eBay Bans use of Propay, Paymate and Skrill; proves loyalty to Paypal
eBay users will not be able to make payments through Skrill, PropPay and Paymate from September 27, 2015.
EBay has announced that it will no longer be supporting Skrill, PropPay and Paymate. This change however will not affect the customers in the United Kingdom but are likely to affect the market in the United States.
The online marketplace recently sent an email to its sellers who use eBay’s online shopping services and told that that the American multinational e-commerce firm conducted a global review and found out that mostly PayPal is being used to make purchases on the online shopping website while the use of other payment methods which include PropPay, Paymate and Skrill are hardly being used on various eBay’s websites. According to an email by the firm, the company will no longer be accepting payments made by these cards as the company will be not supporting them. This rule will be passed on from September 27, 2015. The firm has asked the users to visit the payment method offered on Good Til’ cancelled listings.
The e-commerce firm gave a statement to Tamebay saying that the company has decided to retire Propay, Skrill and Paymate after conducting a worldwide review of the payment methods and said that hardly even 1% of the customers were using these cards and that the firm will give the users 30 days’ time to change their mode of payment method.
On the other hand, eBay store and PayPal are under a five year operating agreement, according to which eBay’s Gross merchandise volume has to process at least 80% of its payments through PayPal otherwise the company will have to pay penalties whereas if more than 80% of gross merchandise volume has been processed through PayPal, the online payment American company give eBay a bonus.
John Donahoe, the chief executive officer of eBay in an interview with the chief executive officer of Karen Webster, said that the simplest way of making a payment on eBay is through PayPal. He added further that the current customers using PayPal for purchases on eBay are 150 million, and mostly they have their credentials stored on the website to make the payments in one click.
While in other news, eBay’s stock went down by 0.51% when the trading commenced at $27.08 and reached up to $27.26 and ending at $27.11 with the volume of sharing soaring at 11,635,558. The firm had a weak trading session this week. In the short run, the shares were expected to be at $47.43, the price target that was estimated by 21 analysts. The standard deviation was valued at 17.9 with a higher estimate of $75 and a lower estimate of $27.