Popular e-commerce website eBay is looking into moving away from electronics payment via PayPal, according to some reports.
The resulting news saw the company's stocks jump nearly 4 percent in midday trading on Aug. 21.
Accordingly, reports are circulating that potential candidates for an executive position at PayPal -- the popular online banking system that works via a person's email address -- have been informed about the possible end of eBay's relationship with the payments company. That could throw a wrinkle in PayPal's future, as it has been with eBay for a number of years and has generated massive income and interest since it joined up with the e-commerce site.
The move away from PayPal could happen as early as next year. Rumors have abounded the company may be looking at bitcoin as a potential replacement, which would give much-needed backing to the online digital currency.
Bitcoin recently was added as an option on Google's currency exchange app and several online retail businesses also moved to accept it as payment for their goods, which has given renewed interest in the online currency, Tech Times reports.
Still, eBay CEO John Donahoe has thus far refused to go a different direction, saying that PayPal is a major and important aspect of how the e-commerce company does business. He believes a break would not make sense.
"The board will continue to assess all alternatives to create that long-term value and to enhance the growth and competitive positions of both eBay and PayPal. This position has not changed," eBay spokeswoman Amanda Miller said.
"As we discussed during proxy season and in our [second-quarter] financial results call, the board will continue to assess all alternatives to create that long-term value and to enhance the growth and competitive positions of both eBay and PayPal," Miller said. The subject came up when a stockholder pushed the idea forward in April.
Despite the discussion over leaving PayPal behind, nearly half of eBay's revenue during the last quarter came from PayPal. The company reported $4.37 billion in total revenue for the period with around $1.95 billion coming from PayPal, a 20 percent increase from the previous year.
Most analysts believe eBay would do well to keep its PayPal electronics business apparatus, at least for the current period, as it has been successful at streamlining the process and allowing users to do business with ease and simplicity, often with one click of the mouse.
