Ebay is to eject PayPal from its platform with the introduction within two years of an alternative, which will see PayPal fully phased out by 2023.

Dutch payments business Adyen BV will become eBay's main back-end payments service by 2020, with PayPal remaining a check-out option until around 2023.

The decision comes less three years after the two companies - eBay and PayPal - formally split. Ebay had acquired PayPal in 2002, shortly after it made its debut on the Nasdaq stock exchange, making a millionaire of co-founder Elon Musk.

Now, according to Bloomberg, eBay is looking to switch its payments business to Netherlands-based Adyen BV. PayPal was formally spun-off from eBay in 2015, but the two companies had an agreement to continue working together until 2020.

In a statement, the company said that while PayPal will no longer be the main payment service for customers, it will still be offered as a checkout option until around 2023.

"Ebay has signed an agreement with Adyen to be its primary partner for payments processing globally, including in North America," it said in a statement.

"Adyen powers payment processing for a number of the world's leading global marketplaces and brings to this partnership a broad global footprint with a flexible and scalable technology platform."

The firm will start implementing Adyen for users in North America at some point in 2018, but it may not expand to the rest of the world until 2021. PayPal's shares fell by nearly 15 per cent on the announcement, given its entrenched position on eBay's platform.

Consumers have long complained about the eye-watering size of PayPal's processing fees, which have regularly been increased since it was adopted, but eBay said that Adyen will be cheaper and more flexible for everyone. It can currently handle 150 currencies.

"Most sellers can expect their costs of payments processing to be reduced after they transition to eBay's intermediated payments model, and benefit from a simplified pricing structure and more predictable access to their funds," the firm said.