
Today, eBay Australia announced their Safe Payment Initiative.
In a nut shell, the changes are as follows:
1. All items (with the exception of cars, motorcycles, aircraft, boats, caravans, trailers, commercial trucks, services, real estate and businesses for sale) listed for sale on eBay.com.au on or after May 21, 2008 will be required to offer PayPal as one of the payment methods.
2. All items appearing on eBay.com.au as of June 17, 2008 will be required to be paid for using:
a) PayPal (or)
b) paid for when picking up the item (or)
c) Visa/Mastercard transaction via PayPal
3. No other payments will be permitted
4. PayPal Buyer Protection will increase to a maximum of $20,000 (including postage) for eligible items purchased on or after June 17, 2008.
There were two primary reasons given for the changes:
1. The changes will make buying on eBay.com.au even safer with the $20K PayPal Buyer Protection. Plus, eBay data (note to self: how do I get my hands on this data?) shows that in 2007 people who paid with PayPal were four times less likely to enter a dispute than people who paid with bank deposit.
2. The changes will make selling more reliable with new PayPal Seller Protection. Again, eBay data was cited to have shown that in 2007 sellers who accepted PayPal were almost half as likely to experience an unpaid item than sellers who did not accept PayPal.
At face value, I think that people prefer having a choice and implementing this takes a number of existing choices away. However, one of our top priorities is to ensure that transactions on eBay are trouble-free and I know we don’t feel comfortable endorsing payment methods that result in a higher chance of a dispute and this does address that.
I’ve been told that there are no plans to go to a PayPal-only model for eBay in other markets – US included.



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