Difference Between eBay and PayPal

eBay vs PayPal

Difference between eBay and PayPal is that eBay is considered to be an online marketplace open for everybody worldwide and PayPal is considered as an electronic mode of money transfers that support online businesses. Currently, both these services are acting together, but they have planned to split in the second half of 2015. In the current setup, as soon as a customer selects a product from eBay, the money can be transferred using PayPal. This article analyzes these two services and highlights the difference between eBay and PayPal.

What is eBay?

eBay Inc. is considered as an American multinational corporation and e-commerce company, head quartered in USA, that provides consumer-to-consumer (C2C) sales services via Internet. eBay is considered as the world’s largest online marketplace, where sellers and buyers meet and involve in trade.

In an eBay, a seller lists all the items available, which may include items from antique to vehicles, sporting goods and books. Then the seller chooses to accept the bids placed for the items or offers the Buy It Now option, which allows the buyers to purchase the items at a fixed rate or price.

In an online auction, usually, the bidding starts when the seller specifies a price, which remains for a certain period. Then the buyers place bids on them. As the bidding closes, the buyer who placed the highest bid wins. In a Buy It Now listing scenario, the first buyer who is willing to pay the seller’s price will receive the product.

What is Pay Pal?

PayPal, founded in 1998, can be considered as an international e-commerce business which allows payments and money transfers to be made through the Internet. Online money transfers serve as an electronic mode of doing payments instead of the traditional paper methods such as cheques and money orders.

PayPal is a secure service that enables the customers to make the payments without mentioning the financial information. In order to ensure the privacy and risks associated with fraud, PayPal uses the latest anti-fraud technologies and data encryption methods.

PayPal was acquired by the eBay in October 2002 and, since then, both are working together to provide a quality service for their customers who are involved in online trade. PayPal is acting as the online payment service integrated with the eBay platform. However, they have decided to split again somewhere in the second half of 2015.

What is the difference between eBay and PayPal?

Difference Between eBay and PayPal

• eBay is an online marketplace while PayPal is an electronic mode of money transfer.

• Merchants worldwide accept the service of PayPal, and it is considered as the most preferred method of payment on eBay.

• PayPal can be considered as a secure mode of online payments made by the customers.

• With the use of PayPal, the customer can purchase the items with a credit card, bank account or other sources.

• eBayservice accelerates the PayPal’s success.

• eBay data makes PayPal much smarter and it builds the confidence of the customers.


Further Reading:

  1. Difference Between eBay and Amazon
  2. Difference Between PayPal and Google Checkout 
  3. Difference Between PayPal and Western Union 
  4. Difference Between PayPal and Credit Card