PayPal Holdings announced that it has agreed to acquire Hyperwallet, a global payout platform, for $400 million in cash, subject to certain adjustments.
The acquisition of Hyperwallet enhances PayPal’s payout capabilities, improving the company’s ability to provide an integrated suite of payment solutions to ecommerce platforms and marketplaces around the world. According to Internet Retailer, marketplace sales accounted for more than 50% of global online retail sales in 2017.
Upon closing, PayPal and Braintree merchants will gain localized, multi-currency payment distribution capabilities in more than 200 markets with numerous disbursement options, including prepaid card, bank account, debit card, cash pickup, check and PayPal.
Consumers are shopping and using online marketplaces almost daily because these marketplaces are bringing consumers and providers, from retailers to freelancers, together in ways that weren’t previously possible. In fact, marketplace sales accounted for more than 50% of global online retail sales in 2017 according to Internet Retailer. This is a tremendous market opportunity for us, one we are uniquely positioned to capture.
Today, the PayPal platform powers many of the world’s largest marketplaces — Uber, Airbnb and eBay, along with many others. Marketplaces are complicated to run because they require serving all sides of the market simultaneously, including consumers who want to use particular payment methods and sellers who need to get paid, regardless of how the consumer wants to pay.
Additionally, merchants and service providers who use ecommerce platforms and online marketplaces want quick, efficient, flexible and secure access to their earnings, whenever and wherever they need them.
Hyperwallet – with offices in Austin, London, San Francisco, Sydney and Vancouver – provides organizations with a frictionless, transparent, and reliable way to distribute funds to their global sellers, content producers, contractors, suppliers and resellers.
By acquiring Hyperwallet, Paypal will be able to provide PayPal and Braintree merchants with access to a comprehensive payments solution, including Hyperwallet’s localized, multi-currency payment distribution capabilities in more than 200 markets with numerous disbursement options, including prepaid card, bank account, debit card, cash pickup, check and PayPal.
Paypal expects to close the deal in the fourth quarter of 2018 and will begin integration efforts then. Once the acquisition closes, Hyperwallet CEO Brent Warrington and the Hyperwallet team will report to Braintree General Manager Juan Benitez.
Featured image via Pixabay