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eBay-Wells Fargo Net deal
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March 1, 2000: 8:14 a.m. ET
Internet auctioneer, bank to allow credit card payments to online sellers
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NEW YORK (CNNfn) - Online auctioneer eBay Inc. entered an alliance Wednesday with Wells Fargo & Co., the nation's No. 6 commercial bank, to launch a new service allowing individuals to accept credit card payments instead of personal checks when selling their goods online.
The service is designed to significantly expedite the millions of person-to-person transactions that take place over the Internet each year -- including those on eBay (EBAY: Research, Estimates), whose 10 million registered users generated $900 million worth of transactions last year.
Currently, eBay shoppers must mail money orders or personal checks to complete online transactions, delaying final purchase of their goods by several days, or even a week. The new service will allow customers to simply enter their credit card number, which will immediately transfer money electronically to the seller's personal account.
As part of the agreement, San Francisco-based Wells Fargo (WFC: Research, Estimates) agreed to take a 35 percent stake in Billpoint Inc., the online payment technology firm that developed the person-to-person payment platform. eBay acquired Billpoint last May.
In addition to helping provide data security, Wells Fargo also entered into a long-term payment processing and customer care contract with Billpoint. Wells Fargo offers one of the nation's top online banking services and holds a significant credit card portfolio.
Wells Fargo shares closed down 1-1/16 to 33-1/16 Tuesday, while eBay lost 1-11/16 to close at 143-3/8. 
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eBay Inc.
Wells Fargo
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