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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27 Comments. Leave new

  • I hope that reduces buyers fees!

    Reply
  • 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 🙂

      Reply
      • 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??

        Reply
      • 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.

        Reply
      • Avatar
        lorraine morris
        November 9, 2020 3:07 pm

        Totally agree with you

        Reply
      • Agreed! I just left eBay after 21 years

        Reply
  • 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.

    Reply
  • 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 🙂

    Reply
  • 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.

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

    Reply
  • 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. ?.

    Reply
  • 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.

    Reply
  • Avatar
    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.

    Reply
  • 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.

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

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

    Reply
  • Avatar
    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

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

    Reply
  • Avatar
    Nicholas Dobson
    August 23, 2020 8:24 pm

    $10 million is not (£7.7 billion)

    Reply
  • 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.

    Reply

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