eBay No Longer Allows 2 Non-PayPal Payment Processors After Divorce From eBay

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(Liz Wise)

eBay and PayPal have now completed their divorce, and one of the terms that they agreed to is that eBay still has to process a large number of its payments using PayPal. That could be the reason why eBay is eliminating competitors ProPay and Skrill from the payment options for shoppers and for sellers.

eCommerceBytes points out that the timing is interesting, since PayPal also happened to raise fees for sellers who process more than $3,000 per month in payments using the service

In their e-mail to sellers about the change, eBay said that the two services had very few users, which means that perhaps letting buyers use them isn’t worth the bother for the company anymore. However, eBay does have an incentive to make sure that as many online payments as possible come from PayPal.

That’s part of the terms of the companies’ split: 80% of payments through the site must come through PayPal, or eBay will owe its former partner money. “eBay will be incentivized to grow new users and increase PayPal penetration rates through referral services and penetration rate payments,” the company explained in a statement earlier this year. eBay aso receives a bonus from PayPal if more than 80% of sales come through PayPal.

eBay Bans Sellers from Offering PayPal Rivals [eCommerceBytes]

by Laura Northrup via Consumerist