’re creating a modern managed marketplace,” Ebay’s vice president of global payments Alyssa Cutright said.

“Taking control of the payments process on our platform is a key component of our strategy to enhance the Ebay experience by breaking down barriers and removing complexities for our customers.”

Ebay UK’s vice president Rob Hattrell added: “By starting to manage payments in the U.K. this year, we’re taking another step to deliver improvements for our customers.

“We know that sellers and buyers expect smooth and seamless transactions, and this new payments experience is designed to offer exactly that. In the coming months, we will make the transition as smooth as possible for sellers so they can take advantage of this important update quickly.”

The new payment system is expected to be rolled out to a majority of its UK business sellers by the end of 2020 and a majority of its marketplace customers in 2021.

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41 Comments. Leave new

  • I hope that reduces buyers fees!

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  • PayPal rip off hold your money happy ebay sorting there heads out getting rid off paypal

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    • Ebay always side with the Buyers in any dispute, if the buyer damages it then you could lose thousands like i did. (the item was brand new and checked over by the buyer. All the buyer has to say is not as discribed and they get there money back and if your item is in the other side of the country would you really want to collect it like ebay tell you to???. Some customers hope you wouldnt go all that way so they get to keep it and also be refunded. Ebay is now a big scam. Paypal were helpful though, Thanks paypal 🙂

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      • What a (Too usually trotted out) pathetic opinion!
        Sorry but you are wrong! EBay do NOT always agree with the buyer!! I was recently ripped off by a seller who was listing Counterfeit li-ion batteries on ebay (Vapestore_9)) Not rhe e Bay ID!! SENT BACK his Counterfeit batteries and he TRIED to retaliate by showing “3Potators in the box. And on another picture the same box with three taters in it… 3 DIFFERENT SIZED ones!! ?. But AS the package weighed 1.8kg he would have had to place well over 3 lbs of potatoes in the box to make up the weight. Which I posted via the PO to get a receipt. And they Weigh packages DON’T THEY?? BUT!! EBay STILL found for the SELLER!! BUT pay pal refunded!! My REAL gripe is though, that eBay are STILL LISTING HIS COUNTERFEIT BATTERIES ? WHY??

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      • Paypal are far from helpful in any situation, the way they run their so called finance intermediary is nothing short of criminal. They close account left right and centre for no reason and when questioned about it they have the same response every time, “we are unable to give you that information” I know of 12 people now who have had this happen but the strange thing is every single one of them had over £1000 in their account at the time. Paypal permanently limits the account and holds the money for 180 days. And don’t tell me that banks, google pay and other payment suppliers do the same as they would happily give you a reason or at least a clue as to why it happened. As previouslt stated, paypal themselves are the scammers although ebay isn’t that far behind.

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      • lorraine morris
        November 9, 2020 3:07 pm

        Totally agree with you

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      • Agreed! I just left eBay after 21 years

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        • Completely agree!I have just had my PayPal account closed by PayPal because I had received two payments they classed it as fraudulent and froze my money till the see if it will impact them financially! No it will not impact them fianacially as they take their fee before I see my money anyway! All my transactions have been purchases that have been paid through PayPal but taken directly from my bank account till recently where I sold a few items while trying to raise funds to help towards the cost of a divorce now have to wait 6 months for them to release my money!!! Furious isn’t the word!

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    • Don’t be so sure ebays new system held funds for a transaction of less than ten pounds of mine. They have stated that the payout process starts when the order is confirmed but this is a lie, it starts when the item has been delivered so unless you now pay for a higher service which is significantly more than the standard service of delivery. you have to either wait up to a week if using a standard service and then your funds can be released and hope it gets there otherwise a failed delivery or lost delivery will result in a confrontation with ebay to resolve or pay tracked and still wait but now you’ve guaranteed that ebay can be notified of the delivery automatically via the tacking but that comes at a higher cost. This system is far from efficient and I can’t believe I’m saying this but it would have been better through paypal

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  • Either way ebay have got greedy with their fees, even taking a cut off the postage costs. I don’t suppose it’s going to be any cheaper.

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  • Ebay always side with the Buyers in any dispute, if the buyer damages it then you could lose thousands like i did. (the item was brand new and checked over by the buyer. All the buyer has to say is not as discribed and they get there money back and if your item is in the other side of the country would you really want to collect it like ebay tell you to???. Some customers hope you wouldnt go all that way so they get to keep it and also be refunded. Ebay is now a big scam. Paypal were helpful though, Thanks paypal 🙂

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  • Ebay totally side with the buyer. The amount of return postage I have paid out for items that have had nothing wrong with them. Why should should Ebay care though as long as they get their 10% and whatever other fees business sellers have to pay them to have the privilege of using their website.

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  • This will change the game. Reluctant to sell on eBay but now, l am excited

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  • Ebay do NOT decide about returns?! Its the laws in the UK!! (BUT, EVER tried appealing??) All eBay does is apply the law and its up to YOU the seller to mitigate these losses!! Try acting more like Chinese sellers!! GOOD actors the Chinese. ?.

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  • Hi eBay I rely on PayPal payment so I’m out

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  • Why didn’t you use a eBay free return label which you get off the seller no costs then to either of you.

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  • Jayne Griffiths
    February 28, 2020 8:27 am

    Ebay side with Ebay, if the buyer complains yes they side with them but equally they dont care if people are selling counterfeit items, of which there are thousands on Ebay. Alot of the perfumes, makeup, hugo boss, trainers (unless one off items)etc are fake. The list is endless. Giving other options to pay is just another way of ebay making more money it will not alter the buyer/seller experience when its comes to dishonest buyers and sellers.

