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EBay to Ditch PayPal for Dutch Payment Processor Adyen
- DrScump 9y ago(Autoplay video) I wonder when eBay will change their rules that currently state that you must offer Paypal and cannot mention other payment options (including cash) in a listing.
- megy 9y agoIt is not that way in oz, it was ruled illegal.
- quadrangle 9y agoI quit eBay (and failed to get back to a comparable experience, unfortunately) the day (years ago) that they stopped allowing people to sell and specify payment options that didn't have the extra Paypal fee. Forcing everyone to use Paypal and pay the fee was obviously corrupt.
- tyingq 9y agoI'm all for a competitor in this space. PayPal is very cocky and stagnant.
- lugg 9y agoHeh, I felt PayPal has been playing catch up for years now. Cocky maybe, certainly not stagnant.
- tyingq 9y ago>certainly not stagnant Hmm. Maybe I'm misinformed? What kind of innovative things have they done recently? As a PayPal merchant, the UI is still a clunky mix of old and new, and weird session errors and logging in twice, etc. We just barely got past SHA1 certs.
- digi_owl 9y agoAnd very pushy about having me open an account with them just because i want to buy something. It has reached the point that i think twice about doing business if the store only offer Paypal.
- JackNichelson 9y agoGood luck with that lol
- dbuder 9y agoGood riddance, PayPal are awful to deal with.
- Someone1234 9y agoIf anyone else, like me, thought eBay owned PayPal: > On October 3, 2002, PayPal became a wholly owned subsidiary of eBay. On September 30, 2014, eBay Inc. announced the divestiture of PayPal as an independent company, which was completed on July 20, 2015.
- dboreham 9y agoYes. The Masters of the Universe decided that there was "value to be unlocked" by spinning off PayPal. Or at least...someone's spreadsheet said there was value to be unlocked..
- 2xlbuds 9y agoCarl Icahn to be exact
- deleted 9y ago[deleted]
- jonknee 9y agoAnd there actually was... PayPal itself is still (after this news) worth more than both eBay and PayPal were as a single company. Add both together and it was an obvious win.
- gscott 9y agoStrange that since eBay probably owns a lot of PayPal stock that they would try to tank Paypal. Maybe eBay sold their Paypal stock holdings ahead of this change.
- thebiglebrewski 9y agoDoes anyone here use Adyen? We use Stripe but are starting to consider options that may increase conversions.
- toptal 9y agoAdyen will be better if you have more consumer cards vs. business cards being charged. Nearly 100% chance of this, otherwise Stripe may win.
- toomuchtodo 9y agoIs there middleware that can route transactions based on criteria to various payment processors?
- toptal 9y agoThere definitely is not. Good idea though, however the margins would be razor thin. Possibly too thin.
- foota 9y agoSeems like it would be best in this case to offer a fixed rate?
- dangrossman 9y agoGoogle "payment routing". There definitely is middleware you can buy to route payments to different processors. I've built my own for my business on top of Spreedly. I'm not sure what you think the issue would be with margins; the routing service doesn't have any direct costs other than servers.
- jaredtking 9y agoMy company, Invoiced, supports routing payments across different processors/merchant accounts. There are many interesting use cases for it within the billing space beyond just cutting transaction costs. One common use case we see is trust accounting for lawyers. The gist of it is that trust and operating funds are stored in separate bank accounts, depending on the context of the bill. It’s a legal requirement that can result in disbarment if not followed properly. Another scenario we run into is with insurance billing where policy payments need to go to different bank accounts or even be handled by a different processor, depending on the policy. I know of other software systems that can do payment routing as well.
- analog31 9y agoHere's what puzzles me. I have looked into Stripe, and just browsed the Adyen webpage. Both of those services seem to require you to maintain your own "active" server that can run server side code. PayPal seems to be unique in being able to take payments from a passive web page, because the customer conducts their transaction at PP's website. This is why I continue to use PP for my tiny little business (without eBay). Even though I consider myself reasonably tech savvy, I don't trust myself to maintain a website that is compatible with everybody's browser, phone, etc., and that guarantees the security of their personal data. Moving to another payment processor requires a quantum leap in technology that I'd rather not keep up with. I'd rather design another gizmo. From time to time I look around for an alternative to PP, and haven't found one yet. I suspect that many small-time eBay sellers may be in the same boat.
