Online auctioneer eBay Inc.
and Wells Fargo and Co. the No. 7 U.S. bank, on
Wednesday said they would team up to operate a new payment
system that would allow online sellers on the giant auction site
to take credit cards.
The alliance will enable Billpoint Inc. an online payment
technology firm eBay acquired in May, to immediately serve
eBay's more-than 10 million users, the companies said.
As part of the deal, Wells Fargo & Co. agreed to purchase a
35 percent stake in Billpoint from eBay pending Federal Reserve
approval. Wells Fargo also entered into a long-term payment
processing and customer care contract with Billpoint.
During the fourth quarter eBay users generated annualized
gross merchandise sales of about $4 billion, the companies said.
"Partnering with Wells Fargo not only offers eBay buyers a
fast, convenient, and safe way to pay, but also enhances trading
velocity and efficiency for eBay sellers," Meg Whitman, eBay
president and chief executive, said in a statement.
Shares of eBay Tuesday closed at 143-3/8, while shares of
Wells Fargo closed at 33-1/16.
