EBay inked a deal to buy global payment platform Braintree in a roughly $800 million bid to better the mobile payment experience.
Ebay president and chief executive officer John Donahoe called the solution a “perfect fit with PayPal.”
Braintree will operate as a service within the eBay-owned PayPal, which projects its mobile payment volume will exceed $20 billion by year’s end.
The transaction with Braintree, which has worked with Uber, Airbnb, OpenTable and TaskRabbit, is expected to close in the fourth quarter.
Braintree’s Venmo mobile application gives users an easy way to pay each other using mobile devices and leveraging social networks.
While shoppers won’t notice the impact of the acquisition this holiday season, they should start to see an improved mobile shopping experience next year, said Anuj Nayar, PayPal’s head of strategic initiatives.
“One of the things that is difficult about the payment industry — [and] I am happy that payment is a regulated business — is for payment companies to expand internationally,” Nayar told WWD. “It’s very difficult for a Silicon Valley start-up in the payment space to rapidly grow internationally because every market in which you move into has a different set of regulations and policies.”
The nearly 15-year-old PayPal is in 193 countries, while Braintree operates in just 40 — but Nayar said this deal will allow Braintree’s customers to take advantage of PayPal’s relationships to accelerate expansion.
PayPal ended 2012 with $145 billion in total payment volume — with $14 billion, or nearly 10 percent, coming from mobile devices. In 2009, the payment giant did just $141 million in mobile payment volume.
According to eMarketer, total mobile commerce, or m-commerce, sales are projected to reach about $39 billion in 2013, comprising about 16 percent of all U.S. e-commerce sales.
A grooming moment between @tanfrance and @antoni last night at the The LGBT Community Center Trailblazer Awards honoring Anna Wintour, Ricky Martin and more. See more photos at WWD.com #wwdeye (📷: @lexieblacklock)
“It was a very surreal feeling. It wasn’t like we were in the studio together coming up with it — it’s more like he discovered it and loved it. I didn’t let myself get my hopes up, but then it happened it was very exciting,” said singer-songwriter @nombe on discovering that @pharrell would be using his song, “Cant Catch Me” on his HBO documentary series “Outpost.” The German-born singer — named Noah MacBeth — talked to WWD about feminism, using art as a platform for political expression and personal style. Read more on WWD.com #wwdeye (📷: @jilliansollazzo)
This season, denim is going west – in influence. Brands like @fathersdaughterla (pictured here), @tommyhilfiger Jeans, @levis and more are opting for raw, top-stitching styles. (Styled by @thealexbadia; 📷: @ryanplett)
20-year-old British singer @jorjasmith_ made her debut at Coachella last weekend. We caught up with her and talked about her love for Amy Winehouse, working with Kendrick Lamar on the “Black Panther” album and her fashion philosophy. Read the interview on WWD.com #wwdeye (📷: @katiedaisyla)
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)