PayPal has agreed to acquire HyperWallet for $400 million
Payment giant PayPal (PYPL) announced on June 19 that it agreed to acquire HyperWallet for $400.0 million in cash. HyperWallet is an 18-year-old company that helps merchants and small enterprises receive payments for products they sell via online marketplaces.
HyperWallet has a presence in more than 200 countries, utilizing bank transfers, cards, and PayPal to facilitate these payments. The acquisition follows the announcement of last month’s $2.2 billion takeover of iZettle, which is equivalent to Square in Europe.
PayPal’s acquisition of Braintree has spurred its revenue growth
On June 19, Braintree, which was acquired by PayPal in 2013, stated, “Hyperwallet will strengthen our ability to provide an integrated end-to-end solution to help ecommerce platforms and marketplaces.” This acquisition could complement PayPal’s current suite of services for online marketplaces.
Through its Braintree unit, PayPal already manages payments for Uber and Airbnb, as well as other online marketplaces. Braintree owns Venmo, a mobile payment app.
As the graph above shows, PayPal’s revenue growth has accelerated over the last few quarters, thanks to the acquisition of Braintree. PayPal stock has risen 62.8% over the last 12 months.