The online auction site eBay is planning to split off its payments system PayPal into a separate company. It expects to do that in the second half of 2015.
EBay's chief executive John Donahoe said: "A thorough strategic review... shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively."
PayPal's revenues are growing at 19% a year, twice as quickly as eBay's.
Its payment system is available in 203 markets worldwide and is expected to process 1 billion mobile payments this year.
PayPal's annual revenue is $7.2bn (£4.5bn), while eBay's is $9.9bn and is growing at 10% a year.
The move marks a reversal of strategy for the company.