eBay revealed it soon plans to launch its first digital wallet where customers can use proceeds from their sales to make purchases or pay their selling fees during today’s investor day.
The company’s press announcement is vague on details, so we are waiting on the full transcript of the event to learn more about this service which is tied to eBay Managed Payments.
But it seems this is not exactly a PayPal-like solution as the announcement only specifies users could use the funds to make other purchases on the eBay platform.
While it seems this news has given the stock a little boost during mid-day trading, it’s important to note that this isn’t particularly a new revelation.
In late 2020 eBay CEO Jamie Iannone already hinted at the 43rd NASDAQ investor conference that bringing some form of digital wallet will be a future feature of its eBay Managed Payments eco-system once the company completes the transition away from PayPal in all of its markets.
In 2020, Iannone said, “… once we have a wallet, once we have the integrated payments, both for buyers and sellers, it just opens up the opportunity for eBay to do new things on the payment side that we’ve never been able to do before, when we’ve only managed the commerce and the payments have been handled separately. And that excites me too, because as we complete this transition and get into 2022, it gives us opportunities to just do more with the customer experience and with both our sellers and our buyers.”
eBay Managed Payments is now available in all of eBay’s global markets. But the service continues to be maligned by long-time sellers that still don’t think it measures up to the convenience PayPal offered.
If this digital wallet idea will help convince those sellers will depend on the details and implementation of the program.
Another item highlighted during today’s investor day event was that the company will introduce eBay Vault in the US next quarter.
eBay Vault is a 31 thousand square foot, secure storage facility and digital marketplace for trading cards and collectibles, and the company plans to expand this service into luxury goods.
Once an item is in the eBay Vault, customers know their valuables are secure and “instant sale” becomes the new reality. Ownership can transfer from seller to buyer in a matter of seconds – without the need to re-authenticate, re-package or ship the item anywhere.
Keeping high-value inventory within the eBay ecosystem is significant for both buyers and sellers the company explained. Furthermore, it said the Vault will make other planned features, like fractionalization and live commerce, possible for a wider audience.
Within a few years, eBay expects the Vault will hold up to $3 billion in assets and it claims that will make it one of the largest stores of non-governmental assets in the world.
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