PayPal, eBay to Stay Interdependent for Five Years After Split

Advertisement
By Reuters | Updated: 10 April 2015 09:45 IST
PayPal, eBay Inc's electronic payments division, said the two firms had agreed that eBay would not reduce the volume of transactions it channels through PayPal, while continuing to get better rates for its merchants for five years after the two split.

PayPal is slated to be separated from eBay's marketplace division in the second half of this year, creating a publicly traded company, which some analysts say will be worth $40 billion.

eBay has agreed to ensure it will channel 80 percent of its online gross merchandise sales via PayPal, as it does now, for the next five years, PayPal said in a regulatory filing on Thursday.

The two companies also agreed to pay each other a commission if the percentage of marketplace sales rose or fell above that mark.

Advertisement

PayPal, for its part, said it agreed to continue charging eBay merchants less than it does other merchants, which would mean that "PayPal rates for eBay merchants will remain largely consistent with today's pricing relationship".

Advertisement

The terms of the agreement also prohibit eBay from forming its own payment service and PayPal from starting its own marketplace.

© Thomson Reuters 2015

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Internet, PayPal, eBay
Advertisement

Related Stories

Popular Mobile Brands
  1. How to Spot Comet SWAN During Its Close Flyby of Earth
  1. NASA Experiment Shows Martian Ice Could Preserve Signs of Ancient Life
  2. MIT Detects Traces of a Lost ‘Proto Earth’ Deep Beneath Our Planet’s Surface
  3. Astronomers Detect Heavy Water in Planet-Forming Disk Around Young Star
  4. Global Projects Aim to Save Sinking Cities From Rising Seas and Climate Change
  5. NASA Confirms Brightening Comet SWAN Could Be Visible With Binoculars: When and Where to See It
  6. We Live in Time OTT Release: When, Where to Watch the Andrew Garfield and Florence Pugh Romance
  7. Imbam Is Now Streaming Online: Know Everything About This Deepak Parambol Starrer Malayali Drama
  8. Mysterious Asteroid Impact Found in Australia, But the Crater is Missing
  9. Thanal Comes to OTT: Everything You Need to Know About This Tamil Action Thriller
  10. Madam Sengupta Is Now Streaming: Know Where to Watch This Bangla Crime Thriller
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.