PayPal acquires Hyperwallet for $400 million
Last Tuesday, online payment provider PayPal announced that it had agreed to acquire payout platform Hyperwallet for $400 million in cash. The deal should reach completion in the fourth quarter of the year, and will increase PayPal’s exposure to the other side of Ecommerce, letting merchants access their earnings with greater ease.
PayPal’s share price has appreciated by 16% so far this year
SOURCE: Yahoo Finance
Hyperwallet’s Simon Banks told tech publication ZDNet "Marketplaces have been focused on creating a frictionless experience for consumers and buyers to pay in -- this is the world that Braintree and Stripe have really innovated. The payouts environment is more complex."
Hyperwallet was founded in 2000, and lets organisations easily distribute payments. It can be added with a “single integration” and the payees can choose from a number of different payment methods, including prepaid card, cash pickup, PayPal, and more.
PayPal’s chief operating officer, Bill Ready, released a statement over the acquisition, saying: "Ecommerce platforms and marketplaces are leveling the retail playing field by connecting buyers who have specific needs with groups of sellers that can meet them. Merchants and service providers who use these platforms want quick, efficient, flexible and secure access to their earnings, whenever and wherever they need them."
In addition to its core payout business, Hyperwallet includes a wide range of features like financial management tools and payment tracking. It also deals with the regulatory red tape, ensuring that transactions are compliant in every geographic region they’re offered.
Dominion holds PayPal in its Global Trends Managed Fund.
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