EBay drops PayPal as payments platform

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EBay is set to stop using PayPal as its primary form of payments processing.

The online auction site will be switching to Dutch firm Adyen as it looks to simplify the way buyers and sellers make and receive payments using the site.

The move will allow shoppers to pay for items without having to leave eBay's own site, rather than having to navigate to PayPal's domain.

Sellers will also benefit from lower processing costs, the company said in a blog post announcing the decision, as well as providing a central location to manage their business, and a much wider reach to new customers.

"As a leading global commerce company, eBay believes that payments intermediation is strategically important to improve the buyer and seller experience on its platform and will enable the company to further innovate on behalf of its customers," the company added.

"In a rapidly changing and competitive ecommerce landscape, shoppers expect to be able to both shop and checkout on the site on which they transact."

PayPal, which was spun off from eBay back in 2015, will continue to be offered as a way to pay on the site until July 2023.

Adyen, which was only set up in 2006, currently offers payment processing in more than 150 currencies and over 200 methods of payments, with the likes of Uber and Netflix among its other major customers.