E-commerce company eBay said Tuesday that it is spinning off its mobile payment service PayPal into a separate and publicly traded company next year.
The companies have been intertwined since eBay bought PayPal 12 years ago for $1.3 billion. Ebay connects buyers and sellers, and both can use PayPal to make or accept payments.
Besides online payments, PayPal users can also pay for items in some physical stores.
The split comes as competition in the mobile payment industry heats up. Apple Inc. announced a new digital wallet service, called Apple Pay, last month.
PayPal and eBay said that the two companies will be led by new CEOs when the deal closes in the second half of 2015.
Here is what the split companies look like:
REVENUE: $9.9 billion in the past year.
ACTIVE USERS: 149 million.
ALSO OWNS: Concert and sports ticket reseller StubHub.
FUTURE CEO: Devin Wenig, current president of eBay Marketplaces.
REVENUE: $7.2 billion in the past year.
ACTIVE USERS: 152 million.
ALSO OWNS: Payment technology company Braintree, used by startups such as vacation rentals website Airbnb.
FUTURE CEO: Dan Schulman, former executive at American Express.