eBay has pulled the pin on its controversial plan that would have forced all Australian users into using PayPal.

Only last week eBay said its PayPal changes -- which would require all bidders and sellers to use PayPal or COD as a payment method -- had been delayed indefinitely until a review process with the Australian Competition and Consumer Commission (ACCC) was complete.

However, it has now backed down entirely, leaving users again with the option of paying for products with all existing payment methods: direct deposit, personal cheques and money orders as well as COD and PayPal.

"We have decided to withdraw the notification to stop any further confusion and disruption among the eBay Community," read a company statement.

"eBay regrets any uncertainty that this process has caused among the Community and believe that today's decision will remove further doubt.

"Although we have decided not to move ahead with the further planned changes, eBay is pleased that all buyers can now choose PayPal along with other permitted payment methods of their choice."

At the time of the announcement in April, eBay trust and safety director Alastair MacGibbon, touted confidence and safety as the two key reasons for its decision. "It's all about increasing the safety and confidence of Australians on eBay," he said.

"You are four times less likely to have a problem on eBay if you pay for the item with PayPal. eBay is no longer willing to stand aside and allow payment methods on the site that are proven to be less safe to consumers".

eBay said its recently introduced safety measures, such as PayPal Seller Protection and increased PayPal Buyer Protection (now up to $20,000) will remain.