Business

Ebay, PayPal Outline Plans After Split

Published

10 years ago

July 17, 2015

Oakland Post

This photo combination shows logos for eBay, left, and PayPal, outside the companies' corporate headquarters in San Jose, Calif. When eBay and PayPal split up on Friday, July 17, 2015, they'll face different challenges than they did as a combined company. (AP Photo/Marcio Jose Sanchez, Jeff Chiu)

(AP Photo/Marcio Jose Sanchez, Jeff Chiu)

Mae Anderson, ASSOCIATED PRESS

NASHVILLE, Tenn. (AP) — When eBay and PayPal split up on Friday, they’ll face different challenges than they did as a combined company.

E-commerce company eBay first said in September 2014 it would split off its payments unit PayPal, in order to focus the two companies on growing profits individually. Investors, including activist Carl Icahn, had lobbied for the movie.

Though the split happens Friday, PayPal starts trading on the Nasdaq under the “PYPL” ticker on Monday, while San Jose, California-based eBay will keep trading under the “EBAY” symbol.

As separate units, eBay faces stiff competition from Amazon and other online retailers that have gained market share from traditional brick-and-mortar stores. It also has to contend with the lingering effects from a cybersecurity breach and changes in Google’s search algorithms that led to fewer eBay results popping up in Google searches.

On the other hand, online payment system PayPal, which had long been eBay’s fastest-growing segment, will have to compete with mobile wallets like Apple and Android Pay and online payment offerings from Chinese e-commerce retailer Alibaba and other retailers.

In a call after the two units posted quarterly profit that topped Wall Street’s expectations, PayPal President Dan Schulman and eBay President Devin Wenig each outlined their plans for the two units following the split:
EBAY

EBay, which has been streamlining its business by selling some units, now is focusing on reinvigorating its marketplace business, which includes the e-commerce arm of eBay. It stumbled last year when it had to deal with a change in Google’s algorithms that made eBay products come up in search results less often.

On Thursday, Wenig said the company now is asking sellers to include more detailed product identifiers on their product listings, which seems to be helping search results.

Wenig said the company is also focusing on gaining traffic through social media. It was an early adapter of shoppable ads on Facebook and Pinterest and has increased efforts on Tumblr Instagram, Snapchat and Twitter’s Periscope to drive traffic and user growth.

“While still small relative to our more established channels, traffic from social channels is growing over 100 percent year-on-year in the U.S.,” Wenig said.

Wenig also reiterated eBay’s plan to focus on small- and medium-size merchants that make of 70 percent of the global retail market.

“Our absolute priority is to improve our competitiveness and drive more stable profitable growth over the long-term,” Wenig said.
PAYPAL

PayPal’s goal going forward is to get more merchants to accept its payments in stores. It also wants PayPal users to pay with the service two or three times a week rather than the current average of two or three times a month.

Meanwhile, Schulman, who will be CEO of PayPal after the split, would like PayPal users who typically use the payment system once or twice a month, to use it two or three times a week, like millennials use its Venmo app. The Venmo app is linked to a bank account or card and lets users pay friends with a text-like note.

Schulman said the company is making some progress. The Subway app powered by PayPal-owned Paydient is the No. 2 food and beverage app in the iOS app store and can be used in 30,000 stores. And Burger King is letting users pay with PayPal in 5,000 stores.

PayPal also plans to grow internationally via its acquisition of Xoom which lets users send money from the U.S. abroad.

“We believe our technology platform, global reach and trusted brand can move PayPal from being an occasional transaction to being an integral part of consumers’ financial lives,” Schulman said.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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OPINION: Your Voice and Vote Impact the Quality of Your Health Care

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare.

Published

2 weeks ago

May 19, 2025

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Rhonda M. Smith.

By Rhonda M. Smith, Special to California Black Media Partners

Shortly after last year’s election, I hopped into a Lyft and struck up a conversation with the driver. As we talked, the topic inevitably turned to politics. He confidently told me that he didn’t vote — not because he supported Donald Trump, but because he didn’t like Kamala Harris’ résumé. When I asked what exactly he didn’t like, he couldn’t specifically articulate his dislike or point to anything specific. In his words, he “just didn’t like her résumé.”

That moment really hit hard for me. As a Black woman, I’ve lived through enough election cycles to recognize how often uncertainty, misinformation, or political apathy keep people from voting, especially Black voters whose voices are historically left out of the conversation and whose health, economic security, and opportunities are directly impacted by the individual elected to office, and the legislative branches and political parties that push forth their agenda.

That conversation with the Lyft driver reflects a troubling surge in fear-driven politics across our country. We’ve seen White House executive orders gut federal programs meant to help our most vulnerable populations and policies that systematically exclude or harm Black and underserved communities.

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare.

Medicaid, called Medi-Cal in California, doesn’t just cover care. It protects individuals and families from medical debt, keeps rural hospitals open, creates jobs, and helps our communities thrive. Simply put; Medicaid is a lifeline for 1 in 5 Black Americans. For many, it’s the only thing standing between them and a medical emergency they can’t afford, especially with the skyrocketing costs of health care. The proposed cuts mean up to 7.2 million Black Americans could lose their healthcare coverage, making it harder for them to receive timely, life-saving care. Cuts to Medicaid would also result in fewer prenatal visits, delayed cancer screenings, unfilled prescriptions, and closures of community clinics. When healthcare is inaccessible or unaffordable, it doesn’t just harm individuals, it weakens entire communities and widens inequities.

The reality is Black Americans already face disproportionately higher rates of poorer health outcomes. Our life expectancy is nearly five years shorter in comparison to White Americans. Black pregnant people are 3.6 times more likely to die during pregnancy or postpartum than their white counterparts.

These policies don’t happen in a vacuum. They are determined by who holds power and who shows up to vote. Showing up amplifies our voices. Taking action and exercising our right to vote is how we express our power.

I urge you to start today. Call your representatives, on both sides of the aisle, and demand they protect Medicaid (Medi-Cal), the Affordable Care Act (Covered CA), and access to food assistance programs, maternal health resources, mental health services, and protect our basic freedoms and human rights. Stay informed, talk to your neighbors and register to vote.

About the Author

Rhonda M. Smith is the Executive Director of the California Black Health Network, a statewide nonprofit dedicated to advancing health equity for all Black Californians.