eBay is continuing on its path to centralize payments on its multi-national marketplace. The company has announced that Germany is the second country to be initiated into its recent push for managed payments.
In September 2018, eBay launch the managed payment program in the United States. Today, the company says that it has transitioned thousands of sellers and reached $636 million as of the end of second quarter 2019. Last month, a number of German powersellers noted that the platform was beginning to require enrollment in the program, heralding this move.
Managed payments are a big change for the platform that has long relied on external payment processing partners, with PayPal a favorite. With eBay managing end-to-end payment processing, it’s making the strong case for both buyers and sellers.
For buyers, eBay’s managed payment system is designed to help provide a sense of safety and reduce consumer reluctance. Some buyers on the platform might be hesitant to enter their credit card information on a third-party payment site. Offering an official and centralized hub for payments without leaving the site should provide a sense of comfort.
Additionally, eBay is rolling out its managed payments in Germany by accepting credit card, debit card, Apple Pay, GooglePay, and PayPal. A streamlined checkout experience also means that there are fewer moments a customer might abandon a transaction.
For sellers, eBay hopes that centralizing its payment process makes things smoother. Instead of payments coming from buyers, eBay will fully act as a middle-man and pay out to sellers directly. This also means that manual transfers to bank accounts are no longer necessary. eBay will automatically deposit earnings.
Best of all, the new managed payment process bakes in claim and chargeback protection for sellers. eBay claims that a combination of simplified pricing and invoicing, lower fees, and a centralized hub for managing business on the platform will make the process well worth it for anyone who buys or sells on the marketplace.