Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Druva inSync Free Trial
Druva inSync with DLP,
analytics & secure file sharing.

druva.com/inSync-Trial
Mobile Tech
Is your endpoint data protected?
Average Rating:
Rate this article:  
eBay Buys Payment Platform Braintree

eBay Buys Payment Platform Braintree
By Barry Levine

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

By buying Braintree, eBay extends its financial reach and removes a potential competitor to PayPal. It also helps eBay's evolution as an e-commerce powerhouse. The acquisition could help PayPal particularly in extending its footprint internationally, according to Roger Kay, an analyst with Endpoint Technologies Associates.
 


eBay has taken a big step toward better positioning itself for the growing market of financial transactions on smartphones and tablets. On Thursday, the company announced that it is buying global payment platform Braintree for $800 million in cash.

The acquisition, expected to close in the fourth-quarter, is intended to boost the reach, technology and logistical capacity of eBay's PayPal unit, as well as provide the company with transaction fees and customer data. Braintree currently handles financial processing for such companies as online restaurant booking service OpenTable and travel service Airbnb, with a total revenue stream expected to reach $12 billion this year. About one third of that total is from mobile payments.

eBay President and CEO John Donahoe said in a statement that "Braintree is a perfect fit with PayPal," providing "complementary talent and technology that we believe will help accelerate PayPal's global leadership in mobile payments." He added that the acquisition will help to "accelerate our capabilities for developers, entrepreneurs, merchants and companies."

"Impressive Mobile Payment Solutions"

On the PayPal blog, President David Marcus wrote Thursday that Braintree "has built impressive mobile payment solutions that handle transactions in 130 currencies in more than 40 countries," and noted that "mobile developers love Braintree's tools and the great hands-on service." He said that he admires the company "because they were one of the very first companies to understand the power of real mobile-first experiences," not just traditional e-commerce used on a mobile device.

At this point, eBay is far beyond its original identity as an auction site, and is maneuvering to become a major player in global transactions. PayPal's 2013 mobile payment revenue is expected to be over $20 billion, and now accounts for about 40 percent of eBay's total revenue.

The Chicago-based Braintree also owns a mobile application called Venmo that allows users to pay each other directly, mobile device to mobile device. Braintree bought Venmo in 2012 for $26.2 million.

"A Real Boon to eBay"

By buying Braintree, eBay extends its financial reach and removes a potential competitor to PayPal. Braintree's services include merchant accounts, payment gateways, a database of credit cards and billing, so that companies can accept payments.

Although it will become part of eBay, Braintree will continue to function as a separate service. The management team and current employees, totaling about 180, are expected to remain. PayPal has been battling smaller but growing competitors in the mobile space, such as Square. Braintree's competitors include credit card companies as well as, until now, PayPal.

Roger Kay, an analyst with Endpoint Technologies Associates, noted that PayPal "has been a real boon to eBay," helping the company to redefine itself beyond its origins, and, by extending PayPal's reach, this acquisition helps eBay's evolution as an e-commerce powerhouse. He added that the acquisition could help PayPal particularly in extending its footprint internationally.
 

Tell Us What You Think
Comment:

Name:

Philip Cohen:

Posted: 2013-09-27 @ 2:53pm PT
Whatever; the ugly reality of eBay Inc.:
The clunky "PreyPal" ... bit.ly/UVXx53
eBay's crooked auctions marketplace ... bit.ly/11F2eas
The ongoing joke of it all ... bit.ly/YvxFEg
Quotes from the eBay executive suite ... bit.ly/12xvzyA



IT departments are embracing cloud backup, but there's a lot you need to know before choosing a service provider. Learn all the critical things you need to know by accessing the white paper, "5 Things You Didn't Know About Cloud Backup". Access the White Paper now.


 Mobile Tech
1.   Glass Adds Voice Access to Contacts
2.   Samsung, B&N Partner on Nook Tablet
3.   Acer Desktop Box Rides Chrome Wave
4.   Apple Stock Soars Ahead of iPhone 6
5.   HTC One M8 Windows Phone Unveiled


advertisement
HTC One M8 Windows Phone Unveiled
Can be POS device for small business.
Average Rating:
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.