After eBay Inc Split, PayPal Might Be A Payment Option For Amazon.com, Inc. (AMZN)


Last week, eBay Inc (NASDAQ:EBAY) said that PayPal would be free to strike any understanding with any like-minded companies once it is split, which is expected in the second half of the current year. This week, news emerges that Amazon.com, Inc. (NASDAQ:AMZN) could rope in PayPal as a payment option after it is split from the parent company. This should be music to the ears of online shoppers, who might be pining for such an option.

Agreements

Though there are multiple agreements between eBay Inc (NASDAQ:EBAY) and PayPal, the parent company cleared the air that it was free to strike any agreement with third parties. As a result, it would be free from the clutches of eBay and couldengage themselves in holding discussions with anyone, including Amazon.com, Inc. (NASDAQ:AMZN). Therefore, more than the online auctioneer, its PayPal might be the biggest beneficiary of the split.

The inclusion of PayPal to the online retailer’s marketplace would, undoubtedly, be a good thing for both the companies, apart from the convenience of the users. Despite restrictions, it also means that there will be more payment options coming in the way of eBay. The online auctioneer indicated that both the firms would be better placed with individual capability to seek different alliances.

More Might Follow

Companies like Alibaba Group Holding Ltd (NYSE:BABA) might be waiting for the split so that it could also talk to PayPal as one more option to its customers. Just one announcement by Amazon.com, Inc. (NASDAQ:AMZN), that it signed a deal with PayPal, might trigger others to follow suit. It does not matter whether they have their own payment options, like Alipay of Alibaba Group Holding.

Though there is no guarantee that PayPal might align with Amazon.com, Inc. (NASDAQ:AMZN) or Alibaba Group Holding Ltd (NYSE:BABA), there is a strong possibility because of the growing demand. PayPal also will have to counter the rival payment services, such as Apple Pay and Google Wallet from Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOGL) respectively.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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