Braintree recently in venture capital funding, and it has revealed what it is going to do with the money: give it away. Well, sort of.
The online and mobile payments solutions provider has announced a new program in which it will give $50,000 in processing credit to the next 1,000 startups that sign up with Braintree.
Sounds almost too good to be true, so is this a Halloween trick or treat?
Braintree asserted that there are no strings attached here as there are no contracts or fees involved.
Interested businesses can sign up for Braintree online. After that $50,000 has been processed, a startup can choose to stay with Braintree or switch to another payments platform. Braintree assured that it will give the company its data if company leaders decide to move on.
Being a somewhat young company itself still (founded in 2007), Braintree suggested that "the first several thousand dollars in revenue are one of the toughest hurdles for a new business to overcome." Thus, there in lies the motivation to help startups get over this hurdle.
Nevertheless, it's still possible to see Braintree's strategy in this.
The Chicago-headquartered company continues to position itself as the e-commerce backbone for rising tech stars by targeting smaller companies with smaller budgets and promising them the same technology and resources offered at the corporate level.
Examples of companies already using Braintree's platform include Rovio, Airbnb, LivingSocial, and Uber.
Braintree has been progressively ramping up its own resources, most recently throughof mobile payments startup Venmo.