The big news last week was how Paypal allows US merchant to accept Bitcoin as a payment method thanks to Paypal Payment Hub. This story may very well take an interesting twist, as there might be plans to split eBay and Paypal into two different companies.
Earlier today, eBay’s board of directors and CEO revealed their intentions to split the marketplace business into separately traded public companies by the middle of next year. This plan is in stark contrast with arguments we have heard all year on why it is best to keep eBay and Paypal are best left together as one company.
While a lot of Bitcoin enthusiasts were looking forward to spending their Bitcoin on eBay purchases through Paypal, those plans may never come to fruition. Do keep in mind that splitting Paypal and eBay into two different companies is by no means a done deal, but only a plan which has been laid out.
“As we’ve continued our annual assessment, looking forward three to five years about how we can best position eBay and PayPal, we think the competitive position and the competitive environment of commerce and payments are going through accelerating change. That creates new sets of opportunities and challenges for both eBay and PayPal and (we believe) that operating independently will give eBay and PayPal focused strategic flexibility and an ability to move quickly and decisively in this changing environment.”
– John Donahoe – CEO of eBay
In an interview with CNBC, Mr. Donahoe continued : “When you look forward, eBay will be less than 15 percent of Paypal’s business three years from now and we can achieve many of the benefits of the synergies through arms-length commercial relationships.”
As a result of splitting up eBay and Paypal, John Donahoe will no longer be CEO of eBay. A new CEO has already been named as Devin Wenig, currently the president of eBay Marketplaces, will take over. A CEO for Paypal has also been named in the form of Dan Schulman, who is currently the president of American Express’s Enterprise Growth Group.
While all of this sounds interesting, it opens up a lot of opportunities for Bitcoin as well. Judging from the information we have at this point, splitting eBay and Paypal into two separate companies might be a good thing for Bitcoin and its mainstream adoption.
With more and more people and businesses exploring e-commerce as a way to increase sales, Paypal still remains a beloved payment method for many users. And the Bitcoin integration is a done deal, regardless of whether eBay and Paypal will split or not.
However, with eBay potentially no longer in the picture, there are other marketplaces that could take its place by partnering up with Paypal, and indirectly Bitcoin. It is impossible to tell what the future has in store, but interesting times are definitely on the horizon.