Paypal Flees the Nest
The split between Paypal and its parent company, announced in September 2014, will come into effect today. It is thought that the spit was planned so Paypal can have more flexibility to compete with Apple Pay and Android Pay. The separation between the pair, who have been trading under the one company since 2002, came as a surprise to many and it is said that some of those on the board of eBay Inc were against the split. However, Paypal will continue to be Ebay’s main payment provider and the main difference in the aftermath of this split will be seen in the two company’s stock value. It is thought that eBay’s market value could drop more than $75bn to approximately $30bn, placing PayPal at a higher value than its parent company.
Strenuous times are expected for eBay which now must compete in a diversified online marketplace where competitors such as Etsy, Amazon and independent online marketplaces are thriving.