PayPal News Update: eBay Buy Braintree
PayPal News Update: eBay buy Braintree the online payment firm for five hundred million to add impetus to PayPal, to be used on customer’s mobile devices.
The Venmo app that is currently offered by Braintree allows customers to use their smartphones and tablets to make payments. This is an area where PayPal has been looking to expand its own operation. Although PayPal is dominant in this market it has always faced stiff competition from firms like Braintree. Over its one hundred and twenty million users, eBay processes almost half of the payments made for goods and services through PayPal.
One expert said that the move by the online giant eBay to buy Braintree made sense as a strategy that will increase and develop the authority of eBay’s unit PayPal while eliminating an important source of competition from the market and will leave the way clear for further dominance and expansion by the on line pay site.
The global product vice president of eBay Hill Ferguson suggested that further acquisitions may be on the cards to boost the availability of PayPal on mobile devises and tablets, although he would not be specific as to any plans that were currently under consideration in this respect. In March, however, PayPal bought Duff Research the mobile app developer to add expertise to the technological development side of the business. Recent research by IDC has predicted that by 2017 transactions completed by mobile would represent more than one trillion dollars. This is obviously an area that has a lot of room for growth and opportunity for those supplying the means by which customers can make and receive payments. The Braintree acquisition is forecast to be completed by the end of this year.
PayPal News Update
In other news PayPal had to admit that is had made a mistake and credited a man with sixty quadrillion pounds. The American customer, Mr Reynolds who lives in Pennsylvania found the amazing boost to his account when he received his monthly statement. However by the time he had managed to log in to his on line account the mistake had been rectified. PayPal apologised for the mistake and said that they were sure that the customer had realised it was an error. To make up for the mistake they have offered to make a donation to the charity of choice of the customer. Mr Reynolds said that finding such a large amount of money in his account had been quite a surprise to him.
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