EBay’s PayPal Acquires Payments Gateway Braintree

TechCrunch 26 Sept
Ebay’s PayPal has acquired Chicago-based payments gateway Braintree, in an all-cash deal worth $800 million. We had originally reported that Braintree was on the block, with Square and PayPal both in acquisition talks for the company.
Although owner eBay is leading on the news, the intention is to combine Braintree with its PayPal payments business. “Braintree is a perfect fit with PayPal,” said eBay Inc. President and CEO John Donahoe in a statement. “Bill Ready [CEO of Braintree] and his team add complementary talent and technology that we believe will help accelerate PayPal’s global leadership in mobile payments. 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.” Ready will report to David Marcus, who is the president of PayPal.
Braintree — which had raised $69 million in outside funding from Accel, NEA, RRE, Greycroft and others — was founded in 2007. Braintree essentially powers and automates online payments for merchants and companies online. The company provides a merchant account, payment gateway, recurring billing, credit card storage, support for mobile and international payments, and PCI Compliance solutions. Braintree has become a one-stop-shop for all the services a business needs to receive payments from anywhere in the world.

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