New eBay payment
eBay gains access to payment data
Q1 is always an exciting time for e-commerce, and eBay has recently presented some changes that will come into effect this year. A new type of payment processing has been introduced which sees eBay managing payments themselves rather than through a third party. Back when PayPal was a wholly owned subsidiary by eBay, it made sense for them to be so closely linked together. Since eBay and PayPal parted ways in 2015, they have still provided payment services to eBay sellers. eBay will now be setting up their payment processing through ADYEN. ADYEN manages payments for a number of different well-known companies like Airbnb and Netflix, and are a direct competitor with Paypal. This might benefit both customers and sellers as more choice of payment method will more than likely increase the volume of sales on the platform.
Will it be still possible to pay via PayPal on eBay?
eBay managing payments just means they will now offer more choice. By working with ADYEN they will be able to offer many more payment methods alongside their existing ones like Paypal and credit or debit card payments. The change this will initiate for sellers is that they will now get their fund deposited directly into their bank accounts, rather than sent to the Paypal account they have registered with their eBay account. eBay have told US sellers on managed payments this will happen automatically every two days.
How will this affect the transparency of user information on eBay?
By stopping the need for sellers to have an eBay account to be able to receive payments, buyers payment information no longer needs to be sent to a third-party. Although Paypal can still be used, payment processing will be done by eBay themselves going forward. This would suggest that user info will be more secure, as it is travelling through less channels. eBay have already stated that sellers will not have visibility on which payment method was used by the buyer. It seems like managed payments will operate on a very “need to know” basis when it comes to seller and buyer information.
(eBay payment fee calculator - Source: eBay.com)
What seller information will I be able to see with the new changes?
At the moment, it has not been made clear how much information a standard buyer will receive, or how much information a brand or company whose product is subject to being counterfeit on the platform can see. Seller contact information can only be acquired currently with a takedown of a counterfeit product.
If you want more information on how we can help you with takedowns of counterfeit products and digital brand protection, please visit our website. We can also partner with different payment providers and assist in terminating accounts.