eBay plans to start growing the management of its payments throughout the world beginning on Monday (July 20). The digital commerce company started down the path to handling the “end-to-end payments process” in 2018 on its marketplace platform and has reported success with Germany and U.S. launches, according to an announcement.
eBay President and CEO Jamie Iannone said in the announcement, "Today marks a significant milestone for eBay on our journey toward a technology-led reimagination of our marketplace and provides a simpler and [more] seamless experience for our buyers and sellers around the world.”
Iannone continued, "We have already seen incredible momentum with managed payments, and we expect it to deliver $2 billion in revenue and $500 million of operating income in 2022."
eBay manages payments for almost 42,000 merchants and has processed $4.7 billion GMV in Germany and the U.S. as of the conclusion of Q2. The company said most merchants can foresee savings in managed payments. eBay claims to have saved merchants $17 million in transaction fees.
eBay said that managing payments will make the process of selling and receiving payments easier, while providing merchants with “an easier way to manage their business.” The company also said it can provide purchasers with greater optionality and flexibility in payment options via managed payments.
eBay plans to continue adding new functionalities and bolstering features, including new choices for seller financing as well as additional bank payment selections.
The company said it will make managed payments active in Canada, U.K. and Australia in the weeks to come.
In June, eBay increased its Q2 earnings forecast due to better results than forecasted amid the coronavirus. The company said it forecasts second-quarter revenues in the neighborhood of $2.75 billion to $2.8 billion and adjusted earnings per share of $1.02 to $1.06, in contrast to its April guidance of 73 cents to 80 cents and revenue from $2.38 billion to $2.48 billion.