eBay to acquire global payment provider Braintree. The company will pay around $800 million for Braintree, which provides a payment system for online and mobile startup companies. eBay is buying another payment option to join forces with PayPal.
Braintree serves such companies as Airbnb, GitHub, OpenTable, TaskRabbit, and Uber. It likes you send money to other people via your smartphone by a mobile app called Venmo. eBay is expecting Venmo to generate sales of more than $20 billion this year, along the side of PayPal mobile payments market. Braintree will run a separate service within PayPal and report directly to PayPal President. Braintree's current management and employees are expected to remain the same. eBay CEO John Donahoe said "Bill Ready and his team add complementary talent and technology that we believe will help accelerate PayPal's global leadership in mobile payments. Together, we expect that PayPal and Braintree also will accelerate our leadership in supporting developers who are creating innovative solutions for next generation commerce startups." Therefore with Braintree partnering with eBay, eBay gets more clients and more ways to pay besides PayPal. This is a big step forward for both eBay and Braintree.