The split is a logical progression for PayPal, but eBay needs to show that it's also a smart decision for its core e-commerce business as Amazon lures away sellers.
Sharon Profis compares the security, ease of use and availability of some of the most popular mobile payment options.
Jack Ma, co-founder of the Chinese e-commerce giant, is "very interested" in a deal between his Alipay and the new Apple Pay service. He's also bothered that in Chinese movies, the hero always dies.
The company's marketplace business continues to grow, despite a security breach in the spring, but it doesn't meet Wall Street's expectations for overall revenue.
PayPal co-founder Peter Thiel says it makes sense for eBay to split from the online payments service. Now, PayPal will need to focus on making its product more competitive in a mobile world.
"We want PayPal to be a presence however consumers want to pay," eBay CEO John Donahoe says.
The separation, brought up by activist investor Carl Icahn in January, will include new management teams for both businesses.
The mobile payments space got competitive quickly and Samsung and Paypal are teaming up to take on Apple.
The online-payments company is testing the waters by partnering with other companies willing to process transactions using the digital currency.
In a newspaper ad reacting to Apple's new payment system, PayPal suggests it's not secure. And, well, PayPal is.