PayPal shares dropped as much as 12% after-hours on Wednesday after eBay said it would be working with global payment company Adyen to process sales on the platform.
On the site, eBay customers will have the option to use Adyen but will have to go off site to pay with PayPal.
The two have been longtime partners so traders were concerned over the news, considering that Adyen is a rival of PayPal.
When eBay customers check out, they will have the option to stay on eBay and use Adyen’s services or leave the website and use PayPal.
One benefit is that Adyen will provide sellers on eBay reduced costs.
eBay recently reported in line earnings revealing $2.61 billion in revenue and EPS of 59 cents. PayPal reported their earnings on Wednesday, with revenue of $3.74 billion and EPS of 55 cents.
Disclaimer: We have no position in PayPal Holdings Inc. (NASDAQ: PYPL) nor eBay Inc. (NASDAQ: EBAY) and have not been compensated for this article.