The eBay, PayPal split is only going to benefit eBay retailers, according to eBay Marketplace sellers and consultants. Now, eBay (NASDAQ:EBAY) will likely start accepting Apple Pay and other payment technologies, an impossible scenario when it was attached to PayPal.
"I can see the possibility of the shackles of the eBay, PayPal marriage taken off of the sellers," said John Lawson, CEO of 3rd Power Outlet, an eBay seller. EBay and PayPal have been limited in scope because of conflicts of interest, including eBay's requirement to use PayPal as its payment processor.
Accepting Apple Pay will likely boost eBay sellers' business, but PayPal would not previously allow that, according to Scot Wingo, CEO of ChannelAdvisor, which helps e-retailers sell on marketplaces like eBay and Amazon.
After the split, shoppers would also likely be allowed to pay via credit card on eBay, without creating a PayPal account. The number of customers choosing PayPal over credit and debit cards is very small, Lawson said.
Plus, eBay's payment system and checkout process are not always easy for shoppers to use, according to eBay seller Ben Hemminger, CEO of Fashionphile. EBay can now search out other payment technologies it couldn't use while it was connected to PayPal.
"It's going to be open to market forces now, instead of the monopolistic force that it was up to now," Hemminger said.
New payment options may bring former eBay shoppers worried about eBay's massive security breach, outages and other issues, back to the site, observers say.
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