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EBay switches payment options after axing credit card partnership – and it will be easier for millions of shoppers

AFTER dropping its partnership with a major credit card company, eBay has announced that it is offering a new payment option.

In the switch, eBay adopted a modern payment method that will be easier for its millions of shoppers.

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Online marketplace eBay announced a new partnership after dropping a popular credit card company[/caption]

eBay announced last month that it would no longer accept American Express as payment.

One week after dropping its partnership with American Express, the online marketplace teamed up with Venmo to offer its millions of daily customers a new payment method.

By integrating Venmo, eBay aimed to appeal to young and tech-savvy shoppers.

“The move to introduce new, popular and modern payment options aligns with the evolving preferences of today’s digital natives,” the company shared in a press release.

Venmo has over 90 million users and is popular among Gen Z and Millennials, who make up 28% of the mobile payment platform’s users.

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eBay’s Venmo integration will offer an easy payment method for customers[/caption]

“Given that over 60% of eBay volume comes from mobile devices, Venmo’s mobile platform is ideal for digitally savvy shoppers looking for a simple and fast checkout process,” the press release shared.

As of last month, US buyers on the eBay website and app can pay with their Venmo balance or their bank account, debit card, or credit card linked to their Venmo account. 

Once buyers link Venmo to their eBay accounts, they can “sail through checkout” without having to manually reenter their payment details in later transactions. 

Sellers on eBay will also benefit from the Venmo integration, as the availability of a “trusted, relevant, and convenient” way to pay in turn boosts sales.

AXING AMEX

In early June, eBay shared it would be dropping American Express as a payment method.


eBay customers worldwide will no longer be able to pay with American Express beginning on August 17.

The online marketplace told Fox Business the decision was due to the “unacceptably high fees American Express charges for processing credit card transactions.”

While credit card issuers such as Visa and Mastercard typically charge merchants processing fees between 1.5% and 2.5% to accept their credit cards, American Express charges between 2.5% and 3.5%, per Bankrate.

American Express argued that eBay’s decision would “limit customers’ payment choices and take away the service, security, and rewards that customers value when paying with American Express.”

The company also denied claims it charged eBay significantly higher fees than other credit card companies.

Retailers that don’t take American Express

In the US, the following retailers don’t accept American Express:

  • Costco
  • eBay (as of Aug 17)
  • Many smaller, independent retailers
  • Some insurance companies

“Our research tells us that in the US the cost of acceptance for American Express is comparable to what eBay pays for similar cards on other networks.”

Despite American Express’s clapback, eBay was not concerned about losing customers over the change.

“Based on internal research, we know that the vast majority of eBay customers are willing to use alternative payment options to continue enjoying buying and selling on our marketplace,” eBay told Fox Business.

The marketplace will continue to accept other credit and debit cards such as Visa, Mastercard, and Discover, as well as Google Pay, PayPal, and other payment methods.

In related news, Costco shoppers fume as the wholesale chain only accepts a certain credit card, leaving three alternatives.

Plus, Walmart shoppers bash the “biggest retailer in the world” for not offering a basic way to pay.

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