PayPal to acquire Hyperwallet for $400 million
PayPal on Tuesday announced it's acquiring the payout platform Hyperwallet for $400 million in cash. The deal is expected to close in the fourth quarter of 2018.
Founded in 2000, Hyperwallet gives organizations a way to easily distribute payments. Organizations like e-commerce platforms or marketplaces can add Hyperwallet with a single integration. Meanwhile, the payees can choose from a range of payment methods including prepaid card, bank account, debit card, cash pickup, check and PayPal.
"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's Simon Banks told ZDNet last year.
Once the deal closes, PayPal and Braintree merchants will have access to localized, multi-currency payment capabilities in more than 200 markets.
Hyperwallet also offers features like financial management tools and payment tracking. It also ensures transactions are compliant with regulations that vary from country to country.
"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," PayPal COO Bill Ready said in a statement. "Merchants and service providers who use these platforms want quick, efficient, flexible and secure access to their earnings, whenever and wherever they need them."
The Hyperwallet deal comes a month after PayPal announced its plans to acquire iZettle, a Swedish firm that provides mobile card readers and other payment tools, for $2.2 billion.