eBay opens NFT transactions, how the e-commerce giant opened a crypto payment enclosure campaign?

As cryptocurrencies are increasingly being accepted by merchants, hotels and more service platforms, the expansion of the scope of their usage scenarios will prompt e-commerce platforms, including eBay, to take more practical actions to meet consumers’ transaction needs.

eBay opens NFT transactions, how the e-commerce giant opened a crypto payment enclosure campaign?

As cryptocurrencies are increasingly embraced by merchants, hotels and more service platforms, their expanded use will prompt e-commerce platforms, including eBay, to take more practical action to meet the needs of consumers.

E-commerce giant eBay announced it is allowing the sale of non-homogenized tokens of digital collectibles such as trading cards, images or video clips on its platform, the first traditional e-commerce company to follow the recent NFT frenzy.

In the short term, the company said it will make NFT inventory available to eBay-compliant sellers, adding that users will see more trading plans, policies and tools regarding NFT in the future, allowing for a broader category of NFT buying and selling transactions. NFT currently available on eBay is based on the WAX blockchain and is only available for payment in U.S. dollars.

According to Jordan Sweetnam, senior vice president and general manager of eBay’s North American marketplace, “Over the next few months, eBay will be adding new features to bring blockchain-based collectibles to our platform.”

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Into the world of NFT, eBay had previously foreshadowed
It is worth noting that eBay has mentioned as early as a week ago that it is looking into the NFT market and hopes to enable NFT transactions on eBay.

The huge market potential is an important reason for eBay to enter the NFT market. 2021 NFT industry ushered in a new bull market, according to the latest report from NonFungible.com, NFT sales exceeded $2 billion in the first quarter of 2021, an increase of more than 20 times compared to the fourth quarter of 2020.

In particular, there were more than twice as many buyers as sellers in the first quarter, with 73,000 buyers and 33,000 sellers. The asymmetry in the number of buyer and seller transactions suggests a strong interest in NFT from newcomers. But it also suggests that existing investors want to retain their assets, which creates a market scarcity phenomenon.

Furthermore, the NFT industry is dominated by the art and collectibles sectors, particularly projects such as CryptoPunks and SuperRare.

On the crypto art trading platform SuperRare, the average price was $1,231 in the fourth quarter of last year and $6,585 in the first quarter of this year. The average price on trading platform CryptoPunks jumped from $2,500 to $95,900 in the first quarter in just a few months.

In the report on NFT trading answers, eBay said that at first only some categories of NFT were offered for sale, including music, trading cards, entertainment industry and other sectors of NFT could be sold on eBay.

In addition, only sellers trusted by the platform side can sell NFT. The report also points out that as eBay continues to collect feedback and transaction information from users, more NFT categories will be added subsequently.

It can be seen that previously, in addition to traditional art collectibles, sports stars, etc. continue to join the NFT field, now the traditional e-commerce sales platform is also aware of the considerable benefits that NFT will bring in the future.

And eBay has millions of users around the world, its first test not only greatly lowered the threshold for users to trade NFT, perhaps later will become the leader in the field of NFT electronic sales platform.

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Competing with PayPal? eBay is exploring cryptocurrency payments
In an interview with CNBC on May 4, eBay CEO Jamie Iannone said that eBay is expanding its current payment methods, such as Apple Pay and Google Pay, adding that the company plans to “continue to look at other options, such as cryptocurrency.

eBay is no newcomer to the cryptocurrency payments space. It joined Facebook’s blockchain project Diem (formerly known as Libra) two years ago, but in 2019 eBay said in a statement, “We highly respect the Libra Association’s vision. However, eBay has made the decision to forgo becoming its founding member. For now, our focus is on enhancing eBay’s managed payment experience.”

While eBay withdrew from Facebook’s cryptocurrency program at the time, it has been considering adding bitcoin and other cryptocurrencies as a payment method on the platform since at least 2014.

As of now, eBay has not announced any specific plans on how it will add cryptocurrencies to the platform.

Interestingly, on the same day, payments giant PayPal was revealed to be exploring the launch of a stablecoin. Four sources with knowledge of the situation told The Block that PayPal has been exploring a number of stablecoin protocol developers in the industry and may be leaning toward partnering with third-party companies for a stablecoin business.

” PayPal continues to explore digital currencies, the potential of digital financial services infrastructure and how we can help enhance digital commerce as a trusted partner in the space.” A PayPal spokesperson said.

If PayPal is indeed moving forward with a stablecoin project, it would indicate that it is extending and expanding its moves in the crypto space. Stablecoins are digital assets that represent legal tender or government-backed currencies and use the blockchain network as a payment tool.

According to data collected by The Block, there are currently more than $80 billion of stablecoins in circulation in the market.

Paypal and eBay do not appear to be in direct competition in the crypto space. in 2002, the partnership between Paypal and eBay was a sensation and became one of the most iconic mergers and acquisitions in the global internet world.

But it didn’t last long, and in April 2015, eBay announced that PayPal would be splitting out. And a five-year operating agreement was signed before the split.

The agreement prohibited eBay from launching a payment service for five years and prohibited PayPal from developing its own online marketplace for the entity.

This agreement could only be changed if PayPal was acquired by an eBay competitor. And eBay won’t be able to create its own payments platform until 18 months after PayPal is acquired.

Since PayPal launched its cryptocurrency payment service last year, it has done well in terms of transaction volume and number of users. Previously, in April, PayPal’s CEO Dan Schulman revealed at the event that PayPal’s crypto service would reach $200 million in transaction volume in the future in a few months or less.

Whether due to competitive threats or based on the innovation and challenges that the crypto market itself brings to traditional finance, it may only be a matter of time before eBay launches a cryptocurrency payment service.

When dogcoin burst onto the scene on April 22, more than 140,000 people signed a petition calling on Amazon to accept dogcoin as a payment method at the time.

While Amazon did not respond to the request, the company previously posted a job ad looking to hire candidates to join its digital and emerging payments division. However, the job ad has since been pulled.

There are currently many considerations for traditional e-commerce giant platforms to consider supporting cryptocurrencies as a payment method based on legal regulatory uncertainty.

However, as cryptocurrencies are increasingly accepted by merchants, hotels and more service platforms, their expanded range of usage scenarios will prompt e-commerce platforms, including eBay, to take more practical action to meet consumer transaction needs.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ebay-opens-nft-transactions-how-the-e-commerce-giant-opened-a-crypto-payment-enclosure-campaign/
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