- slobotron 9y agoBest way to integrate with stripe is to use their checkout button to get a token instead of receiving CC info directly. Iirc, still need to use backend code to do the actual charge, but at least you never see any sensitive info.
- cortesoft 9y agoRight, but the poster is saying they don't want to run a server AT ALL.
- arca_vorago 9y agoThen what are they running their website on? This is a perfect example of the infectious nature of the word cloud, people say the word cloud as if there's no server still running it! Oh noes, I have to run php code stripe has done all the work on and provided to me! Scary!
- Fogest 9y agoCouldn't you run a more static based site if you don't have to run some PHP code though?
- cyberferret 9y agoI've never heard of Adyen here in Australia before this. I assume they are far more Europe/US oriented? I assume they will be rolling out the new integration world wide, so that it will become more ubiquitous? I believe Paypal has a local office in Aus, so I presume Adyen will be setting up local offices in most countries? (I also noticed on the video that it is pronounced "Adi-an" where I first thought "Ad-yen" which makes them sound more like an ad wholesaler than a payment processor.)
- notaspider 9y agoI was pronouncing it Ay-den before reading this...
- deleted 9y ago[deleted]
- dmix 9y agoI doubt Adyen is well known among North Americans either (the first market being rolled out for ebay). Ayden is used by Uber and Netflix and some other big names but that's mostly hidden in the background as they are integrated directly into the platforms. Unlike Paypal which has an obvious branded layer for all transactional layers. I'm curious what the integration with Ebay will look like. Will users be redirected to their Ayden accounts ala Paypal or will it be branded via Ebay?
- saurabhtandon 9y agoI think the term eBay is using is intermediated payments. I think as a buyer, you would pay to eBay and eBay would pay to seller. So should be frictionless.
- saurabhtandon 9y agoSince Uber and Netflix are using Ayden in the background I am guessing they can handle global payments. Most of us never knew what payment provider did these companies use so far.
- helb 9y ago
- amix 9y agoWonder why they didn’t go with Stripe, but with an European competitor? This is great for the European tech scene.
- NicoJuicy 9y agoStripe "is"/"was" also European :)
- adventured 9y agoStripe has never been European, it was always headquartered and operated out of the US. It'd be like claiming that SpaceX is South African. https://www.startupgrind.com/blog/the-collison-brothers-and-story-behind-the-founding-of-stripe/ https://www.startupgrind.com/blog/the-collison-brothers-and-...
- pulse7 9y agoAnd that Amazon is Portuguese...
- loooooooooooool 9y agoNão entendi essa...
- traek 9y ago? As far as I can tell, the founders are Irish but the company has always been American.
- NicoJuicy 9y agoOw ok. Perhaps because they where Irish, I remembered it differently
- whoisjuan 9y agoAdyen is older and it seems to have a larger banking footprint when compared to Stripe. Also, they seem to have a lot of experience in several international markets besides Europe.
- remir 9y agoNever heard of Adyen, but it's great to see more Euro companies compete against SV.
- buildbuildbuild 9y agoPotentially a great move for eBay to reign in processing fees and to consolidate the dispute resolution process within their own platform. A large pain point for many eBay users has been Paypal's opaque dispute process. (I admit to bias: I lost ~$5,000 in Paypal balance while in college due to Paypal siding with a dishonest international buyer) For those of you contemplating Adyen vs. Stripe: Adyen is much more "bare metal." Think more like a modern Authorize.net. Nobody comes close to Stripe's turnkey developer-friendliness.
- lachyg 9y ago(I work at Stripe.) Glad to hear on the developer friendliness! If there are ways we can continue to improve on that front, please shoot me a note: lachy@stripe.com I'm curious though what you mean when you say Adyen is much more "bare metal" than Stripe. We don't typically talk too much publicly about our underlying infrastructure (our goal is to abstract away that [hopefully] unnecessary complexity), but we do strive to be as close to the bare metal as possible. (We're directly connected to all of the major card brands, and have "acquiring licenses" in numerous markets.)
- master-litty 9y agoI interpreted that as a positive nod towards Stripe. In other words, Adyen and Stripe provide equivalent functionality but Adyen requires more work to adopt.
- lachyg 9y agoI wasn't exactly sure which direction to read it :-) We often get questions around our underlying infrastructure and how we process payments (this is what I work on at Stripe!), so that bias is probably affecting my read...
