Adyen is a global payments processing company based in the Netherlands and founded in 2006. The company acts as a payment gateway, payment service providers and offers risk management / local acquiring.
Adyen focuses “on building a frictionless, state-of-the-art infrastructure that connects directly to card schemes and payment methods around the world, enabling businesses to accept payments and grow revenue online and in store in a single system.”
Many well-known companies are already taking advantage of the payment technology that Adyen offers such as Netflix, Spotify and Uber.
It is expected that eBay’s transition over to their new payment processor will begin mid-2018 in North America, with the full changeover set to have spread across the whole of eBay’s marketplace customers by 2021.
However, PayPal will be an optional method of payment for eBay customers up until mid-2023.
eBay’s reasoning behind the switch was to reduce costs, not just for eBay but also for their customers - as it is expected that most sellers will also see a reduction in payment processing fees. The change will also allow customers to have more control over tracking their transactions on the eBay site as opposed to being transferred to a separate site (PayPal). eBay also believes it will be able to reach more countries using Adyen, who are used in 150 countries, despite PayPal being accepted in 190 countries.
Although eBay account for 13% of PayPals payments volume, the end of the eBay – PayPal contract means that PayPal can now offer the same quality of service to other marketplace providers.