UK announcement – could this be eBay’s plan for driving Paypal coverage on eBay?

December 21, 2007

In their recent investment banker conference stops, both John Donahoe and Rajiv Dutta talked about the desire to increase the Paypal coverage on eBay up from the current (Q307) 61% (slide 30).

Today in the UK, eBay threw out this little announcement that for “buyer satisfaction”, 1-day listings, Software, MP3 Players, Mobile Phones and some B+I items now require PayPal as the only payment mechanism.  With some of our large sellers we’ve found up to 50% of buyers pay with credit card (via the seller’s merchant account), so it will be interesting to see how much of an uproar this has in the UK and if eBay brings it to the US.

Feedback 2.0 and several other major initiatives started with UK tests, spread to other countries and then crossed the pond to the US after a couple of months of tweaking.

Seller readers of eBay Strategies, how do you feel about the potential for PayPal being the exclusive payment options on 1-day auctions and several categories?  Sound out on comments.