The deal will give PayPal greater strength in eCommerce and online marketplaces, PayPal said in a statement. Marketplace sales accounted for 50 percent of all online sales in 2017, according to an estimate provided by PayPal.
“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,” said Bill Ready, chief operating officer at PayPal. “Merchants and service providers who use these platforms want quick, efficient, flexible and secure access to their earnings, whenever and wherever they need them. By acquiring Hyperwallet, we will strengthen our ability to provide an integrated end-to-end solution to help eCommerce platforms and marketplaces — however large or small — leverage world-class payout capabilities in over 200 markets.”
The completion of this acquisition, expected in the fourth quarter, will result in PayPal and Braintree, a payment processor owned by PayPal, having more prowess around “localized, multi-currency payment distribution capabilities … with numerous disbursement options, including prepaid card, bank account, debit card, cash pickup, check and PayPal,” according to the statement.
Hyperwallet has offices in Austin, London, San Francisco, Sydney and Vancouver. Hyperwallet CEO Brent Warrington and other company employees will report to Braintree General Manager Juan Benitez, Ready said.
As for PayPal, it recently bought Jetlore, the artificial intelligence-powered prediction platform. Jetlore’s platform is used by some of the leading retailers around the globe. The company’s proprietary prediction platform empowers global online retailers, such as Uniqlo and Nordstrom Rack, to deliver personalized customer experiences.