Can Broader Checkout Options Help eBay Beat Amazon?



Increasing choice for shoppers

eBay (EBAY) has added Google’s (GOOGL) Google Pay as a checkout option for people shopping on its marketplace. The company says the move is meant to increase choice and flexibility for customers. According to eBay, young people are increasingly shopping online, and they expect a streamlined payments experience. Therefore, eBay is moving to provide its customers with an array of payment options so that they can complete a purchase without having to leave its marketplace. Google Pay joins Apple’s Apple Pay, PayPal, and other payment services that eBay is supporting on its marketplace. eBay began supporting Google Pay this month.

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Amazon doesn’t support PayPal payments

In providing its customers with a broad spectrum of checkout options, eBay is hoping to gain an edge over its archival Amazon (AMZN), which at the moment supports a limited range of payment options on its marketplace. People can use cards or Amazon’s native digital wallet called Amazon Pay to complete purchases on Amazon’s marketplace. But Amazon currently doesn’t support many third-party payment services like PayPal.

eBay replacing PayPal

eBay’s addition of Google Pay as a checkout option on its marketplace comes as the company is shifting from PayPal (PYPL) as its primary payments processor. In the next few years, eBay will be handling payment transactions on its marketplace mostly on its own, a change the company has touted as important for simplifying transactions and lowering costs for its merchants.

eBay’s marketplace is used by more than 179 million consumers worldwide. Amazon serves more than 300 million consumers globally, while Alibaba (BABA) exited the fourth quarter with 636 million consumers on its marketplace in China, its domestic market.


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