eBay to accept crypto-currency payments

The online auction platform eBay will soon open up to a new payment option. This time it will be crypto-currencies that will be accepted to pay for purchases. The decision is expected to contribute to the democratisation of crypto-assets and a necessary transformation effort for eBay.

FACTS

• Jamie Lannone, President and CEO of eBay, has revealed in an exclusive interview eBay's plans to integrate crypto-currencies as a means of payment for purchases on its platform.

• eBay says it currently handles around $85 billion in payment volume per year.

• The official announcement regarding the acceptance of crypto-currencies on eBay is expected to be made on 10 March during the group's investor day.

CHALLENGES

• Completing its diversification: PayPal separated from eBay in 2015 but actually left the group in 2018. Since then, the online sales platform has logically had to ensure the transition of its payment services and is working on enriching them worldwide. eBay already offers payment via Google or Apple Pay, or even via the BNPL payment service of Afterpay in Australia. The integration of crypto-currencies is therefore another step in this diversification strategy.

• Adapting to its new products: The auction site changed its policy last year to facilitate the sale of any merchandise, physical or digital. eBay's president noted that NFTs have become increasingly popular since they were introduced to the platform in May in the US.

• Attracting Millenials: More than new uses, eBay's decision to accept crypto-currencies is a reflection of its goal to position itself in the market. The platform is seeking to attract the youngest consumers from generation Z and the Millenials by providing them with a means of payment that they are increasingly using.

MARKET PERSPECTIVE

• eBay was positioning itself as a leader in crypto-currencies when, in 2014, the platform sought to integrate Bitcoin as a payment method. This strategy was eventually abandoned as too forward-thinking at the time.

• But since then, eBay has relaunched its work to integrate Bitcoin and other crypto-currencies. And the announcement of its President would come today to confirm this progress for the platform.