E-commerce titan eBay is to acquire payments platform Braintree for US$800m in cash. Braintree’s platform enables next-generation web players like Airbnb and Uber to create compelling new consumer experiences and disrupt traditional business models.
The transaction is expected to close late in the fourth quarter of 2013. Once the acquisition is completed, Braintree will continue to operate as a separate service within PayPal under the continued leadership of Braintree CEO Bill Ready, who will report to PayPal president David Marcus. Braintree’s management team and employees are expected to stay in place.
“Braintree is a perfect fit with PayPal,” said eBay president and CEO John Donahoe.
“Bill Ready and his team add complementary talent and technology that we believe will help accelerate PayPal’s global leadership in mobile payments. Together, we expect that PayPal and Braintree also will accelerate our leadership in supporting developers who are creating innovative solutions for next-generation commerce start-ups.”
Venmo, Braintree’s mobile application that gives people an easy way to pay each other using their mobile devices and leveraging social networks, is part of the acquisition.
PayPal already has a strong presence in mobile, projecting a mobile payment volume of more than US$20bn this year.
“PayPal was built on helping entrepreneurs grow great businesses online. I’m thrilled to welcome the Braintree team,” said PayPal president David Marcus.
“With this deal I believe that we will accelerate our capabilities for developers, entrepreneurs, merchants and companies that are building the future.”
Mobile payments image via Shutterstock