PayPal Holdings’s shares fell as much as 12 percent in after-hours trading on Wednesday after former parent company eBay said it had signed up a new primary payment processor, Adyen.
eBay has opted for Adyen as it allows its users to remain on the eBay website when checking out.
PayPal said eBay shoppers will still be able to select PayPal as a form of payment until at least July 2023. EBay accounts for roughly 13 percent of total payments processed by PayPal.
PayPal was the primary payment processor of eBay since 2015 and has been working to transform itself from a company that mainly processed payments for its parent company to one that processes payments for other large companies and their customers, as well as for individuals paying family and friends.
This new strategic direction by PayPal has led to partnerships with numerous large financial institutions and big technology companies including Alphabet’s Google, Apple, Mastercard, Visa and JPMorgan Chase.
