eBay to buy payments platform Braintree for $1b, merge it with PayPal
SAN FRANCISCO (AFP) - Online retailer eBay is acquiring the mobile payments platform Braintree for US$800 million (S$1 billion) in cash. The deal allows eBay to merge the service with PayPal, its own online payments service.
"Braintree is a perfect fit with PayPal," said eBay president and chief executive John Donahoe, adding that the deal would "add complementary talent and technology that we believe will help accelerate PayPal's global leadership in mobile payments".
Braintree's payment platform is used for a number of online firms such as Airbnb, OpenTable, TaskRabbit and Uber. Its mobile app called Venmo gives people an easy way to pay each other using their mobile devices.
Braintree will operate as a separate service within PayPal after the deal is completed, according to a statement.