eBay (NASDAQ:EBAY), the popular e-commerce and marketplace platform, is expanding its in-house payments service to several new countries as it continues its push to offer a direct payment service globally. eBay payments are now available in Italy, Spain and France, according to a note from the tech company.
eBay started the project in the US followed by an expansion into Germany last year. This was followed by payment services in the UK, Canada and Australia beginning earlier this year.
Alyssa Cutright, Vice President of Global Payments at eBay, said that by managing the payment process eBay is simplifying and unifying the experience for customers by providing a one stop service. Of course, it gives eBay the chance to lessen cost or generate fees for the company.
eBay offers a portfolio of payment choices including PayPal, Apple Pay, credit cards, Google Pay etc. An agreement with PayPal expired last July which apparently has opened up an opportunity to further manage payments in house.
eBay reports that at the end of Q2, it had already enrolled over 255,000 sellers in managed payments globally. Since launch, eBay has managed payments for nearly 42,000 sellers and processed $4.7 billion in GMV.
The company continues to be on track with its rollout of managed payments, transitioning a majority of sellers on its marketplace into the experience in 2021 and aiming to complete the process in 2022.
eBay states that managed payments are expected to deliver $2 billion in revenue and $500 million in operating income in 2022.
eBay is executing on a theme that is best described as Fintech everywhere. As all financial services become digitized, features like payments, transfers etc. will be seamlessly integrated and available on demand. Managing payments in-house simply makes sense and will help eBay generate more revenue. Perhaps a better question is what other types of financial services will eBay offer in the future.