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EBay Puts The Brakes On PayPal Rival Payment Systems

0524 ebay 630x420EBay will no longer allow its sellers to offer PayPal rival services ProPay, Skrill and Paymate as payment options. Sellers using the services will have at least 30 days to change to accepted payment methods.

The marketplace first announced the change in an email sent to sellers on September 27: “Over the course of this year, eBay has conducted a global review of the use of payment methods on its web sites. Given the very low usage of ProPay and Skrill on eBay’s various sites, from the week of Sept. 27, 2015, these payment methods will no longer be supported. Please revise the payment methods offered on Good ‘Til Cancelled listings to avoid them being taken down 30 days from their initial listing date.”

An eBay statement indicated that Paymate would be excluded from the marketplace as well, noting that “far less than 1% of users” purchase items via the payment service.

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The announcement occurred on the same day that PayPal raised fees for merchants that process more than $3,000 per month in payments — marking a 32% increase for higher volume sellers.

As part of the July 2015 split between eBay and Paypal, eBay agreed to ensure that 80% of gross merchandise sales through the marketplace are routed through PayPal for the next five years. If this percentage is not reached, eBay will owe PayPal a restitution. On the other hand, eBay will receive a bonus from PayPal if sales exceed the agreed-upon percentage.

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