EBay Ditches Paypal For Dutch Company Adyen
Ringo | On 02, Feb 2018
Paypal is now receiving a taste of its own medicine after it was ditched by eBay for a Dutch company.
Paypal share immediately dropped 12% in after-hours trading on Wednesday after eBay announced that Adyen will be processing orders without leaving eBay website.
People can still use Paypal until 2023.
The news came after Paypal reported quarterly earnings that beat Wall Street estimate but gave a disappointing outlook for the first quarter.
Dan Schulman, the Paypal CEO said the change in eBay relationship is still “very manageable” and it’s actually in line with the new strategy of the world’s biggest payment processor.
Ebay accounts for the 13% of the company’s activities.
In 2015, Paypal started to spin out of eBay and has been used by larger companies like Google, Apple, Mastercard, Visa and many more. It has also been used by individuals for sending money to family and friends.
After it expanded, there are some industries that were terminated by Paypal, including those in the pay-per-click business models.