Money multiplier stocks of the day: PayPal Holdings, Inc. (PYPL)

Josep Lago  AFP  Getty Images
Josep Lago AFP Getty Images

02 February, 2018

This means Adyen will begin processing all transactions on the site in place of PayPal.

For the current Fiscal Quarter, 3 analysts on average are expecting earnings of $0.98 per share. PayPal Holdings Inc would still remain a payment option as eBay expects the "transition to full payments intermediation will be a multi-year journey". A new deal, however, will see the relationship as the primary payment processor cease.

PayPal is used by other merchants on the internet so while they're losing a significant partner, they aren't dead. eBay sales accounted for 13% of the payments PayPal handled in the fourth quarter which is an actual decline from previous years.

Shares of the San Jose, California-based e-commerce company climbed almost 9 percent to a record high in after-hours trading on Wednesday.

Ebay has planned a "small scale" expansion to start in the second half of 2018, this will aim to help smaller sellers and buyers transition to the new system, this will grow throughout 2019. After that, eBay said PayPal will still remain an important partner.

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The biggest change for buyers is that they will be able to stay within the eBay ecosystem for checkout rather than being directed to PayPal before completing a purchase.

Jennison Associates LLC raised its holdings in Paypal Holdings Inc (NASDAQ:PYPL) by 117.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The company said that by bringing much of its payments service into its own operations, it will add $500 million in operating earnings after the deal with PayPal comes to a close.

The announcement surprised some investors, who expected the companies to announce an extension to their operating agreement. The news from eBay came as PayPal reported quarterly earnings that beat Wall Street estimates but gave a disappointing outlook for the first quarter. They will have the option of paying through Adyen and if they decide to pay through PayPal, they will have to exit eBay and then do it. It is, however, a move which may end up benefiting consumers though. The good news is you'll still be able to do so on eBay.

At eBay, the move is being billed as a way to take more control over the critical checkout experience as other giant online shopping destinations like Amazon and Alibaba have, while giving more payment options to eBay shoppers.

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