Reserve Bank of Australia Comments on eBay's PayPal Mandate

The Reserve Bank of Australia has made comments to the Australian Competition and Consumer Commission's inquiry into eBay's recent announcement that it would mandate the use of PayPal for payments on eBay's Australian site. The RBA comments: 'The proposed conduct by eBay is to mandate the use of PayPal for almost all transactions on the eBay site. This raises three potential issues in relation to the payments system. The first is that it could limit the ability of new on-line payment systems to become established and for alternative systems to compete in the on-line payments space. The second is that it could restrict merchants' ability to negotiate lower fees. And the third is that it restricts choice for consumers.' More in the RBA's full submission. Also, CNN reports on eBay's move.