ONLINE AUCTION HOUSE eBay has announced that it has bought payment service Braintree for $800m in a bid to improve Paypal's mobile services.
Braintree was founded in 2007 and provides an online payments service for companies and merchants. The firm serves $12bn in payments annually and is used by a number of big names including Uber, Github and Airbnb. Perhaps most interestingly, the firm said last year that it managed to build the company that "Paypal should have built".
eBay clearly doesn't disagree, and is hoping that by integrating Braintree into its Paypal unit it will be able to improve its mobile offering, although it's still unclear how Braintree's technology will be used or what eBay plans to do with the service.
eBay CEO and president John Donahoe said, "Braintree is a perfect fit will Paypal. [Braintree CEO] Bill Ready 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 will accelerate out leadership in supporting developers who are creating innovative solutions for next generation commerce startups.
Ready added, "The alignment with Paypal means Braintree can continue to push the boundaries of innovation while expanding into new markets with increased speed and confidence.
"Our current customers and developer community can expect the same level of support and partnership they've always enjoyed, coupled with more resources."
eBay's Braintree acquisition is expected to close in the fourth quarter. µ