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  • This Is totally gone cost sellers more fees. Because say you sell 5 items on your account PayPal would charge a % plus 20p per transaction even if the buyer buys 5 items. Now I bet eBay will want 5x the 20p costing more fees. No way will thay let the sellers keep the 3.5% and 20p per transaction. I think shpock is the new way to go it’s growing and my sales on there are too.

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  • PayPal is probably the worse company I’ve ever had to deal with! Absolutely appalling!

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    • Angela Fairhurst
      April 29, 2021 9:36 pm

      Ebay are putting fees up to 12.8% so they are effectively taking what you would have paid paypal. I wont be selling on ebay anymore as I am not giving them my bank details.

      Reply
  • what will be the difference then ? is it benefits to buyers or sellers ?

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  • Sandra Bishop
    July 23, 2020 1:16 pm

    The change to ebay managed payments will cos me as a seller an extra 3% from my bottom line the only thing sellers can do is put up their prices, so who pays in the end the customer

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  • YOUR SO RIGHT , ITS NOT LIKE WE GET ANY POSTAGE MONEY , THE POST OFFICE DO , SORT IT OUT EBAY

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  • Nicholas Dobson
    August 23, 2020 8:24 pm

    $10 million is not (£7.7 billion)

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  • Guys, I was forced to get into the new system of payments and now, the eBay keeps my money up to 4 days! Yes! Previously, when somebody paid for any item, the money was on my PayPal account the same minute and I could use it. Now, eBay manages my money for a couple of days. I made a complaint about it and they replied, They are not a financial company and they dont do anything with the money but it takes 2 business days to process it. What a bullshit!
    Also the fees increased radically + vat so now they take around 15% _ various rates on different types.
    We need an alternative for eBay, that is too much.

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  • Can you change it back to accepting payments through PayPal after mistakenly going to this managed payments nonsense? I do not post my parcels till I have my money in the bank & I don’t think sellers want to wait 4 days for me to post their purchases. Also, they have taken way over 10% of my final purchase fee? Barely worth my while selling on here now!!

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  • Ebay will be lucky if it lasts that long the way it treats its sellers!

    And PayPal fees are reasonable it’s ebays fees that are extortionate.

    People don’t trust you anymore, they don’t trust the management and they don’t trust the search engine, unlike the old days when it had good management!!

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  • I agree, just sold an item for £154 and no trace in funds in PayPal. Spoke to a customer service rep at eBay who informed me that it was now being dealt with via there own managed payments. The fee was £20.01 which included eBay commission and a transaction fee which is really not much less than PayPal. The transaction took place on Thursday and the payment is still showing on Saturday as pending which is really not acceptable as when using PayPal the funds were available immediately. The eBay customer service rep told me that I could not use PayPal any more and if I changed back to PayPal I could not sell on eBay, which after looking into is not correct. I was also informed that the first transaction using this method of payment would take 4 days to clear into my bank account and that after that payments would be the same day, that frankly remains to be seen. I think in future I will probably sell using local methods instead if this is the manner in which ebay is going forward.

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  • looks like ebay are getting like amazon, tight with money and difficult to deal with. I wont be using either for much longer. They rely on sellers wanted to work hard to make some money, but what they dont realise is that we all need money quickly to run our small or large businesses. I believe other platforms will come along and supersede these large monsters. at least i hope so, unless they get their houses back in order.

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  • I am 76 years old, & buy at local Auctions/Car Boot Sales,(UK) & sell on E-Bay to supplement my Pension, & also keeps me busy(well it did before lockdown) but i hope to continue, i am not a great fan of change, my motto is if it ain,t broken then it doesn,t require fixing,i was quite happy with the way things were, its all crap for E-Bay to say they are doing it to give both Sellers & Buyers a “Better Experience” this is & always has been with E-Bay, about Profit margins,& Greed ie charging 10% on the postal costs, who pays this, Buyers ?? because i just charge more for postage, as for Pay_Pal i have never had a problem??when money from E-Bay Sales went into my account, & i requested it to go to my Bank Account, it was transferred in a matter of Seconds?? on about three occasions over the many years i have been with E-Bay, i have been forced to take a return, even though there was nothing wrong with the items, it was basically Buyer Remorse, which E-Bay say cannot be used by buyers to send an Item back “Bullshit??? 99.95% of the time E-Bay Side With The Buyer, i have been in touch with them (E-Bay) on numerous occasions, & told them that “Without Sellers There Would Be No Buyers” you may as well talk to a Brick Wall, because you would probably get more response

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  • DAVID CONNOLLY
    April 17, 2021 8:53 pm

    Agree with you 100%. PayPal has just done the same with me. And can’t get an explanation from them. But they have taken their fees and will get interest on MY MONEY for 6 months. I am like you extremely FURIOUS, LIVID.

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  • if you are selling small value items insist on payment in cash at the the same time as collection only that way you get the cash at the same time as the buyer gets and can check the goods are as described . if items are high value then dont sell on ebay with their rip off having done nothing fees, ther are plenty of other cost free selling options

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  • Margaret Lary
    June 30, 2021 2:21 pm

    Having read loads of comments on here , like others I am having a problem, told different reason each person who I talk, told me one thing and then something else. Had big problem re my bank details, in the end, contacted bank who helped me, the info given was wrong, so changed them for nothing. I have never had problem, not a big seller but think I will have to rethink now. It’s so frustrating

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  • This was formerⅼy known as PageRank, but Google no longer useѕ that term.

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  • As a buyer this new system seems perfect for frauds to rip people off and they do exist on ebay as i have dealt with them once or twice over the years and paypal was a fucking amazing protection for buyer and seller now its all on ebay i don’t trust i will be protected from the scum and feel their numbers will increase exponentially….would not want to be a seller on that platform dealing with the same issue….will try the system but if it screws me i am out and ebay looses a customer

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  • Can I trust you to refund my money once you get the deposit in your PayPal account

    Reply

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