🔄 eBay Drops American Express
On June 13, eBay revealed it will no longer accept American Express. The decision came after the company cited high fees charged by Amex. While most credit card companies charge fees between 1.5% and 2.5%, Amex fees range from 2.5% to 3.5%. This move aims to reduce transaction costs for eBay and its users.
📱 Embracing Venmo
Just a week later, eBay announced it will start accepting Venmo, a popular digital payment tool among young Americans. Venmo boasts 90M users, with 28% aged between 18 and 29. eBay's new payment option aims to attract younger customers by offering a convenient and familiar payment method.
🤝 History with PayPal
eBay's relationship with Venmo ties back to its history with PayPal, Venmo's parent company. eBay bought PayPal in 2002 but split in 2015. In 2021, eBay ended its partnership with PayPal, allowing users to buy with PayPal but directing payments to sellers' bank accounts. Now, linking Venmo to eBay simplifies the payment process even further.
💬 Simplifying Payments
eBay's blog post highlights the ease of using Venmo: "Once buyers link their Venmo account to their eBay account, they can sail through checkout without manually entering payment details." This move aims to streamline the buying process and enhance user experience, attracting more young users to the platform.
Do you prefer using Venmo or credit cards for online purchases?
