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Could A Paypal Tie-Up With Amazon Be On The Cards?

eBay & PayPal Split

(IT-NEWSWIRE.COM, May 12, 2015 ) London, UK -- One of the frustrations of purchasing on online market giants Amazon for some consumers is perhaps the inability to make payments through PayPal. That could now change as PayPal is set to split from online auction and market place eBay.

The split between PayPal and eBay is scheduled to take place during the second half of 2015. The move will see PayPal being able to do business with other companies, including Amazon.

By becoming available on Amazon PayPal would enjoy commercial benefits. It would also make things much more convenient for PayPal account holders making purchases on Amazon.

PayPal's arrival as a payment option would also be a tremendous benefit to companies selling their products on Amazon. A spokesperson for the company Boom, maker of the Shock-2 Hybrid Protection Case for iPhone 6 & 6 Plus on Amazon, said: "Amazon is very much our primary market place and should they decide to offer customers additional payment options such as PayPal it would be a great bonus for us and other sellers in attracting further sales through Amazon. However I don't see this as a possibility at this time."

While some kind of a link-up between PayPal and Amazon would appear to offer many benefits to all parties the big question is whether we can expect a formal relation such as existed between PayPal and eBay. For the time being at least the answer is "No".

As part of the "pre-divorce" settlement between PayPal and eBay there will be restrictions on both parties. Current agreements will run for five years and there will be a transitional period of one year as well. During that period PayPal will not be able to develop an alternative on-line market place and eBay will not be allowed develop its own payment system. PayPal will also handle at least 80% of eBay payments during this transitional period.

Despite these restrictions PayPal will be able to build new business relationships including with Amazon. Should a mutual agreement be brokered between the two companies could this lead to a formal tie-up?

While there would be obvious advantages for a commercial marriage between PayPal and Amazon there are strong doubts that this will happen. One of these is that Amazon has already launched its own payment system Amazon Payments - capable of rivalling PayPal.

That should not mean PayPal being unable to work with Amazon, especially now that it is freeing itself from eBay. But do not expect the two giants to join together in a formal link- up anytime soon.

About Boom Products UK

From phone accessories to clothing and fitness equipment Boom Products supports an active lifestyle with thoughtful products and emphatic design.

Boom Products UK



Source: EmailWire.Com


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