PayPal agreed to pay $800 million for Braintree, a Chicago-based start-up that was founded in 2007 and has about 4,000 merchants using its service.
PayPal said Thursday it agreed to buy Braintree Payments Solutions as the payments division of eBay looks to expand further into mobile commerce.
PayPal agreed to pay about $800 million in cash for Braintree, a Chicago-based start-up that was founded in 2007 and has about 4,000 merchants using its service. Braintree's platform helps process payments for hot start-ups such as Airbnb, TaskRabbit and Uber.
Braintree, headed by Bill Ready, also owns Venmo, which lets users pay each other for free through a mobile app.
Mobile commerce is the fastest-growing part of e-commerce because people are increasingly using smartphones to shop and pay for things. PayPal has its own rapidly expanding mobile payments business, however, the company has lots of competitors, including Square and Google.
"Braintree is a perfect fit with PayPal," said eBay CEO John Donahoe. "Bill Ready and his team add complementary talent and technology that we believe will help accelerate PayPal's global leadership in mobile payments."
Braintree will continue to operate as a separate service within PayPal under CEO Ready, who will report to PayPal President David Marcus. Braintree's management team and employees are expected to stay in place, PayPal said.
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