Reserve Bank tackles PayPal

Reserve Bank tackles PayPal

Summary: The Reserve Bank of Australia today said it would shortly hold meetings with eBay subsidiary PayPal over the online auctiongiant's attempt to force sellers to offer PayPal as a payment option.

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The Reserve Bank of Australia (RBA) today said it would shortly hold meetings with eBay subsidiary PayPal over the online auction giant's attempt to force sellers to offer PayPal as a payment option.

In April, eBay notified the competition regulator that it intended to force Australians to make online payments only through PayPal. eBay reversed the decision shortly afterwards following pressure from the regulator and other groups. However, since that time eBay has required sellers to offer PayPal as one option for payment by buyers.

"Over recent months, the board has received a number of comments on the no-surcharge and no-steering rules that apply to payments using the PayPal system, as well as the mandated acceptance of PayPal on eBay's auction site," the bank's payment systems board wrote in a statement today.

The statement stemmed from resolutions from a recent meeting of the board on 15 August.

The bank said where such rules had existed in other payment systems, it had encouraged their removal, on the grounds that they could diminish competition in the payments system.

"Consistent with this, the Bank will shortly be holding discussions with PayPal with a view to seeking the removal of these rules," the RBA said.

Topics: E-Commerce, Tech Industry

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6 comments
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  • Well done!

    Congratulations to those who lobbied the RBA. This is really good news. It's about time PayPal was given a slap for treating consumers with contempt.

    But there is still a lot more to do to make eBay/PayPal accountable to consumers. PayPal still refuses to sign the EFT Code of Conduct.
    anonymous
  • Read and weep, eBay!!!

    Perhaps now maybe Simon Smith will stop claiming that only a noisy vocal minority are opposed to eBay forcing PayPal. Congratulations to all who lobbied the RBA en masse. This proves the campaign is working. Keep up the good work and do not rest until every government regulator has gone through eBay like a dose of salts.
    anonymous
  • ebay

    eBay's biggest challenge is Amazon

    Amazon just launched a checkout service that will compete with eBay's PayPal.

    And Amazon's had some success; shoppers are flocking to its site, while visits to eBay have fallen over the last year.

    Analysts fear the competition between the sites, combined with the economic downturn, could bruise eBay's business and batter its share price. Tim Boyd, an analyst with American Technology Research, is going so far as to advise investors to sell eBay and predicts its shares, down 38 percent from a high of $40.60 last October, could fall another 20 percent this year.

    "EBay is hemorrhaging market share to competitors such as Amazon," Boyd wrote in a research note, noting that the value of the goods sold on eBay's marketplace had increased only 8 percent compared to the previous year.

    In contrast, Amazon saw a comparable figure, its gross sales, vault by 41 percent
    anonymous
  • Move to Amazon

    I too have moved to Amazon I have not brought or sold anything on eBay since they started this rubbish. eBay tends to be full of trash sellers seeking retail price levels. If I want to pay retail prices I will drive to the shops.
    anonymous
  • Management 101

    Ian,

    The problem with eBay is that they have grown too big.

    They made their name as a marketplace where people could sell the stuff they no longer wanted and get something for it, rather than simply throw it out. They were an online garage sale if you will. This was great as there were no other service like them out there and they filled a niche.

    Now a days they are well over saturation point, and as they grow popular, the price difference between online prices and retail prices are coming down... And so in order to grow they have to pander and cater to all comers.

    And one of the things about being the dominant player in a saturated market is; THERE IS NO ROOM FOR GROWTH. And as we know the executive's bonuses depend entirely on beating wall street profit expectations. Beat wall street's expectations and the streets are paved with sexual favours for you. If you meet or fall shy of those expectations, your stock price takes a hammering.

    And thus the executives have no where to turn but to extract all they can out of their existing customers. You see this time and time again. eBay and to a lesser extent SAP are the latest to exhibit this shortsightedness.
    anonymous
  • auctions8.com Worth A Look

    eBay and PayPal have become unbearable for so many reasons. Some sellers are regrouping at a new international auctions site www.auctions8.com & starting fresh where first 1000 to register get everything is free for life.

    www.auctions8.com is owned and managed by determined & hard working group of members to become a permanent and safe home for all.

    Site is for genuine sellers only

    DO NOT PAY ANY FEES. EVER AGAIN!
    anonymous