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Adobe Inc announced on Wednesday that it will add payment services to its e-commerce platform this year to help merchants accept credit cards and other payment methods, further competing with e-commerce company Shopify Inc. An online store that purchased Magento Commerce from private equity firm Permira for $ 1.68 billion in 2018.
By the end of this year, Adobe will roll out a new payment system in the United States and use PayPal Holdings to process various types of payments, including credit and debit cards, PayPal’s own payments and deferred payments.
In the past, Adobe e-commerce customers had to build their own payment systems. This works for large companies that can negotiate with payment processors, but Adobe wanted a simpler service for smaller merchants, said Peter Sheldon, senior director of commerce strategy at Adobe, Reuters. Said in an interview.
“What they really want is operational simplicity and all the reports and tweaks in one toolset,” says Sheldon.
Payment is a big part of the e-commerce business. By 2020, more than two-thirds of Shopify’s $ 2.93 billion in revenue came from the merchant services segment, which includes payments.
In the case of Adobe, the payment movement will follow a partnership with FedEx Corp earlier this year to help Adobe merchants manage delivery and logistics services.
Adobe’s move on Wednesday is “similar to Shopify in some ways, but it’s just trying to monetize different parts of what sellers need to sell online,” said IDC’s Digital Commerce. Research Director Jordan Jewell said. “Payments are big. In the world of payments, there is a lot of money in the hands.”
Adobe said it plans to expand to regions such as Canada, Australia and Western Europe in 2022. Sheldon told Reuters that the processing agreement with PayPal is not exclusive and that Adobe will expand further internationally after 2022, so it may work on other processors as well.
Stephen Nellis
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