Both EBay and PayPal are shy from the spotlight. But they're still maturing and providing what they can to users. On Wednesday, the two announced an end to their relationship.
Instead of PayPal, EBay that announced a strong Q4 2017 profit, is partnering with Adyen, an online payments startup based in the Netherlands which provides back end payment services like point-of-sales (POS) systems and credit card processing.
EBay explained in a statement why it has decided to integrate Adyen as its main payment partner. According to the company, Adyen can provide a lower cost and more control of finances for its merchants.
It also boasts a huge clients, including the likes of Facebook, Spotify, Netflix, Uber, Groupon and LinkedIn.
The move is part of EBay's strategy to "transition to full payments intermediation," the company said.
After announcing the split from its long-time partner PayPal, EBay saw its share price surge 13.8 percent. And as for PayPal that processes roughty 13 percent of all EBay's payment, has its shares plunged by 8.1 percent on that announcement - decreasing its value by more than $100 billion - down sharply in U.S. extended trading on Wednesday.
Partnering with Adyen, allows EBay to use the startup's technology to give merchants a more centralized view of their data, as well as to manage and track all transactions and customer interactions directly from EBay. Adyen would also provide customers with a "greater choice" when checking out.
Because Adyen can process backend payment services for businesses using its technology, users do not necessarily interact with Adyen directly.
With PayPal, however, users must first sign up for a PayPal account and interact with its interface, before completing a transaction.
"We believe that we can offer a more seamless experience while giving buyers and sellers more choice for payment and payout options," said EBay Chief Executive Devin Wenig.
And because Adyen allows consumers to pay in 150 different currencies, EBay added that it would be able to expand its payment options into more regions around the globe.
Adyen CEO and co-founder Pieter van der Does said: "We are thrilled that EBay, one of the most successful e-commerce companies of all time, has chosen Adyen as its new, global payments processing partner. Adyen is uniquely positioned to meet the needs of high volume global marketplaces like EBay. We look forward to powering transactions on EBay, starting in North America, and supporting their continued global growth."
EBay continues allowing customers use PayPal as an option for checking out until July 2023.
Splitting up with its long-time partner, EBay said that PayPal would "remain an important partner." After all, PayPal saw this moment coming when it was spun out of EBay. To move on, the company has since been working to transform itself into a company which processes payments for other large companies and their customers.