PayPal is close to a deal that will leave it a richer company. It is about to acquire Braintree Payments Solutions.
EBay’s scheme termed PayPal is about to buy a concern known as Braintree Payments Solutions. Although it hasn’t been announced officially, the deal is sure to be sealed soon. The result of the merger will be to allow PayPal to gather the data and profitable exchange fees from Braintree’s burgeoning network. At present, the network handles in excess of $10 billion per year for OpenTable, Uber Technologies and Airbnb.
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Furthermore, it takes a 2.9% commission from mercantile concerns as well as a 30-cent exchange fee. There have been rumors regarding the breakdown of the deal. Nothing can be said for certain yet. PayPal wants to expand its domain. Therefore, it is looking beyond payment processing into the wonderful world of smart phones and tablets. And Braintree is just what it had in mind.
The deal would surely be a big fillip for PayPal. Payment for goods using a mobile device is the latest method of online buying and selling. This market sector will expand by 31% this year. In the next four years, it will swell to more than three times its current status.
The rivals, PayPal is looking forward to challenging include Google, Lemon and Square. The game is all about doing away with smart money or cumbersome wallets. Braintree’s Venmo division allows for payments free of cost via an application. As an enterprise, Braintree has really grown since its inception in 2007. PayPal can only benefit from this potential addition to its repertoire of acquisitions.