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eBay and Paypal

The honeymoon is over: eBay and PayPal will split in 2015

For the longest time, eBay and PayPal have been synonymous entities, but even the strongest bonds sometimes have to come to an end. That is exactly what is going to happen in 2015 when auction giant, eBay, lets PayPal go and operate as its own separate business so that it can better focus their efforts against the growing threat of Apple Pay, Square and other upcoming payment schemes.

As a result of all these changes, eBay’s CEO and CFO will step down, but remain as board members, leaving the door open for Devin Wenig to take the reins, and Dan Schulman of American Express will be moving over as the new CEO of PayPal in 2015. This comes after months of pressure to cut away PayPal, and although eBay has previously fought tooth and nail to stop that from happening, it appears the inevitable has happened, though it appears that this arrangement could be best for both companies – “Separation will create sharper strategic focus and better position each business to capitalize on those growth opportunities as independent companies”. That sounds pretty good to me.

What do you think about the end of an era, the split of eBay and PayPal? Let us know your thoughts in the comments below.

Source: Business Wire via engadget

About Stephen Yuen

I'm an engineer and a gamer with a penchant for technology and words that I barely understand. I love my games, Android and all things cool and nerdy, and occasionally, I write about them.
  • khsharpe

    a little more detail would be good. Just how does it help eBay to seperate from a payment system that is trusted and used world wide by people irrespective of their mobile OS or even if they don’t have a mobile phone. Apple Pay will be used only by those with apple mobile devices, PayPal can be used by anyone. Twelve month ago Android had about 80% of the global mobile phone market, iOS share was shrinking to about 16% and Win OS was rising to about 4%. I realise iOS had approximately 40% of the US market at that time, but i still dont understand how Apple Pay can be a threat globally to PayPal. Can anyone explain the rationale for eBay’s decision?

    • Flowingwind

      Ebay was hacked in May. This might have something to do with the split.

      “Hackers obtain name, address, date of birth, telephone number, email address and password of 233 million peopleThe online auction site eBay has admitted that the name, address, date of birth, telephone number, email address and encrypted password of every eBay account holder worldwide – 233 million people – have been obtained by hackers, in one of the world’s largest ever online security breaches.”

      If Ebay gets hacked again after the split the hacker would be after credit card info.

      http://www.thedailybeast.com/articles/2014/05/22/every-ebay-account-holder-worldwide-has-been-hacked-company-says.html

  • Guest

    Ebay was hacked in May. This might have something to do with the split.

    “Hackers obtain name, address, date of birth, telephone number, email address and password of 233 million peopleThe online auction site eBay has admitted that the name, address, date of birth, telephone number, email address and encrypted password of every eBay account holder worldwide – 233 million people – have been obtained by hackers, in one of the world’s largest ever online security breaches.”

    If Ebay gets hacked again after the split the hacker would be after credit card info.

    http://www.thedailybeast.com/articles/2014/05/22/every-ebay-account-holder-worldwide-has-been-hacked-company-says.html