EBay to acquire payments startup Braintree for $800 million cash

The acquisition is meant to enhance PayPal's mobile offerings

David Marcus, PayPal President on left, William Ready, Braintree CEO on right.

David Marcus, PayPal President on left, William Ready, Braintree CEO on right.

PayPal's parent company, eBay, plans to acquire payments startup Braintree for approximately US$800 million in cash to enhance PayPal's mobile capabilities.

Braintree offers a platform designed to make it easier for companies to accept payments in apps or on websites. Experienced developers should be able to integrate the platform in less than half an hour, allowing companies to start accepting payments quickly, according to the company.

EBay said that it hopes that PayPal and Braintree will be able to better support developers together. Once the acquisition is completed, Braintree will continue to operate as a separate service within PayPal, it said.

The Braintree service is used by companies like Web-based accommodation service AirBNB and taxi-hailing service Uber. It is used by merchants in more than 40 countries across North America, Europe and Australia. The merchants can accept payments in more than 130 currencies.

"By joining with PayPal, we'll be able to expand more quickly around the world. We'll have more tools to offer to our customers through our developer platform. The universe of consumers that we can reach with our services that make it easy for people to pay on a mobile device will expand significantly," Braintree's CEO William Ready said in a blog post.

Braintree's mobile application Venmo is part of the acquisition and will help to contribute to PayPal's mobile payments capabilities, eBay said in the release. PayPal's mobile payment volume is projected to be more than $20 billion this year, it added.

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close late in the fourth quarter of 2013.

Loek is Amsterdam Correspondent and covers online privacy, intellectual property, open-source and online payment issues for the IDG News Service. Follow him on Twitter at @loekessers or email tips and comments to loek_essers@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuespaypalBrainTree

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Loek Essers

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?