eBay to Buy Online Payment Services Startup Braintree for $800 Million Acquisition aimed at expanding and accelerating PayPal's mobile payments business

By Benjamin Kabin

Opinions expressed by Entrepreneur contributors are their own.

Minimalist™ by CAPSULE™

Braintree, the company that helps startups like Airbnb, LivingSocial, GitHub and Uber process online credit card payments, has been acquired by eBay in a cash deal valued at $800 million. The internet auction company said it plans to combine the talent from its just-acquired merchant account services provider with its ubiquitous PayPal payment offerings to "accelerate PayPal's global leadership in mobile payments."

In a statement, eBay said Braintree would continue to run as a separate service, within PayPal, under Bill Ready, Braintree's chief executive. Ready's new boss will be PayPal president David Marcus, and eBay said the Braintree team is "expected to stay in place."

Braintree processes $12 billion in payments annually, with more than one third of that coming from mobile. Before the deal, the company had reportedly also been in acquisition talks with mobile payments company Square.

The Chicago-based Braintree also operates Venmo, a mobile app that leverages social media to let users pay each other directly. Venmo was acquired by Braintree last year for more than $26 million.

"The alignment with PayPal means Braintree can continue to push the boundaries of innovation while expanding into new markets with increased speed and confidence," Ready says.

The deal is expected to close late this year.

Related: PayPal Updates iPhone, Android Apps to Make Transactions Smoother and Faster

Benjamin Kabin

Journalist

Benjamin Kabin is a Brooklyn-based technology journalist who specializes in security, startups, venture capital and social media.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Side Hustle

'Hustling Since Middle School': She Started a Side Hustle on Facebook Marketplace — Then a 'Game-Changer' Grew It to $25,000 a Month

Leena Pettigrew's "entrepreneurial spirit" inspired her to build a business with earnings that outpaced her full-time income.

Leadership

From Elite Athletes to Tech Titans — Discover the Surprising $100-Million Habit That Leads to Extraordinary Success

Success comes from mastering focus, eliminating distractions and prioritizing what truly matters.

Business News

Your Old Apple AirPods Can Soon Act as an Over-the-Counter Hearing Aid, According to the FDA

The new software is compatible with the Apple AirPods Pro and accessible through iOS — for free and now FDA-authorized.