E-commerce giant eBay announced Wednesday that it will be replacing PayPal with Adyen as its primary payments provider.
EBay explained that its decision to integrate Adyen's payment processor would result in lower costs and more control for its merchants.
PayPal posted better-than-expected results on Wednesday, but this was enshrouded by the news of eBay looking to eventually replace it. Adyen was last valued at $2.3 billion following an investment round led by Iconiq Capital, and has since been encircled by rumors of going public. PayPal posted better-than-expected results that same day, but this was enshrouded by the news of eBay looking to eventually replace it. It sent shares of PayPal — a company with a market value of more than $100 billion — down sharply in U.S. extended trading Wednesday. PayPal's stock continued to plummet Thursday, while shares of eBay rose near a record high.