Apple Inc. (NASDAQ:AAPL)‘s recent launch of its mobile payment platform, Apple Pay, rang a few alarm bells for eBay Inc (NASDAQ:EBAY) as its stock took a bath since investors feared more competition for its PayPal. However, eBay Inc (NASDAQ:EBAY) has responded well to Apple Inc. (NASDAQ:AAPL)’s roar and alsoin a timely fashion, as reported by Susannah Lee of TheStreet.
Lee relayed the intentions of the online auction platform to spin off its payments platform.
“[…] eBay Inc (NASDAQ:EBAY) is sharply higher in early trading after saying it will split PayPal business to become two publicly listed companies. The transaction is expected to be completed in the second half of 2015 […],” said Lee.
Apple Inc. (NASDAQ:AAPL)’s Apple Pay wasn’t the only threat that eBay Inc (NASDAQ:EBAY)’s PayPal faced. According to the article on TheStreet by an independent contributor. Another competitor in the form of Lending Club, which is a peer-to-peer lending company has also recently decided to go public.
As eBay Inc (NASDAQ:EBAY) saw the scene of online payments go through tumultuous times in terms of several competitors jumping on the boat, it made the right decision to regroup, think the situation through and decide on a spinoff. This gives both businesses, the auction and the payment, a fighting chance. There is no need for one to take the other down with it, if it comes to that.
There weren’t a lot of similarities between the two arms of eBay Inc (NASDAQ:EBAY) to begin with and the latest move gives both of them a chance to focus on their future separately.
PayPal’s biggest fear remains Apple Inc. (NASDAQ:AAPL)’s payment platform, owing to the reputation that the tech industry has in terms of launching new products. Apple Inc. (NASDAQ:AAPL) can reach out to consumers in a way, so as to make its products an essential part of their lives. A trait shared by only a handful of other tech companies.
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