Ebay and Paypal have completed their split

Ebay and Paypal are no longer part of the same company since Friday. The payment processor, which was previously acquired by Ebay, will continue as a separate company, trading as such on the exchange starting Monday.

Both companies made the announcement today, Business Insider reported. Due to the split, Ebay will lose an important source of income, although Paypal is less profitable than the trading site itself. Paypal will be traded on the stock exchange as a separate company from Monday, but agreements have been made with Ebay. For example, the trading website promises to handle at least 80 percent of its transactions via Paypal in the coming years.

Recently, Ebay also decided to divest its business branch. With this, the company wants to raise a cash amount of 925 million dollars, which is approximately 854 million euros. Ebay needs the money to turn its business around. Due to disappointing business results, it announced in January that it would have to cut 2400 jobs.

Ebay and Paypal announced some time ago that they would split up. Last year, Ebay said it wanted to divest the payment processor. The decision to discontinue Paypal as part of Ebay is said to have been made for strategic reasons. There were also rumors that Paypal would be sold, but that did not happen. Ebay acquired the payment processor in 2002 for $1.5 billion. That is now about 1.39 billion euros.