Ebay Spinning off Paypal as separate company

[babylofty]

http://money.cnn.com/2014/09/30/technology/ebay-paypal/index.html?iid=HP_LN

It seemed like Paypal and Ebay were just starting to "click" (being able to pay for Ebay items within Ebay was INCREDIBLY convenient (and I hate giving them credit!)) so I'm curious to see if that will continue, or if we will have to log into Paypal separately like we used to.

OR, Ebay could be setting up plans to expand methods of payment, e.g. like Apple Pay.  Not so much as competition for Paypal, but as a convenience to users.  I don't think they could have done that when they owned Paypal.

I'm very curious to see what the results of the spin-off are. 

[Marigold]

I heard about this on NPR this morning.  I haven't read anything about it yet, but my first thought is that this is some kind of ploy to charge a higher percentage for every transaction.  When you combine the two as one system use together they both feel pressure to keep fees lower because we add them together.  But if they are individuals, both can charge one higher fee.  I foresee Paypal increasing its charges by quite a bit to match Ebay.  Ebay might add on a little too since they know we will pay Paypals extra 3% (or whatever it is now) when we used that through them. 

I could be totally off base.

[ponylady]

I will most definitely have to read a bit more about it but from briefly looking through it, sounds to me like they are more worried about them becoming independent publicly traded companies.  It would provide shareholders with more targeted investment opportunities.

http://www.businessinsider.com/ebay-to-separate-paypal-and-ebay-2014-9

[RockinPrettyBeats]

This news is sudden to me and seems to be the opposite of the constant intermingling of Paypal and Ebay while them pretending one doesn't have to do with the other.

I'm not sure what to think of this. I can only hope this opens up Ebay to more payment options and competition from other online companies.

[babylofty]

I find the timing a little coincidental - this is coming on the heels of ApplePay, so I don't doubt that with the hysteria (sorry, android fan here) of the iPhone6 and ApplePay, Ebay wants to open itself to more options.

But, as Ponylady suggested, it may just be a stock market thing and I'm overthinking things (as usual!)

[ponylady]

OH good point babylofty, never even thought of that.

*raises hand* android fan here too!