eBay has said PayPal will no longer be its preferred payments processor, according to BBC News.
In a blog post, eBay announced that users will be able to manage payments without leaving its website. The move is said to bring benefits for both sellers and purchasers.
The Dutch company Adyen will process payments for eBay, with customers able to use PayPal if they wish until at least 2020.
Shares in PayPal fell 7% in pre-market trading in the US on release of the news.
eBay said it wanted to transition to the new payment model as soon as possible within the terms of its contract with PayPal, which is set to run until mid-2020. The agreement ‘has not been extended and it will not be extended’ according to EBay.
Adyen, based in Amsterdam, processes payments for many big digital brands including Uber, Netflix and Easyjet. The company is growing very fast, moving from $14bn worth of transactions processed in 2013 to $50bn in 2015. Bloomberg has speculated that the company could issue a public offering n 2018.