Power shift: eBay drops American Express over high fees 🫢; Brex and Ramp but for banks 💳

FinTech is Eating the World, 10 June

Hey Everyone,

Happy Monday! Today we’re going to be looking at eBay which decided to drop American Express over high fees (what it’s all about & why it matters + a bonus deep dive into AmEx & why you should pay attention to it), and a spend management FinTech that’s taking a different strategy than Brex or Ramp (what’s the USP here & why you should be keeping an eye on them). Let’s jump straight into the interesting stuff 🌶

Power shift: eBay drops American Express over high fees 🫢

The news 🗞️ Online marketplace giant eBay EBAY 0.00%↑ announced it will stop accepting American Express AXP 0.00%↑ cards globally starting August 17, 2024, due to what it calls unacceptably high fees.

The decision comes after failed negotiations between the two companies over the merchant discount rates charged by AmEx.

Let’s take a look at this and see why it matters.