The agreement — originally announced in September 2013 — creates a separate service offered by PayPal, which was acquired by eBay in 2002. The Braintree purchase is designed to enhance PayPal’s offerings in the mobile payments market, which has seen growth in competition from companies like Google and Infobip. The acquisition also will help Braintree expand its customer base.
Braintree will continue to be led by CEO Bill Ready, who will report to PayPal President David Marcus. Ready also has joined the PayPal executive staff.
Additionally, although Venmo, a peer to peer payments application acquired by Braintree in 2012, is included in the acquisition, the app will continue to be offered separately and will not be folded into PayPal.
“Braintree has a great position in new economy companies,” said John Donahoe, president and CEO of eBay, in an interview with The Wall Street Journal. “This will allow us to be a part of that.”
Current Braintree customers include: Airbnb, OpenTable, HotelTonight and Uber.