How does eBay’s new payment service Adyen work, when will it launch and why is PayPal being replaced?
eBay's agreement with PayPal, which it bought in 2002, will officially end on 2020
ONLINE shopping titan eBay is to replace PayPal with the lesser known Adyen as its payment system.
PayPal's shares took a 10 per cent nosedive following the announcement in February 2018 - but who is the European firm ousting the financial giant?
What is Adyen and how does it work?
Netherlands-based Adyen is an online payment company valued at around $2.3billion (£1.6billion).
With offices in Sao Paulo, London and Berlin (to name a few), its clients can take advantage of electronic payments, credit and debit cards and even local banking methods.
Speaking of clients: which brought in $178million (£125million) in 2016 compared to PayPal's (£1.4billion).
It does not charge for a monthly subscription or set-up, only a processing fee plus commission per transaction.
eBay will begin the transition in the second half of this year and hopes most of its customers will be using Adyenby 2021, .
But shoppers will have an option to use the off-platform PayPal as a payment option until 2023.
"Adyen is uniquely positioned to meet the needs of high volume global marketplaces like eBay," said Adyen CEO and co-founder Pieter van der Does.
How have eBay and PayPal been performing lately?
PayPal shares predictably fell to £53.87 after the announcement.
eBay, which has assets of around £16.7billion, brought in £1.8billion in revenue in its last quarter.