Ebay bolsters PayPal’s mobile service with Braintree purchase
Ebay has moved to strengthen PayPal’s presence on mobile devices by acquiring online payment firm Braintree, who are specialists in the field.
Key to the deal is Braintree’s Venmo app, which allows consumers to make payments on smartphones and tablets, a key growth priority for the online auctioneer.
PayPal remains the dominant online payments service but its market leading position has come under growing pressure in recent years from smaller rivals such as Braintree.
At present PayPal boasts 120m users who provide 40 per cent of Ebay’s total revenue.
Commenting on the deal Hill Ferguson, Ebay's vice president of global product, hinted that further acquisitions in the sector may be in the offing, stating: "Anything's possible.”
The purchase should be completed by the end of the year.