In September 2014, eBay announced that they would be splitting with PayPal, in which the latter would be spun off into a separate company and traded on the stock markets under its own name, and now it has been made official as the split has been announced today. Starting Monday, eBay and PayPal will traded on the NASDAQ as two separate companies – EBAY & PYPL resepctively.
According to a blog post written by eBay’s John Donahoe, “eBay and PayPal are two great, special businesses. And as each prepares for its next chapter as an independent company, I could not be prouder of our employees and what they have accomplished. Going forward, eBay and PayPal will each have a sharper focus and greater flexibility to pursue future success in their respective markets.”
The split comes on the heels of mobile payment services from competing companies that are starting to gain more ground, namely in the form of Apple Pay and the recently announced Android Pay. While this split might be noteworthy to investors in the company, things are not expected to change for consumers.
PayPal will continue to serve as the primary (and we suppose to a certain extent preferred) payment provider for eBay, so if you do a lot of shopping and trading on eBay, this should not affect you.