In September 2014, eBay announced plans to split eBay together with PayPal. In a recent SEC filing, eBay confirmed that a newly formed corporation named PayPal Holdings, Inc. (“PayPal”) volition convey over the businesses that brand upward eBay’s payments segment. eBay, the existing publicly traded corporation, volition hold to operate its marketplaces business.
The separation, which volition render electrical flow eBay stockholders alongside equity ownership inward both eBay together with PayPal, volition move effected yesteryear agency of a pro rata distribution of 100 pct of the outstanding shares of PayPal mutual stock to holders of eBay mutual stock.
“As ii distinct publicly traded corporations, eBay together with PayPal volition move ameliorate positioned to capitalize on pregnant growth opportunities together with focus their resources on their respective businesses together with strategic priorities,” reads the eBay announcement. “As independent companies, nosotros hold off eBay together with PayPal volition move sharper together with stronger, together with to a greater extent than focused together with competitive every bit leading, standalone companies inward their respective markets. eBay together with PayPal every bit good volition produce goodness from additional flexibility together with agility to pursue novel marketplace together with partnership opportunities.”
“Following the distribution of all of the outstanding shares of PayPal mutual stock yesteryear eBay Inc. to its stockholders, PayPal volition move an independent, publicly traded companionship focused on making money run ameliorate for people together with businesses around the world,” says Daniel H. Schulman, President together with CEO-Designee of PayPal Holdings. “The access to together with crusade of money is an of import marketplace that affects the lives of nearly everyone. Our mission is to increment our relevance for consumers, merchants, friends together with menage unit of measurement to access together with motion their money anywhere inward the world, anytime, on whatsoever platform together with through whatsoever device (e.g., mobile, tablets, personal computers or wearables).”
In the SEC filing, eBay together with PayPal confirm that merchants alongside a touchstone PayPal concern human relationship every bit good tin integrate alongside Braintree to laid out accepting bitcoin payments.
Payment processor Braintree, which was acquired yesteryear eBay for USD $800 i G 1000 inward September 2013, volition move purpose of PayPal Holdings nether the novel structure. Braintree permits merchants to convey bitcoin payments seamlessly inward partnership alongside Coinbase, allowing their customers to pay alongside bitcoin at i time together with securely on whatsoever device without manually transferring bitcoin or scanning QR codes. The Braintree bitcoin payments service, currently inward world beta, has naught transaction fees on the showtime $1 i G 1000 inward bitcoin sales together with a 1 pct fee for cashing out bitcoin to a banking company account.
“Sell your products together with services inward the currency of your selection together with allow your customers pay alongside Bitcoin,” reads Braintree’s invitation to its clients. “We convey attention of the conversion, transfer, together with transaction reporting that fits inward alongside your existing Braintree workflow. Bitcoin transactions are confirmed inward less than a few seconds, eliminating chargebacks, which reduces your exposure to online fraud.”
Besides bitcoin, PayPal allows merchants to convey Apple Pay together with Venmo payments via Braintree.
The separation of eBay together with PayPal, which volition convey house inward 2015 (no exact appointment is given inward the SEC filing) volition allow the ii companies to to a greater extent than effectively pursue distinct operating priorities together with strategies together with opportunities for long-term growth together with profitability. In particular, PayPal’s management volition move able to focus solely on its payments business, together with relish “increased flexibility to pursue novel partnership together with strategic opportunities that may quest hold previously been unavailable for strategic or other reasons.”
It seems probable that the increased flexibility together with exclusive focus on online payments could final result inward PayPal taking a to a greater extent than active role inward the Bitcoin ecosystem.