eBay Inc (NASDAQ:EBAY) subsidiary PayPal has acquired Braintree for $800 million. PayPal’s acquisition of Braintree essentially is a competitor buyout. Braintree is known for offering businesses with a payments gateway through a virtual point-of-sale system. Braintree offers a merchant account and tools for accepting credit card purchases online and through mobile apps. Some of Braintree’s larger customers include Uber, TaskRabbit, OpenTable, and Airbnb. Braintree also runs an app called Venmo, which lets users transfer money to each other.
“As a separate service offered by PayPal, Braintree will be able to scale its platform at a rate that is just not possible for a startup. PayPal?s already solved many of the regulatory and logistical hurdles that will help to extend Braintree?s reach to more customers in more markets even faster. Our resources will enable them to push the boundaries of innovation with ambition and confidence for consumers, merchants and developers around the world. It?s business as usual for Braintree. Braintree will continue to maintain its best-in-class service for its customers and developers for the foreseeable future,” stated PayPal president David Marcus on the PayPal Blog.
Braintree’s 210 employees, including CEO Bill Ready will be joining eBay as part of the acquisition. This deal is expected to close in Q4.