eBay announced last week that it will acquire global payments platform Braintree in an $800 million deal expected to close late this year.
eBay President and CEO John Donahoe said the company will be a perfect fit for PayPal, which is owned by eBay.
“Bill Ready and his team add complementary talent and technology that we believe will help accelerate PayPal’s global leadership in mobile payments,” Donahoe said. “Together, we expect that PayPal and Braintree also will accelerate our leadership in supporting developers who are creating innovative solutions for next generation commerce startups.”
Braintree’s platform powers Airbnb, OpenTable, TaskRabbit and Uber. After the acquisition is complete, Braintree will continue to operate as a separate service under the continued leadership of CEO Bill Ready. Braintree staff and management are expected to remain in place.
“The alignment with PayPal means Braintree can continue to push the boundaries of innovation while expanding into new markets with increased speed and confidence,” Ready said. “Our current customers and developer community can expect the same level of support and partnership they’ve always enjoyed, coupled with more resources.”
Braintree’s Venmo mobile app that allows peer-to-peer mobile payments is part of the acquisition and will contribute to PayPal’s presence in the mobile payment industry.