Ebay to split off PayPal business
 

The online auction site eBay is planning to split off its payments system PayPal into a separate company.

It expects to do that in the second half of 2015.

EBay's chief executive John Donahoe said: "A thorough strategic review... shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively."

PayPal's revenues are growing at 19% a year, twice as quickly as eBay's.

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It's obvious that paypal is going to stay around but ebay is possible to fail.

ebay is crazy with their fees same as paypal, recently sold a $300 product on ebay + $40 shipping their fees were $35 for ebay and almost $15 for paypal this is beyond crazy

I got burned trying to have reserve prices on auctions.
I would owe $40-$80 dollars to ebay and didn't even make the sale.

16% in transaction/commission fees?

These days Paypal "feels" pretty secure....... now I could be completely way off base and maybe its a pile of crap but the old horror story days seem distant past.

Right now with 19% growth YOY, id love to have shares in Paypal.

Do I buy em in IPO or on the market? dilemma.

Ebay takes 10% of the sale and Paypal is 3% I believe.

It depends where you live.
In Switzerland Paypal takes a whopping 3.4%, while in Germany they "only" take 1.9%.

Of course they are. With Apple's Apple Pay announcement, and the other wallets that are coming, Paypal is a liability to the Ebay business. If the payments space hits the skids for them, they need to be able to distance themselves from it fast. Consumers in the payment space are only as loyal as the convenience it provides. Paypal is in a very uncomfortable position with what's coming ahead in the payments space.

eBay sucks these days. It was great when it was primarily a site to connect individuals who wanted to buy or sell items, but once they started pushing themselves as a marketplace for larger businesses (and changing the rules to be less friendly to everyone else), it went downhill.

ebay has shit on it's sellers for far too long. Their fees are rediculous and they freeze your paypal funds no questions asked and buyers are ever increasingly taking advantage of that. I personally increase the price of my ebay items at least 15% higher (including bumping shipping) than I sell elsewhere so if the buyer is smart enough they save themselves a bundle by searching outside of ebay and MANY do. I was making a nice mortgage note to them in fees every month last year. This year with 4-5 times inventory I'm averaging a cable bill in fees.

As far as Paypal is concerned I've used them since pretty much the beginning. I run my entire online and offline (including POS) through them and I know for a fact they are always increasing their earnings off me.