- buildbuildbuild 9y agoMeant as a positive nod: Stripe is to Heroku as Adyen is to renting a dedicated server. With Stripe I don't have to worry about implementing a billion APIs or being PCI compliant unless I want to. Basically, great work. But for larger companies ready for deeper optimizations, especially on the pricing side, "bare metal" merchant services will always have their allure.
- deleted 9y ago[deleted]
- astura 9y agoPrevious discussion: https://news.ycombinator.com/item?id=16280553 https://news.ycombinator.com/item?id=16280553
- berkeleyjunk 9y agoNa na na na Na na na na Hey hey hey Goodbye
- dang 9y agoCould you please not post unsubstantive comments here? https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- xstartup 9y agoStripe/Braintree are a lot better than PayPal. PayPal will never take your processing history into consideration if their algorithms decide that your account is connected to some account with past violations. This happened when my developer used his API keys on our production resulting in our account with 1M+ revenue/2 years (very few chargebacks if any) of operation banned. As a small startup, it was a death sentence for our business, finding another processor at high volume is difficult when you've no history to show!
- mattmaroon 9y agoBraintree is owned by PayPal
- mdnormy 9y agoBut the brand name matters. My previous company selling online product to typical non-tech audience, and majority US customer insist on Paypal.
- thirdsun 9y agoMy guess is it's even more popular outside the US, or anywhere where credit cards aren't that common - like europe. We link our banking account to Paypal and use it to have instant payments (and fulfillment) without credit cards. You can't expect people to own credit cards over here.
- sleepychu 9y agoNot sure if UK is an outlier here but credit cards are the norm for us.
- iagovar 9y agoAlmost every payment processor accept debit cards, which is widely used in europe.
- freeflight 9y ago
- parito 9y agoOne of the bigger drawbacks of Adyen vs Stripe, although we wanted to work with them a lot, is, they require a crazy reserve (in the millions) if your model is subscription based. The logic behind it from them is, that they must be able to refund all your customers in case you go bankrupt, and you have subscribers left hanging without full-filled service they paid in advance for. Although I get the logic behind it, not one other PSP requires such a huge reserve, therefore we decided not to work with them. Todays payments world is v competitive and players like checkout.com and many others are v aggresive trying to disrupt stripe's dominance in this area
- ftoo 9y agoWouldn’t they simply require a reserve that is proportional to the amount you’re charging for the recurring payment?
- parito 9y agoUsually most PSP's do have some reserve rule, like keeping the 5% up to an X amount of sum, but with Adyen their team calculated the X amount to be in the millions - not one PSP (and we worked with all of them) had this.
- ftoo 9y agoSo it was still percentage based? I’m a bit confused from your phrasing. Sounds like the problem was that 5% of X could end up being millions, because it had a high ceiling? That doesn’t sound so bad.
- xfour 9y agoAlso, when talking to them they were stuck on requiring photos of a passport as a requirement for the recipient of the payment if I remember right. In the U.S. That's a non-starter as many people don't have passports and even if they did wouldn't be used to providing them in a business setting, so we ultimately passed.
- 9y ago
- mark-r 9y agoWhen Ebay first started requiring Paypal, it made sense - Paypal was clearly the frontrunner for online payments and Ebay's homegrown effort was a pale comparison. Also Ebay was a real powerhouse that could move the needle with a decision like that. Today I feel like Paypal has a lot more traction than Ebay, and this is going to be a big flop for them. As a consumer I don't want to sign up for yet another payment service.
- edwinjm 9y agoI think the advantage of Adyen is that you don't need a new account. It supports payment processors that are used all over the world.
- Hamcha 9y agoThis has its own disadvantages. My biggest reason for preferring Paypal to Stripe or other systems is that my Paypal account is linked to my bank account, which means I don't have to recharge my debit card (and pay the charge fee) for each purchase. Account-less systems can't run the proper verification to allow for that
- diogenescynic 9y agoPayPal has working capital programs for small merchants. That’s a huge benefit people overlook. This is also a relatively small part of PayPal’s business and the rest of their business is growing rapidly. I think this will hurt eBay more than anything.
- Marazan 9y agoAbsolutely 100% did not see that coming.
- emilfihlman 9y agoNooooo, oh good, PayPal is available till 2023.
- YTGRK 9y agohttps://youtu.be/I2l8xkjTUh4 https://youtu.be/I2l8xkjTUh4
- jchw 9y agoThey didn't "ditch" PayPal, at least not according to the e-mail I saw. They merely made it a non-default option. It's not like you can't still use PayPal.