Online auction powerhouse eBay’s stocks hit their lowest point in 2013 this week amid rumors of a “digital wallet” tax that MasterCard may impose on its subsidiary PayPal.
MasterCard’s suggestion may come as part of a larger plan by the major U.S. networks to tax PayPal and others for “rid[ing] for free” on the rails of the established networks.
“Payment networks are taking the gloves off,” Bill Carcache and Brian Nowak, analysts at Nomura Equity Research, wrote in a note to investors on Monday. “The incumbents will do everything in their power to prevent PayPal from riding on their rails without extracting a toll.”
Ebay’s stock value sat at $51.10 at close on Tuesday.
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