PayPal shares were down by over 7% in pre-market trading on Thursday, hit by news that eBay had signed up a different firm as its primary payment processor.
eBay revealed it would begin processing its global payments through Dutch firm Adyen, though also said eBay shoppers would have the option of continuing to use PayPal for payments until 2023.
PayPal shares were additionally pressured as the company reported disappointing guidance for the first quarter. This was despite PayPal beating fourth-quarter results.
Dan Schulman, chief executive of PayPal sought to allay worries over the changing relationship with eBay, the company´s former parent, describing this as “manageable.”
PayPal has been steadily widening its customer base since it was spun out of eBay in 2015, having been predominantly focused on processing payments for eBay.