EBay Looks To Continue PayPal's Evolution With Braintree Acquisition

By Shad Bookout

With mobile payments slated to top $1 billion dollars this year, eBay (Nasdaq:EBAY) took another step forward in keeping PayPal as a leading source for mobile payments. EBay acquired payment platform Braintree, which processes over $10 billion a year in mobile payments for mobile purchasing apps such as Living Social, Uber and Fab for $800 million.

This is "a very significant deal for mobile payments," Rick Oglesby, a senior analyst at Aite Group, told Mobile Commerce Daily.

EBay is banking on Braintree's technology base, including offline payments and person-to-person payments, to bolster its mobile app. "We believe that PayPal's scale and global payments expertise, combined with Braintree's highly innovative mobile technology, adds up to a compelling combination for developers, merchants and, ultimately, consumers," a PayPal spokesperson told Mobile Commerce Daily.

Usage of mobile payment systems has slowed recently due to delays, system adoption challenges and a glut of new competition. However, PayPal is the preferred service for many users, and the acquisition should strengthen its market share.

EBay expects to generate $20 billion in mobile commerce transactions for eBay and another $20 billion in mobile payments transactions via PayPal this year.

For more:

-See this Mashable article
-See this Mobile Commerce Daily article

Related articles:

If Mobile Retail Is So Big, Why Is It So Small?
PayPal Tries For Hands-Free In-Store Payments With Beacon
Is Facebook Testing Its Own Mobile Payments?

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.