EBay EBAY, -1.46% and PayPal PYPL, divided into two separate companies in July 2015, while maintaining a five-year enterprise agreement that would keep PayPal the e-commerce giant`s main payment partner. The companies announced in January 2018 that they would not renew the agreement after it expired, which took place over the weekend. EBay Inc. intends to roll out its new payment system “fairly quickly” after the formal end of its business agreement with PayPal Holdings Inc. One would therefore assume that there is a good chance that eBay will take a stake in Adyen in addition to the trade agreement, so that it can take advantage of the upward trend that this will create. At this time, the company does not say whether that is the case. One has to wonder if Adyen had to make financial concessions to win the business with an eBay-sized platform. eBay and PayPal today confirmed the signing of a previously announced agreement to offer PayPal as a payment option on eBay until July 2023. This new agreement builds on the payment partnership between companies to provide PayPal as a payment option for eBay`s new intermediate payments model. On the way to the weekend, eBay had 42,000 sellers using the new payment platform, and it had so far processed more than $4.7 billion in volume through the “managed payments” initiative, according to Alyssa Cutright, vice president of global payments on eBay, who said the company would act quickly to attract more onboard traders.
The company had another 250,000 sellers who arrived on the platform when the PayPal agreement expired, limiting the extent to which eBay could operate its own payment system. The old enterprise agreement limited eBay`s ability to geographically expand managed payments, and eBay had only conducted tests in the United States and Germany on small parts of the reseller base. The company is now focused on upgrading the new system in these markets, expanding to Canada, the United Kingdom and Australia, and ultimately moving elsewhere. PayPal became eBay`s leading payment services provider in 2003, a few months after eBay acquired the company in a $1.5 billion transaction. In July 2015, the two companies split into separate public companies and signed a five-year contract to maintain a close relationship until mid-2020. As previously announced, the new agreement between eBay and PayPal will ensure that PayPal is still available as a means of payment for buyers in the eBay market. PayPal as a means of payment includes payments via the PayPal payment button, as well as value-added services such as fraud detection and buyer protection. After the expiry of the existing agreement PayPal eBay in 2020, PayPal remains a payment option for EBay buyers, but will not be presented before debit and credit card options like today. PayPal will no longer be ready to charge card payments for eBay.
Nikola Corp.`s indefinite shares fell 15.2% in pre-stock trading Monday, after the hydrogen battery and electric vehicle maker said it signed a new delivery contract with General Motors Co.