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.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews