PayPal and eBay are working out the terms of their divorce, with the payment platform being freed-up to seek greener pastures.

The businesses are working on a five-year operating agreement in preparation for the split, which will guarantee PayPal a reliable source of income.

An independent PayPal will seek alliances with companies such as Google and Apple, where it would help the tech giant turn their products into tools for digital payments.

PayPal has outgrown its former partner, with eBay's revenue growth lagging due to stiff competition from Amazon.com and Alibaba.

The heads of both eBay and PayPal said the deals around the split will be designed so that both companies do not fall, and can remain competitive no matter what happens to the other.

Quite simply, the agreements will prevent eBay from forming a new payments service, and block PayPal from developing its own online auction house for physical goods.

eBay will be able to form its own payment service if PayPal is bought out by one of its competitors, but it would have to give PayPal 15 to 21 months notice.

Neither side has indicated whether there are prospective buyers for PayPal, but such contingencies have led to speculation that interest has been lodged. 

The companies will also continue to share data between each other to prevent fraud and assist customer service.

On the executive end, eBay CEO John Donahoe will chair PayPal's board, eBay director Thomas Tierney will take over chairmanship of the online marketplace, while eBay's current CFO, Bob Swan, will move up the ladder.

Pierre Omidyar, eBay's founder, will be a director of both companies after they separate.