eBay is turning its back on the US giant which was part of the online marketplace, PayPal. Instead, it will be turning to a highly valued fintech startup from Europe as the main payments processor of the company.
The said move is a huge vote of confidence for Adyen, the startup, and it will fuel speculation about an IPO of the Dutch company which boasts a so-called unicorn valuation of over $1bn.
Supported by numerous well-known venture companies, Adyen also considers the likes of Uber, Facebook, Spotify, and Netflix among the clients of the company. It is anticipated to go public fairly soon, even though the firm’s executives indicated at the end of the past year that a public listing would not likely to take place this year.
eBay will transition away to Adyen from PayPal over the next couple of years, making the former the default option for its buyers by 2021. However, the latter will remain to be an option until 2023. The Silicon Valley company said that the switch said would reduce costs for sellers on the platform.
In 2015, PayPal was spun off from eBay. The online marketplace had acquired it in 2002. The shares in PayPal dropped by as much as 15 percent during after-hours trading in the United States after the said news surfaced.