PayPal and eBay Officially Split
It’s official–eBay and PayPal finally parted ways today. PayPal has been counting down to this moment since last Friday, when the company posted a Tweet saying:
— PayPal (@PayPal) July 16, 2015
PayPal’s debut market value is a whopping 1.4 times higher than eBay’s–$46.6 billion and $34 billion, respectively. This is due to PayPal having significantly stronger growth potential in the market, while eBay experiences heavier competition in the world of ecommerce.
eBay’s stability after the split has long been in question. PayPal has the option to expand its mobile wallet services to keep in line with current products like Apple Pay and the upcoming Google Pay. By comparison, eBay may be adversely affected by the development of Google’s “buy buttons,” allowing people to purchase products directly through their Google searches.
In a letter to their business customers, PayPal CEO Dan Schulman stated, “We’ve built an open digital payments platform that is designed to enable your customers to shop and pay how, when, and where they prefer – whether it’s in a store, on a mobile device, or on a web site. We hope to be a full-service payments partner as we work together to create innovative experiences that meet your customer’s needs and your company’s business goals.”
PayPal users can still reach eBay customer support by calling PayPal, and vice versa, but the companies are acting as two separate entities moving forward.