Is eBay mobilizing to spin-off Paypal?
I’ve noticed that Paypal’s service has deteriorated over the past 12 months. That, combined with eBay’s April announcement makes me wonder if eBay is going to eliminate all of the distractions and start focusing on the online auction business again. eBay says, “Beginning in the second quarter of 2009, we will start directing eBay buyers to resolve disputes on eBay instead of on PayPal.”
Given the economy and the plight of financial institutions in a low interest rate environment, eBay may be looking to unload PayPal to focus on its core business. Or, perhaps eBay really does care about its customers. (Glimmer of Hope)
Here’s a clue - if you take money from people then you should welcome the opportunity to work with them on all of their issues. eBay’s and Paypal’s “ten-foot pole” arrangement, targeted at keeping customers at a distance while you grow rich from their money wasn’t going to work for long term. Maybe Ebay woke up and realized this. Or maybe they are just throwing things at the wall hoping that something will stick.