eBay and PayPal: Customer Testimonial Video

Learn how eBay and PayPal are transforming their financial processes with the help of SAP. Their unique use of SAP software and PayPal for vendor payment processing is an innovative and leading business practice for online shopping and payment processing.

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  • http://www.sap.com/demos/mmov/videos/ebay-and-paypal-customer-testimonial-video.mp4
    • My name is Jennifer Ceran, and I am corporate treasurer of eBay and I run SAP. eBay is a $9 billion company. We are made up of two businesses. So eBay is the World's largest online marketplace and PayPal is an online payment method that enables e-commerce take place on the web. What makes us unique in the industry is that prior to there being an eBay, it's very difficult to buy and sell. By enabling the sale of goods and services on the Web, we've made that market much more efficient. And PayPal is unique in that, before we had PayPal, when you bought something from a consumer you had to use a check and today you can effectively pay online very quickly. Couple of years ago, we wanted to explore whether or not we could actually use PayPal to pay our vendors. So, in trying to add PayPal as a payment method in our SAP/ERP, we approached the SAP custom development team in early July of last year. We told them that we wanted to be able to implement this solution for our vendor payments by October. And so, SAP quickly amassed a team of folks who really knew PI well. And in a period of two weeks, I think, we wrote the business requirements, and in another two weeks we actually implemented. And then it took us about two weeks of testing. And since we've gone live, it's probably been nine to ten months now ... we've not had a single issue. We use SAP to cash position all of our PayPal accounts. Before that payment file is sent over to PayPal, we get a piece of information which says, what is the balance in the PayPal account. What happens is if the amount of money in the PayPal account is less than the payment file, they send us an email through SAP and we get that data that says we need to fund the account. So SAP collects all of our bank balance information and gives us visibility into those accounts. It's kind of taken a lot of time saving out of the process of not having to go in check. This system checks for us and SAP has been a great enabler in that. On a supplier side what they have told us is even we are paying at our 30 days terms, they feel they are getting their money more quickly and not because of the minute we send a file to be processed via PayPal, they get their money. They also love it because it is very low cost so they are saving time and they are effectively saving money. SAP has helped us be both agile and innovative. We don't know of anyone who pays today their vendors from SAP using PayPal, but we're hoping that this will be something that others will find as valuable as we have.
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