In a move to accelerate PayPal’s global leadership in mobile payments eBay has recently announced that it will be acquiring global payment platform Braintree for USD 800 million in cash.
As a part of the deal, after the acquisition is completed, Braintree will continue to operate as a separate service within PayPal under the continued leadership of Braintree CEO Bill Ready.
Braintree’s mobile application Venmo that provides people with an easy way to pay each other using their mobile devices, which it had acquired in 2012, is also part of the acquisition and will help to contribute to PayPal’s mobile payments capabilities, which is projected to be of more than USD 20 billion this year.
PayPal, which is one of the dominant players in the online payment services, has around 120 million users, previously in March it had also acquired mobile app developer Duff Research to add to its technological expertise.
A Blogpost shared by Braintree stated that their association with PayPal will help them expand more quickly around the world and will also provide them with more tools to offer to their customers through its developer platform. “Simply put, the resources and scale that only PayPal offers will enable us to move forward with greater speed, broader reach, and higher ambition” it added.
Launched in 2007, Braintree allows online and mobile businesses to accept credit card payments by providing a merchant account, payment gateway, recurring billing and credit card storage.
Merchants from more than 40 countries across North America, Europe and Australia can accept payments in more than 130 currencies using its platform. It expects to process approximately USD 12 billion in payment volume in 2013
Braintree’s payment technology is used by startups such as Airbnb, TaskRabbit, Uber and OpenTable. It had raised about USD 69 million in venture funding from Accel Partners, Greycroft Partners and a few others.
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