PayPal CFO John Rainey said Thursday there's been "misplaced concern" around eBay's announcement that sent PayPal shares tumbling.
EBay said Wednesday it will replace PayPal as its primary payments processor by 2021, an announcement that knocked PayPal down as much as 12 percent.
"There is nothing about yesterday's announcement that wasn't anticipated by us," Rainey told CNBC's "Squawk Alley. " "This is simply the next chapter."
PayPal will still be available on the site as one of the payment options, but it may see a dip in transactions as eBay offers customers the ability to use Dutch payments processor Adyen.
Shares of PayPal struggled to recover Thursday, paring losses to $79.42 in afternoon trading.
Rainey said the disconnect stems from a misunderstanding of the original deal.
"EBay was restricted for a period of time from having another payment service," Rainey said. "At the same time, we were restricted from going out and partnering with some of their competitors — some of the largest and fastest-growing marketplaces in the world."
That restrictive deal was always slated to end, Rainey said, allowing eBay to partner with Adyen — and letting PayPal explore partnerships with other companies.
EBay represents 13 percent of PayPal's total payments volume, according to company filings.
But that revenue sector has grown at an average rate of just 4 percent during the last 10 quarters — compared with an average growth rate of 23 percent for the rest of the business, Rainey said.
Rainey declined to comment on partnership discussions but said "it's fair to say that we talk to all the major companies."
On the PayPal earnings call Wednesday, CEO Daniel Schulman said the distancing from eBay is "the best possible outcome for PayPal."
"We feel good about where all this has come out. We've looked at it very, very carefully. It's always been in our plans, and we feel good now that we have certainty on the direction that we're going," he said.
— CNBC's Deirdre Bosa contributed to this report.