PayPal and eBay to Part Ways

eBay is going to spin off PayPal as a separate company, in doing so both will see more growth as they become more focused on their individual needs. The former American Express CEO is joining eBay to take charge of PayPal as President and CEO-designee, this will help streamline the companies increasing adoption of online payments when they both emerge as two separate entities in 2015.eBay_Bags

PayPal are currently responsible for 1 in 6 dollars spent online and has seen a positive  and steady increase in growth, with profits almost as high as those of eBay despite having a smaller profit margin. Both companies will focus on the “enormous opportunities” which will come from the end of the 12 year long partnership as PayPal aim to be a leader in online payments whilst eBay will focus more on e-commerce, although it may prove somewhat difficult as the two companies are virtually synonymous with each other and PayPal will have to re-establish its purpose online.eBay_revenue_segment_Chart

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