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Buyers will still be able to use PayPal on the site until at least 2023.

EBay said its partnership with Adyen's technology would enable sellers to manage and track all transactions and customer interactions via eBay. It predicted processing costs would be lower.

It will provide buyers with more choice and an ‘integrated checkout experience’ – allowing them to remain within the eBay site, rather than being directed to a separate PayPal screen to compel a purchase.

Adyen, based in the Netherlands, is a much smaller online payment company than PayPal but it has some major customers including Uber and Netflix.

Transition period

Ebay has an operating agreement with PayPal (its subsidiary from 2002-15) until 2020 but said it will start the transition in payments processing later this year on a small scale in North America.

It expects the majority of its customers will be using the new partner by 2021 adding that the operating agreement with PayPal “has not been extended and it will not be extended”.

Sellers will not need to change their accounts with eBay but will be required to complete a number of steps in order to continue selling on eBay.

More details about this process will be available closer to the time but customer are invited to contact paymentsinfo@ebay.com to give feedback and ask questions.